(1) This Act may be called the  Employees’ State Insurance Act, 1948.
(2) It extends to 2[the whole of India 3[***]].
(3) It shall come into force on such date or dates as the Central Government may, by notification in the Official Gazette, appoint, and different dates may be appointed for different  provisions of this Act and 1 [for different States or for different parts thereof].
(4) It shall apply, in the first instance, to all factories (including factories belonging to the 2 [Government]) other than seasonal factories.
3[Provided that nothing contained in this sub-section shall apply to a factory or establishment belonging to or under the control of the Government whose employees are otherwise in receipt of benefits substantially similar or superior to the benefits provided under this Act.].
(5) The appropriate Government may, in consultation with the Corporation and 4 [where the appropriate Government is a State Government, with the approval of the Central 
Government], after giving 5 [one month’s] notice of its intention of so doing by notification in the Official Gazette, extend the provisions of this Act or any of them, to any other establishment, or class of establishments, industrial, commercial, agricultural or otherwise.
6[Provided that where the provisions of this Act have been brought into force in any part of a State, the said provisions shall stand extended to any such establishment or class of establishments within that part if the provisions have already been extended to similar establishment or class of establishments in another part of that State.]
1[(6) A factory or an establishment to which this Act applies shall continue to be governed by this Act notwithstanding that the number of persons employed therein at any time falls below the limit specified by or under this Act or the manufacturing process therein ceases to be carried on with the aid of power.]

