ESIC is a health insurance program designed to protect the interests of workers in times of medical emergencies, including maternity leave, sickness, temporary or permanent physical disablement, employment-related death, etc.
Employees and employers contribute 2.75 percent each to this self-funded program. ESIC registration can be completed online or by contacting a local ESIC office.
Read this article to learn more about ESIC registration, claim procedures, and benefits.
What is Employee State Insurance Corporation (ESIC)?
A state-owned insurance company, known as ESIC, is an autonomous entity that is governed by the Indian Ministry of Labour and Employment.
This scheme provides disability benefits, unemployment benefits, medical benefits, and maternity benefits to members.
Making contributions under the ESIC Act entitles the working force to benefits.
Features and Benefits of ESIC
Registration with ESIC offers numerous benefits to employees, including the following:
- Benefits: From the moment the insured person applies, they receive complete medical care. A retired person or permanently disabled person can also get medical insurance by paying an annual amount of $ 120. There is no set limit on the amount they can spend on treatment.
- To be eligible for the sickness benefit, the insured person must make 78 days of contribution in the 6-month period. If the employee is sick for more than 91 days in a year, the employee can receive a cash benefit.
- The maternity benefit is paid for up to 26 weeks during pregnancy, along with one month of medical advice. This may be extended to 70 days for the next two contribution periods.
- It is paid in monthly installments at 90% of the employee’s wage as long as the employee’s disability continues as determined by the Medical Board.
- As determined by the medical board of India, a permanent disablement benefit is payable at a 90% rate of the wage in situations where the employee has lost his or her earning capacity. This amount is also paid monthly.
- The Dependents Benefit (DB) is paid to the deceased’s dependents in monthly installments. It is also paid at 90% of the deceased’s wage when the employee died as the result of occupational hazards or job injuries.
- ESI Scheme coverage does not cover confinement expenses if the confinement occurs at a location where adequate medical benefits are not available.
- The employee’s final rites will be performed by a dependent or a person entitled to an amount of $15,000 in funeral expenses.
What are the Eligibility Requirements for ESIC?
A person must meet the following eligibility criteria for ESIC registration to benefit from the benefits and stay protected under Esic new registration
- The ESI Act Section 2 (12) specifies the eligibility criteria for people working for non-seasonal companies with more than 10 employees.
- From January 1, 2017, individuals must earn at least $21,000 per month to be eligible for ESIC benefits.
Registering with ESIC requires the following documents
In order to register under ESIC, a set of documents must be furnished. The following documents are needed:
- The entity’s registration certificate (if it is a private limited company).
- A license or certificate of registration under the Act of Shops and Establishments.
- In the case of a partnership firm, the partnership deed must be signed.
- Articles of Association (AoA) and Memorandum of Association (MoA) of the entity/company.
- Employee list for the company.
- Proof of company address, such as utility bills.
- Employees’ PAN cards and the company’s PAN card.
- Employee compensation details.
- The check has been canceled
- Entity/company directors’ list.
- The company/entity’s shareholders.
- Employee attendance details are recorded in the attendance register.
The following entities are eligible to apply for ESIC registration under ESI Act, Section 1 (5):
- The hotel and restaurant industry
- Companies that transport goods by road
- A company that publishes newspapers (but is not a factory)
- Movie theaters
- Institutions of higher education that are private
- Medical institutions that are privately owned
ESIC Registration: When is it required?
The company can apply for ESIC registration when it has at least 10 employees. An employee whose salary is less than*21,000 per month is only required to contribute about 1.75 percent of their salary to the ESIC scheme, while the employer contributes 4.75%. This makes a total of 6.5% contribution to ESIC. From the date the ESI Act becomes applicable to the company or entity, the company can apply for ESIC registration in less than 15 days.