UPSC Prelims 2012 · Question 55 of 98

UPSC Prelims 2012 question on ESI Act Coverage

Consider the following:

1. Hotels and restaurants

2. Motor transport undertakings

3. Newspaper establishments

4. Private medical institutions

The employees of which of the above can have the ‘Social Security’ coverage under Employees’ State Insurance Scheme?

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Answer: D. 1, 2, 3 and 4

Correct Answer: 1, 2, 3 and 4

All four categories can be covered under the extended scope of the ESI Act, so the correct answer is 1, 2, 3 and 4.

The Employees’ State Insurance scheme provides social security and health insurance benefits to eligible workers.

Though it initially applied mainly to factories, its coverage has been extended to several other establishments.

1. Hotels and restaurants — Correct

Hotels and restaurants can be covered under the ESI scheme when notified and when they meet the employee threshold.

This extension helps provide social security benefits to workers in the service sector.

2. Motor transport undertakings — Correct

Motor transport undertakings are also covered under the extended scope of the ESI Act.

Workers in such establishments can receive medical and social security benefits under the scheme.

3. Newspaper establishments — Correct

Newspaper establishments have also been brought under ESI coverage in many cases.

This ensures protection for eligible employees working outside traditional factory settings.

4. Private medical institutions — Correct

Private medical institutions can also be covered under the ESI scheme where the provisions have been extended by the government.

Many states have extended ESI coverage to private medical and educational institutions.

* The ESI Act was enacted in 1948.

* The scheme is administered by the Employees’ State Insurance Corporation.

* ESIC functions under the Ministry of Labour and Employment.

* It provides benefits related to sickness, maternity, disablement and employment injury.

* The scheme is funded by contributions from both employers and employees.

* Section 1(5) of the ESI Act allows extension of the scheme to other establishments.

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