Commentaries on Employees State Insurance Act, 1948

The new edition of this very popular work has been long overdue. There has been tremendous growth in the case-law during this interregnum besides the many amendments to the Rules and the Regulations framed under this Act. A new case-law and statute law supplement has been added to the book bringing it up-to-date till 2003.

The liberal interpretation given by the Courts has tremendously expanded the scope of this Act to cover many more employees placed in varied situations. Courts have placed great faith in this welfare legislation and held the employer liable even when the employees had ceased to work or were engaged to do some odd job, and therefore not identifiable to avail any benefit of the contribution.

This edition is a must for industrialists, factory owners, labour officers, trade unionists, government, labour practitioners and the judiciary. The book is indispensable for the members of the Bar and the Bench and also to the students and teachers.

• Kerala Law Times:

The utility of the book has increased due to the inclusion of the new amendments and decisions. Up-to-date case laws of Supreme Court and High Courts in India have been included. Every provision in the Act has been lucidly explained and this technical and difficult subject has been presented in a very practical and intelligent manner. This book will provide guidance to all concerned with this subject.

• Labour & Industrial Cases:

The main aim of the author in writing this fourth edition of the book, is to explain the clear-cut position of the law regarding Employees ' State Insurance and to discuss exhaustively the principle deduced under it. The unique feature of this book is that various state rules have been added to it. The book is very useful to all concerned. It is not only a vast studiously interwoven collection covering entire provisions and case-law on Employees ' State Insurance Act but also it is a boon to the members of the Bar and the Bench and even to the students and the teachers. The services rendered by the author to young generation by publication of this book can very well be acknowledged as the signal service rendered in this field.

• Current Indian Statutes:

We recommend this useful commentary to all our readers. It is bound to be very useful to Lawyers, Judges, Workmen, Trade Unions, Labour Law Advisers, the Department and Industrialists. The get up is excellent.

TABLE OF CASES 
 
I. The Employees' State Insurance Act, 1948

Preamble 

CHAPTER I : PRELIMINARY

Short title, extent, commencement and application 
Definitions 
Registration of factories and establishments 

CHAPTER II : CORPORATION, STANDING COMMITTEE AND 
MEDICAL BENEFIT COUNCIL

Establishment of Employees' State Insurance Corporation 
Constitution of Corporation 455
Term of office of members of the Corporation 458
Eligibility for re-nomination or re-election 459
Authentication of orders, decisions, etc 460
Constitution of Standing Committee 460
Term of office of members of Standing Committee 462
Medical Benefit Council 463
Resignation of membership 465
Cessation of membership 466
Disqualification 467
Filling of vacancies 472
Fees and allowances 473
Principal Officers 474
Staff 479
Powers of the Standing Committee 484
Corporation's power to promote measures for health,etc of
insured persons 484
Meetings of Corporation, Standing Committee and Medical
Benefit Council 485
Supersession of the Corporation and Standing Committee 486
Duties of Medical Benefit Council 490
Duties of Director General and the Financial Commissioner 492
Acts of Corporation, etc not invalid by reason of defect in
Constitution, etc. 493
Regional Boards, Local Committees, Regional and Local Medical
Benefit Councils 494

CHAPTER III : FINANCE AND AUDIT

Employees' State Insurance Fund 497
[Omitted ] 498
Purposes for which the Fund may be expended 498
Administrative expenses 501
Holding of property, etc 501
Vesting of the property in the Corporation 503
[Omitted ] 503
Budget estimates 503
Accounts 504
Audit 504
Annual report 505
Budget, audited accounts and the annual report to be placed
before Parliament 505
Valuation of assets and liabilities 506

CHAPTER IV : CONTRIBUTIONS

All employees to be insured 508
Contributions 510
Principal employer to pay contributions in the first instance  516
Recovery of contribution from immediate employer 523
General provisions as to payment of contributions 527
Method of payment of contribution 530
Employers to furnish returns and maintain registers in certain cases 
Inspectors, their functions and duties 536
Determination of contributions in certain cases 544
Recovery of contributions 564
Issue of certificate to the Recovery Officer 567
Recovery Officer to whom certificate is to be forwarded 568
Validity of certificate and amendment thereof 569
Stay of proceedings under certificate and amendment or withdrawal
thereof 570
Other modes of recovery 570
Application of certain provisions of the Income Tax Act 574
Definitions 574