In this Act, unless there is anything repugnant in the subject or context, 
—
(1) “ appropriate Government ” means, in respect of establishments under the control of the Central Government or 2[a railway administration] or a major port or a mine or oil-field, the Central Government, and in all other cases, the 3[State] Government ;
4[(2) * * *]
(3) “ 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 ; 
(4) “ contribution ” means the sum of money payable to the Corporation by the principal employer in respect of an employee and includes any amount payable by or on behalf of the employee in accordance with the provisions of this Act ;
5[(5) * * *]
(6) “ Corporation ” means the Employees’ State Insurance Corporation set up under this Act ;
1[(6-A) “ dependant ” means any of the following relatives of a deceased insured person, namely : —
2[(i) a widow, a legitimate or adopted son who has not attained the age of twenty-five years, an unmarried legitimate or adopted daughter ; ]
3[(ia) a widowed mother ;]
(ii) if wholly dependent on the earnings of the insured person at the time of his death, a legitimate or adopted son or daughter who has attained the age of 4[twenty-five] and who is infirm ;
(iii) if wholly or in part dependent on the earnings of the insured person at the time of his death, —
(a) a parent other than a widowed mother,
(b) a minor illegitimate son, an unmarried illegitimate daughter or a daughter legitimate or adopted or illegitimate if married and a minor or if widowed 
and a minor,
(c) a minor brother or an unmarried sister or a widowed sister if a minor,
(d) a widowed daughter-in-law,
(e) a minor child of a pre-deceased son,
(f) a minor child of a pre-deceased daughter where no parent of the child is alive, or
(g) a paternal grand-parent if no parent of the insured person is alive ;]
(7) “ duly appointed ” means appointed in accordance with the provisions of this Act or with the rules or regulations made there-under ;
1[(8) “ employment injury ” means a personal injury to an employee caused by accident or an occupational disease arising out of and in the course of his employment, being an insurable employment, whether the accident occurs or the occupational disease is contracted within or outside the territorial limits of India ;]
(9) “ employee ” means any person employed for wages in or in connection with the work of a factory or establishment to which this Act applies and —
(i) who is directly employed by the principal employer on any work of, or incidental or preliminary to or connected with the work of, the factory or establishment, whether such work is done by the employee in the factory or establishment or elsewhere ; or
(ii) who is employed by or through an immediate employer on the premises of the factory or establishment or under the supervision of the principal employer or his agent on work which is ordinarily part of the work of the factory or establishment or which is preliminary to the work carried on in or incidental to the purpose of the factory or establishment ; or
(iii) whose services are temporarily lent or let on hire to the principal employer by the person with whom the person whose services are so lent or let on hire has 
entered into a contract of service ; 2[and includes any person employed for wages on any work connected with the administration of the factory or 
establishment or any part, department or branch thereof or with the purchase of raw materials for, or the distribution or sale of the products of, the factory or 
establishment ;
1[or any person engaged as an apprentice, not being an apprentice engaged under the Apprentices Act, 1961 (52 of 1961), 2[and includes such person engaged as apprentice whose training period is extended to any length of time]
but does not include] — ]
(a) any member of 3[the Indian] naval, military or air forces ; or 
4[(b) any person so employed whose wages (excluding remuneration for overtime work) exceed 5[such wages as may be prescribed by the Central Government] :
Provided that an employee whose wages (excluding remuneration for overtime work) exceed 5[such wages as may be prescribed by the Central Government] at any time after (and not before) the beginning of the contribution period, shall continue to be an employee until the end of that period ;]
(10) “ exempted employee ” means an employee who is not liable under this Act to pay the employee’s contribution ;
6[(11) “ family ” means all or any of the following relatives of an insured person, namely : —
 (i) a spouse ;
 (ii) a minor legitimate or adopted child dependent upon the insured person ;
(iii) a child who is wholly dependent on the earnings of the insured person and who is —
(a) receiving education, till he or she attains the age of twenty-one years,
(b) an unmarried daughter ;
(iv) a child who is infirm by reason of any physical or mental abnormality or injury and is wholly dependent on the earnings of the insured person, so long as the 
infirmity continues ;
1[(v) dependant parents, whose income from all sources does not exceed such income as may be prescribed by the Central Government ;
(vi) in case the insured person is unmarried and his or her parents are not alive, a minor brother or sister wholly dependant upon the earnings of the insured 
person ;]]
2[(12) “ factory ” means any premises including the precincts thereof whereon ten or more persons are employed or were employed on any day of the preceding twelve months, and in any part of which a manufacturing process is being carried on or is ordinarily so carried on, but does not include a mine subject to the operation of the Mines Act, 1952 (35 of 1952), or a railway running shed ;]
(13) “ immediate employer ” in relation to employees employed by or through him, means a person who has undertaken the execution on the premises of a factory or an establishment to which this Act applies or under the supervision of the principal employer or his agent, of the whole or any part of any work which is ordinarily part of the work of the factory or establishment of the principal employer or is preliminary to the work carried on in, or incidental to the purpose of, any such factory or establishment and includes a person by whom the services of an employee who has entered into a contract of service with him are temporarily lent or let on hire to the 
principal employer 1[and includes a contractor].
2[(13-A) “ insurable employment ” means an employment in a factory or establishment to which this Act applies ;]
(14) “ insured person ” means a person who is or was an employee in respect of whom contributions are or were payable under this Act and who is, by reason thereof, entitled to any of the benefits provided by this Act ;
3[(14A) “ managing agent ” means any person appointed or acting as the representative of another person for the purpose of carrying on such other person’s trade or business, but does not include an individual manager subordinate to an employer ;
4[(14AA) “ manufacturing process ” shall have the meaning assigned to it in the Factories Act, 1948 (63 of 1948) ;]
(14-B) “ mis-carriage ” means expulsion of the contents of a pregnant uterus at any period prior to or during the twenty-sixth week of pregnancy but does not include any miscarriage, the causing of which is punishable under the Indian Penal Code (45 of 1860) ;]
(15) “ occupier ” of the factory shall have the meaning assigned to it in the Factories Act, 5[1948 (63 of 1948)] ;
1[(15A) “ permanent partial disablement ” means such disablement of a permanent nature, as reduces the earning capacity of an employee in every employment which he was capable of undertaking at the time of the accident resulting in the disablement :
Provided that every injury specified in Part II of the Second Schedule shall be deemed to result in permanent partial disablement ;
(15B) “ permanent total disablement ” means such disablement of a permanent nature as incapacitates an employee for all work which he was capable of performing at the time of the accident resulting in such disablement :
Provided that permanent total disablement shall be deemed to result from every injury specified in Part I of the Second Schedule or from any combination of injuries specified in Part II thereof where the aggregate percentage of the loss of earning capacity, as specified in the said Part II against those injuries, amounts to one hundred percent. or more ;]
2[(15C) “ power ” shall have the meaning assigned to it in the Factories Act, 1948 (63 of 1948) ;]
(16) “ prescribed ” means prescribed by rules made under this Act ;
(17) “ principal employer ” means —
(i) in a factory, the owner or occupier of the factory and includes the managing agent of such owner or occupier, the legal representative of a deceased owner or occupier, and where a person has been named as the manager of the factory under 3[the Factories Act, 1948] (63 of 1948), the person so named ;
(ii) in any establishment under the control of any department of any Government in India, the authority appointed by such Government in this behalf or where no authority is so appointed, the head of the department ;
(iii) in any other establishment, any person responsible for the supervision and control of the establishment ;
(18) “ regulation ” means a regulation made by the Corporation ;
(19) “ Schedule ” means a schedule to this Act ;
1[(19A) “ seasonal factory ”, means a factory which is exclusively engaged in one or more of the following manufacturing processes, namely, cotton ginning, cotton or jute pressing, decortication of ground-nuts, the manufacture of coffee, indigo, lac, rubber, sugar (including gur) or tea or any manufacturing process which is incidental to or connected with any of the aforesaid processes and includes a factory which is engaged for a period not exceeding seven months in a year —
(a) in any process of blending, packing or repacking of tea or coffee ; or
(b) in such other manufacturing process as the Central Government may, by notification in the Official Gazette, specify ;]
(20) “ sickness ” means a condition which requires medical treatment and attendance and necessitates abstention from work on medical grounds ;
(21) “ temporary disablement ” means a condition resulting from an employment injury which requires medical treatment and renders an employee, as a result of such injury temporarily incapable of 2[doing the work which he was doing prior to or at the time of the injury] ;
(22) “ wages ” means all remuneration paid or payable in cash to an employee, if the terms of the contract of employment, express or implied, were fulfilled and includes 1[any payment to an employee in respect of any period of authorised leave, lock-out, strike which is not illegal or layoff and] other additional remuneration, if any, 2[paid at intervals not exceeding two months], but 
does not include —
(a) any contribution paid by the employer to any pension fund or provident fund, or under this Act ;
(b) any travelling allowance or the value of any travelling concession ;
(c) any sum paid to the person employed to defray special expenses entailed on him by the nature of his employment ; or
(d) any gratuity payable on discharge ;
3[(23) “ wage period ” in relation to an employee means the period in respect of which wages are ordinarily payable to him whether in terms of the contract of employment, express orimplied or otherwise;]
4[(24) all other words and expressions used but not defined in this Act and defined in the Industrial Disputes Act, 1947 (14 of 1947), shall have the meanings respectively assigned to them in that Act.]

