ESI Act & ESIC — Set 12

Correct Answer: B. In government securities and approved investments

Under the ESI Act, the ESIC is required to invest its funds in prescribed securities, primarily government securities and approved bonds. This conservative investment approach ensures the safety and liquidity of the large ESI fund. The investment income helps supplement contribution income to meet the growing demands of the ESI scheme. The investment policy is set by the ESIC governing body.

Correct Answer: B. One eighth of all expenditure

Under the ESI Act, the Central Government contributes one-eighth of the total expenditure on medical benefit in each state for the first five years after the scheme is implemented in that state. After five years, the Central Government contributes one-eighth of the difference between the average of two years and the expenses in the first year. This shared funding model ensures quality medical services.

Correct Answer: B. State Governments administer and provide medical benefit through their infrastructure

Under Section 58 of the ESI Act, State Governments are responsible for providing medical benefit to insured persons and their dependants in their state. They are required to establish and maintain hospitals, dispensaries, and other institutions necessary for providing this benefit. The Central Government provides partial funding. State Governments and ESIC share responsibility for medical service delivery.

Correct Answer: B. Allopathic, Ayurveda, Siddha, Unani, and Homeopathy

Under the ESI Act, medical benefit includes treatment under various systems of medicine - allopathic, Ayurveda, Siddha, Unani, Yoga and Naturopathy, and Homeopathy (AYUSH). ESIC provides both modern allopathic treatment and traditional Indian medical systems. The comprehensive approach ensures that insured persons can choose their preferred form of treatment.

Correct Answer: B. Labour resulting in birth of a child or miscarriage

Under Section 2(3) of the ESI Act, 'confinement' means labour resulting in the issue of a living child, or labour after twenty-six weeks of pregnancy resulting in the issue of a child whether alive or dead. This definition is relevant for determining maternity benefit eligibility. The term covers both successful deliveries and stillbirths after the specified period of pregnancy.

Correct Answer: B. A day on which the insured person was entitled to wages

For the purpose of calculating sickness benefit under the ESI Act, a 'day' means a day on which the insured person was entitled to wages under the terms of their employment. This definition ensures that only actual working days (and days for which wages are due) are counted. Sundays and holidays may or may not count depending on whether wages are due for those days.

Correct Answer: B. Having made contributions in the relevant contribution period

Under the ESI Act, the right to receive sickness benefit is linked to having made contributions (or having had contributions made on their behalf) for at least 78 days in the relevant contribution period. The contribution record is checked before benefits are paid. This contributory principle ensures that only active contributors receive the benefits, maintaining the scheme's financial sustainability.

Correct Answer: C. Worker protection

The correct answer is Worker protection. Worker Protection is a crucial aspect of Indian labour law designed to protect worker interests and ensure fair practices in employment. This topic is frequently tested in competitive examinations such as RRB NTPC, SSC, and UPSC.

Correct Answer: B. Imprisonment up to 6 months or fine or both

The correct answer is Imprisonment up to 6 months or fine or both. Under the ESI Act, if an employer dismisses, discharges, reduces, or otherwise punishes a worker for claiming or receiving any benefit under the Act, the employer commits an offence punishable with imprisonment up to six months or fine or both. This strong protection prevents retaliation by employers against workers who exercise their legal rights to claim ESI benefits. This topic is frequently tested in competitive examinations such as RRB NTPC, SSC, and UPSC.

Correct Answer: B. Provides annual statistics on coverage, benefits paid, and financial position

The correct answer is Provides annual statistics on coverage, benefits paid, and financial position. The ESIC publishes an Annual Report providing comprehensive statistics on the ESI scheme including number of insured persons and employers, contributions collected, benefits paid under each category, financial position of ESIC, and performance of ESIC hospitals. The Annual Report is an important reference for policy makers, researchers, and competitive exam students to understand the scheme's progress. This topic is frequently tested in competitive examinations such as RRB NTPC, SSC, and UPSC.