CHAPTER V : BENEFITS

Benefits 576
When person eligible for sickness benefit [Omitted ] 583
When person deemed available for employment [Omitted ] 583
Sickness benefit 583
Maternity benefit 587
Disablement benefit 593
Presumption as to accident arising in course of employment  598
Accidents happening while acting in breach of regulations, etc 604
Accidents happening while travelling in employer's transport 607
Accidents happening while meeting emergency 609
Dependants' benefit 610
Occupational disease 614
Bar against receiving or recovery of compensation or damages under
law 617
Determination of question of disablement 623
References to medical boards and appeals to medical appeal
tribunals and Employees' Insurance Courts 626
Review of decisions by medical board or medical appeal tribunal  
Review of dependants' benefit 634
Medical benefit 644
Scale of medical benefit 647
Provision of medical treatment by State Government 649
Establishment and maintenance of hospitals, etc, by Corporation 
Provision of medical benefit by the Corporation in lieu of
State Government 652
GENERAL
Benefit not assignable or attachable 653
Bar of benefits under other enactments 655
Persons not to commute cash benefits 659
Persons not entitled to receive benefit in certain cases 659
Recipients of sickness or disablement benefit to observe conditions 
Benefits not to be combined 662
Corporation's right to recover damages from employer in certain
cases [Omitted ] 662
Corporation's right to be indemnified in certain cases [Omitted ] 
Corporation's rights where a principal employer fails or 
neglects to pay any
contribution 663
Liability of owner or occupier of factories, etc. for excessive
sickness benefit 665
Repayment of benefit improperly received 668
Benefit payable up to and including day of death 669
Employer not to reduce wages, etc  670
Employer not to dismiss or punish employee during period of
sickness, etc 674

CHAPTER V-A : TRANSITORY PROVISIONS

Employer's special contributions 683
Special tribunals for decision of disputes or questions under this
Chapter where there is no Employees' Insurance Court 684
Benefits under Chapter V to depend upon employees contribution 
Mode of recovery of employer's special contribution 685
Power to call for additional information or return 685
Power to exempt to be exercised by Central Government 
alone in respect of
employer's special contributions 685
Application of certain provisions of this Act to employer's
special contribution 685
[Omitted ] 686
Duration of Chapter V-A 686

CHAPTER VI : ADJUDICATION OF DISPUTE AND CLAIMS

Constitution of Employees' Insurance Court 687
Matters to be decided by Employees' Insurance Court 690
Institution of proceedings, etc  717
Commencement of proceedings 719
Powers of Employees' Insurance Court 735
Appearance by legal practitioners, etc 750
[Omitted ] 750
Reference to High Court 750
Appeal 751
Stay of payment pending appeal 778

CHAPTER VII : PENALTIES

Punishment for false statement 779
Punishment for failure to pay contributions, etc 780
Enhanced punishment in certain cases after previous conviction 
Power to recover damages 792
Power of court to make orders 809
Prosecutions 810
Offences by companies 818

CHAPTER VIII : MISCELLANEOUS

Exemption of a factory or establishment or class of factories or
establishments 828
Exemption of persons or class of persons 829
Corporation to make representation 831
Exemption of factories or establishments belonging to Government or
any local authority 832
Exemption from one or more provisions of the Act 833
Exemptions to be either prospective or retrospective 834
Misuse of benefits 834
Writing off of losses 835
Power of Central Government to give directions 836
Corporation officers and servants to be public servants836
Liability in case of transfer of establishment 835
Contributions etc due to Corporation to have priority over
other debts 838
Delegation of powers 846
Power of Central Government to make rules 849
Power of State Government to make rules 868
Power of Corporation to make regulations 870
Corporation may undertake duties in Part B State [Repealed] 
Medical care for the families of insured persons 876
Power to remove difficulties 877
Repeals and savings 882
SCHEDULE I [Omitted ] 885
SCHEDULE II 885
SCHEDULE III 895

II. Employees' State Insurance (Central) Rules, 1950

CHAPTER I

Short title and extent 902
Definitions 902

CHAPTER II

Election of members of Parliament to the Corporation 903
Election of members of the Standing Committee 903
Restoration to membership 904
Fees and allowances of members 904
Minimum number of meetings 906
Roll of members 906
Notice of meeting and list of business 906
Chairman of the meeting 906
Quorum 906
Disposal of business 907
Proceedings of the meetings 907
Minute-books 907
Powers and duties of the Medical Benefit Council 907

CHAPTER III

Salaries, allowances and conditions of service of the Director General
and Financial Commissioner 908
Powers and duties of the Director General 908
Powers and duties of the Insurance Commissioner [Omitted] 908
Powers and duties of the Medical Commissioner [Omitted] 909
Powers and duties of the Financial Commissioner 909
Creation of posts by the Corporation 909