Every factory or establishment to which this Act applies shall be registered within such time and in such manner as may be specified in the regulations made in this behalf.]

(1) With effect from such date as the Central Government may, by notification in the Official Gazette, appoint in this behalf, there shall be established for the administration of the scheme of Employees’ State Insurance in accordance with the provisions of this Act a Corporation to be known as the Employees’ State Insurance Corporation.
(2) The Corporation shall be a body corporate by the name of Employees’ State Insurance Corporation having perpetual succession and a common seal and shall by the said name sue and be sued.

The Corporation shall consist of the following members, namely : —
1[(a) a Chairman to be 2[appointed] by the Central Government ;
(b) a Vice-Chairman to be 2[appointed] by the Central Government ;]
(c) not more than five persons to be 2[appointed] by the Central Government 3[* * *] ;
(d) one person each representing each of the 1[2[States] in which this Act is in force] to be 3[appointed] by the State Government concerned ;
(e) one person to be 3[appointed] by the Central Government to represent the 4[Union territories] ;
(f) 5[ten] persons representing employers to be 3[appointed] by the Central Government in consultation with such organisations of employers as may be recognised for the purpose by the Central Government ;
(g) 5[ten] persons representing employees to be 3[appointed] by the Central Government in consultation with such organisations of employees as may be recognised for the purpose by the Central Government ;
(h) two persons representing the medical profession to be 3[appointed] by the Central Government in consultation with such organisations of medical practitioners as may be recognised for the purpose by the Central Govern-ment ; 6[***]
7[(i) three members of Parliament of whom two shall be members of the House of the People (Lok Sabha) and one shall be a member of the Council of States (Rajya Sabha) elected respectively by the members of the House of the People and the members of the Council of States ; and
(j) the Director-General of the Corporation, ex-officio.]

(1) Save as otherwise expressly provided in this Act, the term of office of members of the Corporation, other than 1[the members referred to in clauses (a), (b), (c), (d) and (e) of section 4 and the ex-officio member,] shall be four years commencing from the date on which their 2[appointment] or election is notified.
Provided that a member of the Corporation shall notwithstanding the expiry of the said period of four years, continue to hold office until the 2[appointment] or election of his successor is notified.
(2) The member of the Corporation referred to in clauses 3[(a), (b), (c), (d) and (e)] of section 4 shall hold office during the pleasure of the Government 4[appointing] them.

An outgoing member of the Corporation, the Standing Committee, or the Medical Benefit Council shall be eligible for 5 [reappointment] or re-election as the case may be

All orders and decisions of the Corporation shall be authenticated by the signature of the Director-General of the Corporation and all other instruments issued by the Corporation shall be authenticated by the signature of the DirectorGeneral or such other officer of the Corporation as may be authorised by him.]

