ESI Act & ESIC — Set 9

Correct Answer: B. ESI Act provisions and Revenue Recovery methods

Under the ESI Act, if an employer fails to pay ESI contributions, ESIC can recover the dues through various methods. These include recovery as arrears of land revenue (Revenue Recovery Act), attachment and sale of property, and prosecution under the Act. ESIC officials have powers to assess and recover dues. The Recovery Officer can issue certificates for recovery.

Correct Answer: B. Investigates and enforces ESI compliance among employers

The correct answer is Investigates and enforces ESI compliance among employers. Social Security Officers (formerly known as Inspectors) under the ESI Act are empowered to inspect establishments, verify compliance with registration and contribution requirements, examine records, and take enforcement action against defaulting employers. They play a key role in expanding coverage and ensuring that workers entitled to ESI benefits are actually registered and covered. This topic is frequently tested in competitive examinations such as RRB NTPC, SSC, and UPSC.

Correct Answer: B. Day-to-day administration of the Corporation

The Standing Committee of the ESIC is a smaller body that assists the Corporation in the administration of ESI affairs. It meets more frequently than the full Corporation and handles day-to-day administrative matters. The Standing Committee has delegated powers from the Corporation. It reviews financial matters, medical services, and enforcement activities.

Correct Answer: B. Treated same as employment injury

Under the ESI Act, occupational diseases are treated at par with employment injuries. If an insured worker contracts an occupational disease arising out of and in the course of insurable employment, the disease is treated as an employment injury. The worker becomes entitled to all benefits available for employment injuries including medical benefit, disablement benefit, and dependants' benefit.

Correct Answer: B. 24 August 1948

The Employees' State Insurance Corporation (ESIC) was established on 24 August 1948, following the enactment of the ESI Act, 1948. However, the scheme was operationalized and first implemented on 24 February 1952 in Delhi and Kanpur. The ESIC has since grown into one of the largest social security organizations in the world with operations across India.

Correct Answer: B. Wages paid to covered employees

Under the ESI Act, contributions are calculated as a percentage of wages paid to covered employees during the contribution period. The employer contributes 3.25% and the employee contributes 0.75% of wages. Wages for ESI purposes include basic pay, dearness allowance, and other regular allowances but exclude HRA, overtime pay above normal hours, and annual bonuses.

Correct Answer: B. Workers earning up to the ceiling must be covered under ESI

Under the ESI Act, the wage ceiling (currently Rs.21,000 per month) determines who must be covered under the ESI scheme. All workers earning wages up to the ceiling in covered establishments must be registered and have contributions paid on their behalf. Workers earning above the ceiling are exempt. This ceiling ensures social security for low and middle income workers in the organised sector.

Correct Answer: B. Provide unemployment allowance to retrenched ESI workers

The Rajiv Gandhi Shramik Kalyan Yojana (RGSKY) was launched in 2005 to provide unemployment allowance to insured workers who become unemployed due to retrenchment, closure of factory, or permanent invalidity following employment injury. The allowance is paid at 50% of the standard benefit rate for a maximum period of two years. Workers must have contributed for at least three years to be eligible.

Correct Answer: B. Ensuring ESI coverage for contractors working on their premises

Under the ESI Act, the principal employer is primarily responsible for ensuring ESI coverage for contract workers employed within their premises. If a contractor fails to deduct and pay ESI contributions for their workers, the principal employer is liable to pay those contributions. The principal employer can then recover these amounts from the contractor. This prevents exploitation of contract workers.

Correct Answer: B. 78 days

Under the ESI Act, to be eligible for sickness benefit, an insured person must have paid or must have had paid on their behalf, contributions for not less than 78 days in the relevant contribution period of six months. If the contribution period has less than 78 days due to a shorter period of employment, the required days are proportionately reduced. The 78-day rule ensures regular employment before claiming sickness benefit.