CHAPTER III-A

Appeals to Medical Appeal Tribunal 909
Appeals to Employees' Insurance Court 909

CHAPTER IV

Bank or Banks for depositing the Fund 910
Procedure for crediting moneys to the Banks 910
Purpose and manner of payment out of the Fund 910
Promotion of measures for the improvement of health and welfare
of insured persons 911
Circumstances in which cheques may be drawn 911
Acquisition of property 911
Disposal of property 911
Investment, transfer or realisation of the Fund 911
Raising and repayment of loans 912
Procedure for execution of contracts 913
Seal 913

CHAPTER V

Preparation and submission of annual budget estimates 914
Administrative Expenses 914
Supplementary estimates 915
Re-appropriation 915
Maintenance of accounts 915
Revenue accounts 916
Auditing of accounts [Omitted ] 916
Production of accounts before the Comptroller and
Auditor General of India 916
Powers of auditors 916
Report of auditors 916
Consideration of reports 916
Authentication of annual accounts and reports 917
Cost of audit 917
Publication of accounts [Omitted] 917
Impropriety or irregularity in accounts 917
Disallowance of expenditure incurred and surcharge for loss
or deficiency 918
Recovery of amounts certified to be due 918

CHAPTER VI

Establishment of Provident Fund 918
Administration of the Provident Fund 919
Framing of Provident Fund Regulations  
Wage limit for coverage of employee under the Act 919
Rates of contribution 919
Exemption from payment of employee's contribution 919
Writing off of losses 919
Daily rate of benefit 920
Sickness benefit 920
Maternity benefits 921
Disablement benefits 922
Dependants' benefits 923
Funeral expenses 924
Medical benefits to insured person who ceases to be in an
insurable employment on account of permanent disablement 924
Medical benefits to retired insured persons 924
Bar on grant of cash benefits 925
FORMS 925

III. Employees' State Insurance (General) Regulations, 1950

CHAPTER I

Short title and extent 927
Definitions 927
The manner in which the Corporation may exercise its powers 928
Exercise of powers by an office 928
Contribution and Benefit Periods 929
[Omitted ] 929
Meetings of the Corporation, the Standing Committee and the
Medical Benefit Council 929
Decision by majority 929
Mode of exercising vote 929
Matters to be brought before the Corporation 929
Regional Boards 930
Local committees 933

CHAPTER II : COLLECTION OF CONTRIBUTIONS, ETC. 

Registration of Factories or Establishments 935
Declaration by persons in employment on appointed day 935
Declaration by persons engaged after the appointed day 936
[Omitted ] 936
Declaration Form to be sent to appropriate office 936
Allotment of Insurance Number 936
Registration of Families 936
Changes in Family 937
The Corporation to receive assistance from employers 937
Identity Cards 937
Issue of a Certificate of Employment 937
Issue of Permanent Acceptance Card 937
Loss of Identity Card 937
[Omitted ] 937
[Omitted ] 937
[Omitted ] 938
[Omitted ] 938
[Omitted ] 938
[Omitted ] 938
Refund for contribution stamps [Omitted ] 938
Return of contributions to be sent to appropriate office 938
Issue of Certificate of Contributions 938
[Omitted ] 938
Payment of Contribution 938
[Omitted ] 938
Time for payment of contribution 938
Interest on contribution due, but not paid in time 939
Recovery of interest 939
Damages or contributions or any other amount due, but not
paid in time 939
Register of employees 940
Other modes of payments of contribution 940
[Omitted ] 940
[Omitted ] 940
Employment for part of a wage period 940
[Omitted ] 940
Scheme by joint employers 940
Reckoning of wages of employee employed by two or 
more employers
in the same wage period 941
Refund of contribution erroneously paid 941
[Omitted ] 941
[Omitted ] 941
[Omitted ] 942