A Standing Committee of the Corporation shall be constituted from among its members, consisting of —
(a) a Chairman 1[appointed] by the Central Government ;
(b) three members of the Corporation, 2[1[appointed] by the Central Government] ;
3[(bb) three members of the Corporation representing such three State Governments thereon as the Central Government may, by notification in the Official Gazette, 
specify from time to time ;]
 (c) 4[eight] members elected by the Corporation as follows : —
 (i) 5[* * *]
 (ii) 6[three] members from among the members of the Corporation representing employers ;
(iii) 6[three] members from among the members of the Corporation representing employees ;
(iv) one member from among the members of the Corporation representing the medical profession ; and
(v) one member from among the members of the Corporation elected by 1[Parliament] ;
2[(d) the Director-General of the Corporation, ex-officio.]

(1) Save as otherwise expressly provided in this Act, the term of office of a member of the Standing Committee, other than a member referred to in clause (a) or 3
[clause (b) or clause (bb)] of section 8, shall be two years from the date on which his election is notified :
Provided that a member of the Standing Committee shall, notwithstanding the expiry of the said period of two years, continue to hold office until the election of his successor is notified :
Provided further that a member of the Standing Committee shall cease to hold office when he ceases to be a member of the Corporation.
(2) A member of the Standing Committee referred to in clause (a) or 3[clause (b) 
or clause (bb)] of section 8 shall hold office during the pleasure of the Central Government.

— (1) The Central Government shall constitute a Medical Benefit Council consisting of —
4[(a) the Director General, the Employees’ State Insurance Corporation, ex-officio as Chairman ;
(b) the Director General, Health Services, ex-officio as Co-Chairman ; ]
(c) the Medical Commissioner of the Corporation, ex-officio ;
(d) one member each representing each of the 1[States (other than Union territories)] in which this Act is in force to be 2[appointed] by the State Government concerned ;
(e) three members representing employers to be 2[appointed] by the Central Government in consultation with such organisations of employers as may be recognised for the purpose by the Central Government ;
(f) three members representing employees to be 2[appointed] by the Central Government in consul-tation with such organisations of employees as may be recognised for the purpose by the Central Govern-ment ; and
(g) three members, of whom not less than one shall be a woman, representing the medical profession, to be 2[appointed] by the Central Government in consultation with such organisations of medical practitioners as may be recognised for the purpose by the Central Government.
(2) Save as otherwise expressly provided in this Act, the term of office of a member of the Medical Benefit Council, other than a member referred to in any of the clauses (a) to (d) of sub-section (1), shall be four years from the date on which his 3[appointment] is notified:
4[Provided that a member of the Medical Benefit Council shall, notwithstanding the expiry of the said period of four years continue to hold office until the 3[appointment] of his successor is notified.]
(3) A member of the Medical Benefit Council referred to in clauses (b) and (d) of subsection (1) shall hold office during the pleasure of the Government 1[appointing] him.

A member of the Corporation, the Standing Committee or the Medical Benefit Council may resign his office by notice in writing to the Central Government and his seat shall fall vacant on the acceptance of the resignation by that Government.

2[(1)] A member of the Corporation, the Standing Committee or the Medical Benefit Council shall cease to be a member of that body if he fails to attend three consecutive meetings thereof :
Provided that the Corporation, the Standing Committee or the Medical Benefit Council, as the case may be, may, subject to rules made by the Central Government in this behalf, restore him to membership.
3[(2) Where in the opinion of the Central Government any person 4[appointed] or elected to represent employers, employees or the medical profession on (sic.) the Corporation, the Standing Committee or the Medical Benefit Council, as the case may be, has ceased to represent such employers, employees or the medical profession, the Central Government may, by notification in the Official Gazette, declare that with effect from such date as may be specified therein such person shall cease to be a member of the Corporation, the Standing Committee or the Medical Benefit Council, as the case may be.]
5[(3) A person referred to in clause (i) of section 4 shall cease to be a member of the Corporation when he ceases to be a Member of Parliament.

 A person shall be disqualified for being chosen as or for being a member of the Corporation, the Standing Committee or the Medical Benefit Council —
(a) if he is declared to be of unsound mind by a competent Court ; or
(b) if he is an undischarged insolvent ; or
(c) if he has directly or indirectly by himself or by his partner any interest in subsisting contract with, or any work being done for, the Corporation except as a medical practitioner or as a share-holder (not being a Director) of a com-pany ; or 
(d) if before or after the commencement of this Act, he has been convicted of an offence involving moral turpitude.

