ESIC Registration

ESIC Registration

Employee State Insurance Corporation is the full form for ESIC. Ministry of Labour and employment and Government of India has created this autonomous body by law.

This is the scheme initiated to benefit Indian workers who has a maximum salary of rupees 15,000 or less. Under this scheme, workers are provided with some benefits including medical benefits, monetary benefits and other benefits. Any organization having number of employees more than 10 or in some states 20 have to register itself under this scheme.

Documents required for Registration

• Registration certificate of the business entity obtained by it under the following:
  • Shops and establishment Act
  • Factories Act
• In case of company, certificate of registration is required while in case of partnership, partnership deed is required.
• Memorandum and article or association of the company
• List of all the employees working in the business entity.
• PAN card of the business entity along with that of the employees working in the organization.
• The details of the compensation/ salary/ wages paid to the employees.
• A cancelled cheque of the company's bank account.
• Directors list of the company.
• Shareholder's list of the company
• Record of the attendance of the employees.

Benefits of registering under ESIC

Some of the benefits under this scheme are enumerated below:

• 1. Sickness benefits to employee in terms of salary. This goes up to 70% of the monthly salary paid. And if in case of any kind of illness certified by the doctor, this benefit extends up to 91 days.
• 2. Employees and his/ her family are benefitted with medical facilities under this scheme.
• 3. Maternity benefits to the female employees those who are pregnant.
• 4. If in case, any employee may die during his/ her work hours then the 90% of the salary is paid to his/ her family or dependents every month by the employer.
• 5. The above scenario is also applicable in case of any disablement of the employee.
• 6. Any kind of funeral expenses are given to the employee.
• 7. Old age medical expenses are given to the employee as the benefit under this scheme.

Procedure to be followed

The procedure that is to be followed after the verification of the form-1 is completed is as given below:

• 1. A 17 digit unique code number is issued by the Government once the verification of the form-1 is completed.
• 2. The employees have to provide the employer with the form containing the details of their family members along with their photographs. These employees in return will get an ESI card for the registration process to be completed.
• 3. Any change that might happen to the company or to its employees will be informed to the ESIC.

Entities that are covered under this scheme

Government of India has instructed under section 1(5) of ESI act to cover the following entities under this act:

• Shops
• Restaurants
• Hotels
• Cinemas
• Road motor transport establishments
• Newspaper establishments those who are not covered under the factory act
• Private educational institutions
• newspaper establishments,
• establishments engaged in Insurance Business,
• Non Banking Financial Companies,
• Port Trust,
• Airport Authorities and Warehousing establishments