REGISTRATION OF EMPLOYEES



>> What is Registration of an Insured Person? 

Registration is the process of obtaining and recording information about the entry of an employee into insurable employment, for the purpose of his identification under the Act. 


>> What is Registration of an Insured Person? 

The benefits provided under the Act are related to the contribution paid by the employer on behalf of the insured person. Therefore, to identify each insured person, both for proper recording of the contributions received as also for honoring his claims for benefits, registration of an insured person is necessary 


>> How are the employees registered under the Scheme? 

At the time of joining the insurable employment, an employee is required to fill in a Declaration Form (Form-I) and submit a family photo in duplicate to the employer, which is to be submitted to the ESI Branch Office by his employer. The employee is then allotted an insurance number for the purpose of his identification under the scheme and issued a temporary identity card for availing medical benefit for self and family for a period of three months. Thereafter, he is provided with a permanent photo identity card. A. person once registered need not register again in case of change of employment. The same registration can be transferred from one place to the other. Now the ESIC is going online'. Smart card name "Pehchan Card" separately for self and family with biometric details are issued, which is valid in any ESI Hospital/ dispensary throughout the country for availing the medical benefits. The employee can also draw his cash benefits from any of the ESI Branch Office throughout the country. 


>> What is an identity card? 

On registration under the scheme, the employee is termed as insured person. He is provided with a 'temporary identification certificate', which is valid for a period of 3 months, but may be extended if necessary till a permanent family photo identity card with family particulars is issued. The identity card serves as a means of identification both for availing medical benefit at the dispensary/hospital and availing cash benefits at the ESI branch Office. The identity card should be signed/ thumb impression affixed by the insured person. Any changes in his residence/ dispensary/ employment are carried out by the Branch Office Manager in the identity card. Now the smart cards (Pehchan) are being issued to the insured person for drawing cash benefits from any ESI Branch Office of his choice and convenience. 





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APPLICABILITY OF THE ACT & SCHEME:

 Is extended in area-wise to factories using power and employing 10 or more persons and to non-power using manufacturing units and establish-ments employing 20 or more person upto Rs.15,000/- per month w.e.f. 01.04.10. It has also been extend-ed upon shops, hotels, restaurants, roads motor transport undertakings, equip-ment maintenance staff in the hospitals.

COVERAGE OF EMPLOYEES:

 Drawing wages Upto Rs.15,000/- per month Engaged either directly or thru’ contractor

RATE OF CONTRIBUTION OF THE WAGES:

 Employers’ 4.75%

 Employees’ 1.75%

MANNER AND TIME LIMIT FOR MAKING PAYMENT OF CONTRIBUTION:

 The total amount of contribution (employee’s share and employer’s share) is to be deposited with the authorized bank through a challan in the prescribed form in quadruplicate on ore before 21st of month following the calendar month in which the wages fall due.

BENEFITS TO THE EMPLOYEES UNDER THE ACT:

 Medical Benefit
 Sickness Benefit(SB)
 Maternity Benefit(MB)
 Disablement Benefit
 Dependants’ Benefit(DB)
 Funeral Expenses

 In addition, the scheme also provides some other need based benefits to insured workers.

WAGES FOR ESI CONTRIBUTIONS:

 Registers/files to be maintained by the employers

CONTRIBUTION PERIOD:

 If the person joined insurance employment for the first time, say on 5th January, his first contribution period will be from 5th January to 31st March and his corresponding first benefit will be from 5th October to 31st December.

TO BE DEEMED AS WAGES:

• Basic pay
• Dearness allowance
• House rent allowance
• City compensatory allowance
• Overtime wages (but not to be taken into account for determining the coverage of an employee)
• Payment for day of rest
• Production incentive
• Bonus other than statutory bonus
• Night shift allowance
• Heat, Gas & Dust allowance
• Payment for unsubstituted holidays
• Meal/food allowance
• Suspension allowance
• Lay off compensation
• Children education allowance (not being reimbursement for actual tuition fee)

NOT TO BE DEEMED AS WAGES:

• Contribution paid by kthe employer to any pension/provident fund or under ESI Act.
• Sum paid to defray special expenses entailed by the nature of employment – Daily allowance paid for the period spent on tour.
• Gratuity payable on discharge.
• Pay in lieu of notice of retrenchment compensation
• Benefits paid under the ESI Scheme.
• Encashment of leave
• Payment of Inam which does not form part of the terms of employment.
• Washing allowance for livery
• Conveyance Amount towards reimbursement for duty related journey

PENALTIES :

 Different punishment have been prescribed for different types of offences in terms of Section 85: (I) (six months imprisonment and fine Rs.5000), (ii) (one year imprisonment and fine), and 85-A: (five years imprisonment and not less to 2 years) and 85-C (2) of the ESI Act, which are self explanatory. Besides these provisions, action also can be taken under section 406 of the IPC in cases where an employer deducts contributions from the wages of his employees but does not pay the same to the corporation which amounts to criminal breach of trust.

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