[23rd
August, 1989] [Repealed
by Act 23 of 2016] An Act further to amend the
Employees' State Insurance Act, 1948 Be it enacted by Parliament
in the Fortieth Year of the Republic of India as follows:- Statement of Objects and
Reasons.-The Employees' State Insurance Act, 1948 provides for grant of cash
benefits to the employees in the recognised contingencies of sickness maternity
and employment injury. It also provides for medical benefit, in kind, to the
employees and their families. The Act is at present applicable to non-seasonal
factories and certain other establishments. The provisions of the Act are being
extended, area-wise, in a phased manner. As on 31-12-1988, the Act covered
about 61.68 lakhs employees in 580 industrial centres in the country. The total
number of beneficiaries including family members for medical care are about
2.73 crores. 2. The Employees' State
Insurance Corporation had set up a Sub-Committee in 1975 to make an indepth
study of the various provisions of the Act. This Committee had submitted its
report to the Corporation in 1978, Another Committee was set up by the Ministry
of Labour in 1981 to review the working of the Employees' State Insurance
Scheme. This Committee had submitted its report in 1982. The Corporation had
considered the reports of both the Committees and broadly endorsed their
recommendations. The two committees together had made a number of
recommendations involving amendments of the Act. The Corporation had also, from
time to time made certain recommendations for amendments of the Act. 3. Based on the above
recommendations, it is proposed to carry out certain amendments in the Act.
Some of the more important amendments are- (i)
Under the existing provisions, the Act is in
the first instance, applicable to the factories. The Act can be extended to an
establishment only after giving six months notice to that effect. This creates
difficulties in implementing the act in the areas where there are very few
factories. It is, therefore, now proposed to make the Act applicable
simultaneously to factories and other establishments, where the Act is
applicable in a State to such factories and other establishments in any other
parts of the State. (ii)
It is proposed to include children up to the
age of 21 years and infirm children without any age restriction in the
definition of family so as to make them eligible for medical benefit under the
Act. (iii)
The number of representatives of the
organisations of employers and employees on the Corporation is being raised
from five each to ten each so as to provide greater representation to the
employers and the employees on the Corporation. (iv)
At present, the wage ceiling for coverage,
rates of contribution, period and conditions of grant of benefits and wage
limit for exemption from payment of employees' share of contribution are
governed by specific provisions of that Act. Any change in these provisions
require amendment of the Act which usually takes time. It is, therefore,
proposed to provide for specifying all these matters by the Central Government
under the rules. (v)
It is proposed to do away with the
institution of principal Officers of the Corporation which are to be appointed
by the Central Government and to empower the Corporation to make all
appointments except that of the Director General and the Financial Commissioner
who will continue to be appointed by the Central Government. This is because
the other three erstwhile Principal Officers are the career officers from the
Corporation itself. (vi)
At present, the Act provides that the
Government shall specify the methods of recruitment, salaries and allowances
and other conditions of service of officers and the staff of the Corporation.
This has resulted in delay in amending the rules even when these conform to
changes made in the corresponding rules for the Government servants. It is now
proposed to give powers to the Corporation to frame regulations in respect of
these matters, subject to the condition that the regulations framed by them
would be the same as applicable to the Government servants drawing
corresponding scales of pay and if any deviation is proposed to be made, they
would have to seek the approval of the Central Government. (vii)
A provision is being made for setting up of
an independent machinery for recovery of arrears of the Employees' State
Insurance contributions, etc., as the process of recovery through State
machinery has caused a lot of delay. (viii)
It is proposed to make suitable provisions
for continuance of medical benefit to insured persons who have to leave the
insurable employment due to employment injury and retired insured persons
subject to payment of contribution. (ix)
With a view to curb the misuse of cash
benefits, it is proposed to make a suitable provision disentitling the insured
person from sickness and disablement benefits for any day for which he receives
any wages or for any day on which he remains on strike. (x)
To put a cub on unnecessary litigation by the
employers, it is proposed to provide that no application from an employer
disputing the claim of the Corporation for payment of contribution or other
dues shall be entertained by Employees' Insurance Court unless the employer
deposits fifty per cent of the amount claimed to the Court. (xi)
The existing penal provisions are being made
more stringent. (xii)
It is proposed to make a suitable provision