CHAPTER III : BENEFITS

Claim for benefits 942
When claim becomes due 942
Availability of claim forms 943
Claim on wrong form 943
Evidence in support of claim 943
Defective claim 943
Claim for inappropriate benefit 943
Authority for certifying eligibility of claimants 943
Benefits when payable 943
Abstention verification 944
CERTIFICATION AND CLAIMS FOR SICKNESS AND 
TEMPORARY DISABLEMENT
Evidence of sickness and temporary disablement 944
Persons competent to issue medical certificate 945
Medical certificate 945
Time of granting medical certificate 945
Medical certificate on first examination 945
Final medical certificate 946
Intermediate certificate 946
Final medical certificate before commencing work for wages 946
Intermediate certificate for a longer period 946
[Deleted] 946
Form of claim for sickness or temporary disablement 946
Failure to submit medical certificate 946
DISABLEMENT BENEFIT
Notice of accident 947
Maintenance of accident book 947
Notice otherwise than by an entry in accident book 948
Report of accident by an employer 948
Employer to arrange first aid 948
Employer to furnish further particulars of accident 949
Directions by the Corporation 949
Reference to a Medical Board 949
Report of Medical Board 949
Occupational Disease 950
Constitution of Medical Board/Special Medical Boards 950
Appeal Tribunals 950
Submission of claims for permanent disablement benefit 950
Commutation of permanent disablement benefit 950
DEPENDANTS' BENEFIT
Report of death of insured person by employment injury 952
Disposal of body of an insured person dying by employment injury 
Issue of death certificate 952
Submission of claim for dependants' benefit 952
Notice for dependants' benefit 953
Intimation of decision regarding dependants' benefit 953
Date of accrual of dependants' benefit 953
Submission of claims for periodical payments of dependants' benefit 
Review of dependants' benefit 953
[Deleted] 954
Appointment of another guardian 954
MATERNITY BENEFIT
Notice of pregnancy 954
Claim for maternity benefit commencing before confinement 954
Claim for maternity benefit only after confinement or for miscarriage 
Claim for maternity benefit after the death of an insured woman
leaving behind the child 954
Claim for maternity benefit in case of sickness arising out of
pregnancy, confinement, premature birth of child or miscarriage955
Other evidence in lieu of a certificate 955
Notice of work for remuneration 955
Date of payment of maternity benefit 955
Disqualification for maternity benefit 955
Authority which may issue certificate 955
Obligations of Insurance Medical Officer 956
MEDICAL BENEFIT TO FAMILIES
Medical benefit to families of insured persons 956
FUNERAL EXPENSES
Report of death of insured person 957
Issue of death certificate 957
Other evidence in lieu of a certificate 957
Submission of claim for Funeral Expenses 957

CHAPTER IV : MISCELLANEOUS

Authority for determining benefits 958
Reimbursement of expenses incurred in respect of
Medical treatment 
Discontinuation or reduction of benefits 958
Discharge, etc , of employee under certain conditions 958
DISEASES
Suspension of sickness or temporary disablement benefit 960
Sickness or temporary disablement benefit during strike 960
Relaxation 960
[Deleted ] 960
Certain officers to have powers of inspection 960
Inspection book 960
Medical benefit during disablement 961
Medical benefit after contribution ceases to be payable 961
Medical benefit to insured person who ceases to be in insurable
employment on account of permanent disablement 962
Production of document for medical benefit 962
Further certificates 962
Change of circumstances to be notified 962
Certificate in respect of a person claiming permanent
disablement benefit 962
Declaration by and certificate in respect of a person claiming
dependants' benefit 963
Personal attendance of a person claiming permanent disablement
benefit or dependants' benefit 963
[Omitted ] 963
Submission of additional information by employer or insured person 
FORMS 963

IV. Employees' State Insurance Corporation (General Provident Fund)
Rules, 1995

Short title and commencement 991
Definitions 991
Constitution of the Fund 992
Operation of Fund by the Accounts Officer 992
Investments 992
Conditions of eligibility 992
Nominations 993
Subscriber's Account 994
Conditions and rates of subscriptions 994
Rates of subscription 995
Transfer on deputation to a post under the Government or any
other organisation or deputation out of India 996
Realisation of subscriptions 996
Interest 997
Advance from the Fund 999
Recovery of advance 1000
Wrongful use of advance 1000
Withdrawal from the Fund 1001
Conditions for withdrawal 1003
Conversion of an advance into a withdrawal 1004
Final withdrawal of accumulations in the Fund 1005
Retirement of Subscriber 1006
Procedure on death of subscriber 1006
Deposit-Linked Insurance Scheme 1007
Deposit-Linked Insurance Revised Scheme 1008
Manner of payment of amount in the Fund 1010
Procedure on transfer of a Government servant from one
Department to another 1011
Procedure on transfer 1012
Transfer of amount to the Contributory Provident Fund (India) 
Relaxation of the provisions of the rules in individual cases 
Number of account to be quoted at the time of the payment
of subscription 1012
Annual statement of account to be supplied to subscriber 
Interpretation 1012
SCHEDULE I 1013
SCHEDULE II 1014

Employees' State Insurance Corporation Resolutions

Subject Index 1021