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ESI Act & ESIC — Set 5

Labour Laws · ESI अधिनियम और ESIC · Questions 4150 of 140

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1

Under the ESI Act, which section deals with registration of factories and establishments?

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Correct Answer: B. Section 7

Under Section 2A of the ESI Act, every factory or establishment to which the Act applies shall be registered by the employer with the appropriate regional office of ESIC. Under Section 7, the ESIC may appoint inspectors for the purpose of investigating and prosecuting contraventions. Registration ensures that employers are tracked and contributions are collected properly.

2

Under the ESI Act, contributions not paid on time attract interest at the rate of:

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Correct Answer: C. 12% per annum

Under the ESI Act, if an employer fails to pay contributions when due, they are liable to pay simple interest at 12% per annum on the amount of contributions outstanding from the date on which the contributions became due. Additionally, a penalty up to 25% of the arrears may be imposed. Criminal prosecution can also follow in case of willful defaults.

3

Under the ESI Act, which Section provides for the benefit period?

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Correct Answer: B. Section 25

Under Section 25 of the ESI Act, the benefit period is defined as the period for which sickness, maternity, or other cash benefits are payable to an insured person. The benefit period corresponds to the contribution period with a lag of approximately two months. For example, the benefit period of July to December corresponds to contributions paid from April to September of that year.

4

Under the ESI Act, the Employees' State Insurance Corporation is a:

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Correct Answer: B. Statutory body

The Employees' State Insurance Corporation (ESIC) is a statutory body established under the ESI Act, 1948. It was set up to administer the ESI scheme throughout India. The Corporation has a tripartite constitution with representatives from government, employers, and employees. It manages ESIC hospitals, dispensaries, and a large workforce of medical and administrative personnel.

5

Under the ESI Act, the enhanced sickness benefit for sterilization is paid for how many days?

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Correct Answer: B. 14 days

Under the ESI Act, Enhanced Sickness Benefit (ESBB) is paid to insured persons who undergo sterilization operations. For male sterilization (vasectomy), the benefit is paid for 7 days, and for female sterilization (tubectomy), it is paid for 14 days. The benefit is paid at 100% of the standard sickness benefit rate. This provision encourages family planning among insured workers.

6

Under the ESI Act, permanent partial disablement benefit is calculated based on:

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Correct Answer: B. Degree of loss of earning capacity

Under the ESI Act, Permanent Partial Disablement Benefit is paid based on the percentage of loss of earning capacity resulting from the employment injury. The Medical Board assesses the degree of permanent disablement. The benefit is calculated as a percentage of the full Permanent Disablement Benefit corresponding to the assessed degree of disablement. This system ensures proportionate compensation.

7

Under the ESI Act, how is the wage ceiling for coverage determined?

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Correct Answer: C. Notified by Central Government periodically

Under the ESI Act, the wage ceiling for coverage of employees is determined by the Central Government through notifications. The current ceiling is Rs.21,000 per month, which was last revised in 2017. Persons earning above this ceiling are not required to be covered under ESI. The Central Government revises the ceiling periodically to account for inflation and wage increases.

8

Under the ESI Act, the benefit period for July to December corresponds to contributions paid in:

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Correct Answer: C. April to September of the same year

Under the ESI Act, the benefit period follows the contribution period with a lag of about two months. The benefit period from July 1 to December 31 corresponds to contributions paid during April 1 to September 30 (the first contribution period). The benefit period from January 1 to June 30 corresponds to contributions paid from October 1 to March 31. This lag allows ESIC to verify contributions before paying benefits.

9

What is the significance of Insurance in Indian labour law?

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Correct Answer: C. Worker protection

The correct answer is Worker protection. Insurance 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.

10

Under the ESI Act, what is the minimum period of sick leave before sickness benefit becomes payable?

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Correct Answer: B. 3 days

Under the ESI Act, the sickness benefit is payable after a waiting period of three consecutive days of sickness, excluding the day of commencement of sickness. This means the benefit starts from the fourth day of sickness. The maximum period is 91 days in any two consecutive benefit periods. This waiting period prevents abuse of the scheme for very short minor illnesses.