for withdrawl of the benefit provisions from any factory or establishment, if
it is found that the benefits are being misused. (1)
This Act may be called the Employees' State
Insurance (Amendment) Act, 1989. (2)
It shall come into force on such date[2]
or dates as the Central Government may, by notification in the Official
Gazette, appoint and different dates may be appointed for different provisions
of this Act and for different States or for different parts thereof and any
reference in any such provision to the commencement of this Act shall be
construed in relation to any State or part thereof as a reference to the coming
into force of that provision in that State or part thereof. [3][Repealed] [4][Repealed] [5][Repealed] [6][Repealed] [7][Repealed] [8][Repealed] [9][Repealed] After Section 28 of the
principal Act, the following section shall be inserted, namely:- ?28-A. Administrative
expenses.-The types of expenses which may be termed as administrative expenses
and the percentage of the income of the Corporation which may be spent for such
expenses shall be such as may be prescribed by the Central Government and the
Corporation shall keep its administrative expenses within the limit so
prescribed by the Central Government.?. [10][Repealed] [11][Repealed] [12][Repealed] [13][Repealed] [14][Repealed] [15][Repealed] [16][Repealed] [17][Repealed] [18][Repealed] [19][Repealed] [20][Repealed] [21][Repealed] [22][Repealed] [23][Repealed] [24][Repealed] [25][Repealed] [26][Repealed] [27][Repealed] [28][Repealed] [29][Repealed] [30][Repealed] [31][Repealed] [32][Repealed] [33][Repealed] [34][Repealed] [35][Repealed] [36][Repealed] [37][Repealed] [38][Repealed] [39][Repealed] [40][Repealed] [41][Repealed] [42][Repealed] [43][Repealed] [44][Repealed] For Section 99 of the
principal Act, the following section shall be substituted, namely:- ?99. Medical care for the
families of insured persons.-At any time when its funds so permit, the
Corporation may provide or contribute towards the cost of medical care for the
families of insured persons.?. [45][Repealed] [46][Repealed] [1] Act
of Parliament received the assent of the President on 23-8-1989, and was
published in the Gazette of India, Extraordinary, Part II, Section 1, No. 34,
dated 28-8-1989 [2] Sections
2(i) and (iii), 3(iii), (iv)(a), (v), (vi), (vii), (viii) and (ix), 4, 5, 6, 7(iii),
(b) and (c), 8, 10, 11, 12(ii), 15, 17(i), 22, 24, 25, 26, 27, 29, 30, 31,
32(i) and (ii), 33, 34, 36, 37, 38, 39, 40, 41, 42, 43, 44 and 47, came into
force, w.e.f. 20-10-1989 [vide S.O. 842(E), dated 20-10-1989]. Section 7(ii),
came into force, w.e.f. 8-11-1989 [vide S.O. 935(E), dated 8-11-1989]. Sections
2(ii) and 7(iii)(a), came into force, w.e.f. 16-5-1990 [vide S.O. 387(E), dated
16-5-1990] [3] Repealed by Act 30 of 2001, Section 2 and Schedule I. [4] Repealed by Act 30 of 2001, Section 2 and Schedule I. [5] Repealed by Act 30 of 2001, Section 2 and Schedule I. [6] Repealed by Act 30 of 2001, Section 2 and Schedule I. [7] Repealed by Act 30 of 2001, Section 2 and Schedule I. [8] Repealed by Act 30 of 2001, Section 2 and Schedule I. [9] Repealed by Act 30 of 2001, Section 2 and Schedule I. [10] Repealed by Act 30 of 2001, Section 2 and Schedule I. [11] Repealed by Act 30 of 2001, Section 2 and Schedule I [12] Repealed by Act 30 of 2001, Section 2 and Schedule I [13] Repealed by Act 30 of 2001, Section 2 and Schedule I. [14] Repealed by Act 30 of 2001, Section 2 and Schedule I. [15] Repealed by Act 30 of 2001, Section 2 and Schedule I. [16] Repealed by Act 30 of 2001, Section 2 and Schedule I. [17] Repealed by Act 30 of 2001, Section 2 and Schedule I. [18] Repealed by Act 30 of 2001, Section 2 and Schedule I. [19] Repealed by Act 30 of 2001, Section 2 and Schedule I. [20] Repealed by Act 30 of 2001, Section 2 and Schedule I. [21] Repealed by Act 30 of 2001, Section 2 and Schedule I [22] Repealed by Act 30 of 2001, Section 2 and Schedule I. [23] Repealed by Act 30 of 2001, Section 2 and Schedule I. [24] Repealed by Act 30 of 2001, Section 2 and Schedule I. [25] Repealed by Act 30 of 2001, Section 2 and Schedule I [26] Repealed by Act 30 of 2001, Section 2 and Schedule I. [27] Repealed by Act 30 of 2001, Section 2 and Schedule I. [28] Repealed by Act 30 of 2001, Section 2 and Schedule I. [29] Repealed by Act 30 of 2001, Section 2 and Schedule I [30] Repealed by Act 30 of 2001, Section 2 and Schedule I [31] Repealed by Act 30 of 2001, Section 2 and Schedule I. [32] Repealed by Act 30 of 2001, Section 2 and Schedule I [33] Repealed by Act 30 of 2001, Section 2 and Schedule I [34] Repealed by Act 30 of 2001, Section 2 and Schedule I. [35] Repealed by Act 30 of 2001, Section 2 and Schedule I [36] Repealed by Act 30 of 2001, Section 2 and Schedule I. [37] Repealed by Act 30 of 2001, Section 2 and Schedule I. [38] Repealed by Act 30 of 2001, Section 2 and Schedule I [39] Repealed by Act 30 of 2001, Section 2 and Schedule I. [40] Repealed by Act 30 of 2001, Section 2 and Schedule I. [41] Repealed by Act 30 of 2001, Section 2 and Schedule I. [42] Repealed by Act 30 of 2001, Section 2 and Schedule I. [43] Repealed by Act 30 of 2001, Section 2 and Schedule I. [44] Repealed by Act 30 of 2001, Section 2 and Schedule I. [45] Repealed by Act 30 of 2001, Section 2 and Schedule I. [46] Repealed by Act 30 of 2001, Section 2 and Schedule IEmployees' State
Insurance (Amendment) Act, 1989 [Repealed][1]
[Act 29 of 1989]