ESI Act & ESIC — Set 7

Correct Answer: B. Determination of contributions by ESIC in case of employer's failure

Section 45A of the ESI Act empowers the ESIC to determine the amount of contribution payable in cases where an employer has failed to maintain records or pay contributions as required. ESIC can make an assessment based on available evidence, the nature of work, and number of employees. This prevents employers from evading contributions by not maintaining proper records.

Correct Answer: B. Employment in a factory or other establishment to which the Act applies

Under Section 2(12) of the ESI Act, 'insurable employment' means employment in a factory or establishment to which the Act applies. Once an establishment is notified, all employees earning up to the wage ceiling in that establishment are in insurable employment. This is the foundational concept that determines who must be covered under the ESI scheme.

Correct Answer: B. Monthly pension equal to 90% of wages for life

Under the ESI Act, if an insured worker suffers permanent total disablement (100% loss of earning capacity) due to an employment injury, they are entitled to a monthly pension equal to 90% of their standard wages for the rest of their life. The Medical Board certifies the degree of disablement. This lifelong pension provides economic security for totally disabled workers.

Correct Answer: B. General administration of medical benefit

Under Section 10 of the ESI Act, the Medical Benefit Council is constituted to advise the Corporation and appropriate governments on matters relating to the administration of medical benefit. It has members representing the medical profession, employers, employees, and government. The Council helps ensure that medical benefit standards are maintained and improved across ESIC facilities.

Correct Answer: B. No, only wage employees are covered

The ESI Act currently covers only employees in insurable employment (factories and specified establishments). Self-employed persons are not covered under the mandatory ESI scheme. However, the Code on Social Security 2020 has provisions to extend social security to self-employed and gig workers. The government can notify schemes for unorganized sector workers including self-employed persons.

Correct Answer: D. All of the above including prosecution

Under the ESI Act, a principal employer who fails to pay contributions is liable to: (1) pay arrears with simple interest at 12% per annum, (2) pay a penalty up to 25% of arrears, and (3) face criminal prosecution. The criminal penalty can include imprisonment and fine. The multiple layers of liability ensure that employers comply with contribution obligations and workers receive their benefits.

Correct Answer: B. Parties can represent themselves or be represented by lawyers or authorized persons

In ESI Courts, parties can appear in person or be represented by legal practitioners or other authorized persons. The ESI Court has powers of a civil court and follows civil procedure. However, the proceedings are generally less formal than High Court proceedings. Both employers and employees can be represented in ESI Court disputes about contributions, benefits, and other matters.

Correct Answer: C. Dependants receive medical benefit for a specified period

Under the ESI Act, the dependants of an insured person continue to receive medical benefit for a specified period after the death of the insured person. The dependants are entitled to medical care including outpatient treatment, hospitalization, and medicines at ESIC facilities. This extended coverage helps the family through a difficult period after losing the earning member.

Correct Answer: B. Provide cash relief to insured workers who become unemployed

The Atal Bimit Vyakti Kalyan Yojana was launched by ESIC in 2018 to provide cash relief at 25% of average per day earning directly to the bank account of insured workers who become unemployed due to loss of employment. The scheme provides relief for up to 90 days in a lifetime. It was introduced as a comprehensive unemployment relief scheme for ESI insured workers.

Correct Answer: B. ESIC hospitals and empanelled private hospitals

For super specialty treatments that are not available at ESIC hospitals, beneficiaries are referred to empanelled private hospitals and medical institutions. ESIC has empanelled thousands of hospitals and diagnostic centres across India for this purpose. The costs are borne by ESIC. This system ensures that insured workers have access to advanced medical care when needed.