(1) Vacancies in the office of 1[appointed] or elected members of the Corporation, the Standing Committee Medical Benefit Council shall be filled by 2[appointment] or election, as the case may be.
(2) A member of the Corporation, the Standing Committee or the Medical Benefit Council 1[appointed] or elected to fill a casual vacancy shall hold office only so long as the member in whose place he is 1[appointed] or elected would have been entitled to hold office if the vacancy had not occurred.

Members of the Corporation, the Standing Committee and the Medical Benefit Council shall receive such fees and allowances as may from time to time be prescribed by the Central Government.

3[(1) The Central Government may, in consultation with the Corporation, appoint a Director-General and a Financial Commissioner.]
(2) The Director-General shall be the Chief Executive Officer of the Corporation.
(3) 1[The Director-General and the Financial Commissioner] shall be whole-time officers of the Corporation and shall not undertake any work unconnected with their office without the sanction of the Central Government 2[and of the Corporation].
(4) 3[The Director-General or the Financial Commissioner] shall hold office for such period, not exceeding five years, as may be specified in the order appointing him. An outgoing 4[Director-General or Financial Commissioner] shall be eligible for re-appointment if he is otherwise qualified.
(5) 5[The Director-General or the Financial Commissioner] shall receive such salary and allowances as may be prescribed by the Central Government.
(6) A person shall be disqualified from being appointed as or for being 6[the DirectorGeneral or the Financial Commissioner] if he is subject to any of the disqualifications specified in section 13.
(7) The Central Government may at any time remove 6[the Director-General or the Financial Commissioner] from office and shall do so if such removal is recommended by a 
resolution of the Corporation passed at a special meeting called for the purpose and supported by the votes of not less than two-third is of the total strength of the Corporation

(1) The Corporation may employ such other staff of officers and servants as may be necessary for the efficient transaction of its business provided that the sanction of the Central Government shall be obtained for the creation of any post 1[the maximum monthly salary of which 2[exceeds such salary as may be prescribed by the Central Government]].
3[(2) (a) The method of recruitment, salary and allowances, discipline and other conditions of service of the members of the staff of the Corporation shall be such as may be specified in the regulations made by the Corporation in accordance with the rules and orders applicable to the officers and employees of the Central Government drawing corresponding scales of pay :
Provided that where the Corporation is of the opinion that it is necessary to make a departure from the said rules or orders in respect of any of the matters foresaid, it shall obtain the prior approval of the Central Government.
4[Provided further that this sub-section shall not apply to appointment of consultants and specialists in various fields appointed on contract basis.]
(b) In determining the corresponding scales of pay of the members of the staff under clause (a), the Corporation shall have regard to the educational qualifications, method of recruitment, duties and responsibilities of such officers and employees under the Central Government and in case of any doubt, the Corporation shall refer the matter to the Central Government whose decision thereon shall be final.]
(3) Every appointment to 1[posts 2[(other than medical posts)] corresponding to 3[group A and group B] posts under the Central Government] shall be made in consultation with the Union Public Service Commission :
Provided that this sub-section shall not apply to an officiating or temporary appointment for 4[a period] not exceeding one year.
5[Provided further that any such officiating or temporary appointment shall not confer any claim for regular appointment and the services rendered in that capacity shall not count towards seniority or minimum qualifying service specified in the regulations for promotion to next higher grade.]
6[(4) If any question arises whether a post corresponds to a 3[group A and group B] post under the Central Government, the question shall be referred to that Government whose decision thereon shall be final.]

(1) Subject to the general superintendence and control of the Corporation, the Standing Committee shall administer the affairs of the Corporation and may exercise any of the powers and perform any of the functions of the Corporation.
(2) The Standing Committee shall submit for the consideration and decision of the Corporation all such cases and matters as may be specified in the regulations made in this behalf.
(3) The Standing Committee may, in its discretion, submit any other case or matter for the decision of the Corporation.

The Corporation may, in addition to the scheme of benefits specified in this Act, promote measures for the improvement of the health and welfare of insured persons and for the rehabilitation and reemployment of insured persons who have been disabled or injured and may incur in respect of such measures expenditure from the funds of the Corporation within such limits as may be prescribed by the Central Government.

Subject to any rules made under this Act, the Corporation, the Standing Committee and the Medical Benefit Council shall meet at such times and places and shall observe such rules of procedure in regard to transaction of business at their meetings as may be specified in the regulations made in this behalf.