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THE EMPLOYEES' STATE INSURANCE ACT, 1948
ACT NO. 34 OF 1948 1*
[19th April, 1948.]
An Act to provide for certain benefits to employees in case of
sickness, maternity and employment injury and to make provision for
certain other matters in relation thereto.
WHEREAS it is expedient to provide for certain benefits to
employees in case of sickness, maternity and employment injury and to
make provision for certain other matters in relation thereto;
It is hereby enacted as follows:--
CHAP
PRELIMINARY
CHAPTER I
PRELIMINARY
1.
Short title, extent, commencement and application.
1. Short title, extent, commencement and application.- (1) This
Act may be called the Employees' State Insurance Act, 1948.
(2) It extends to the whole of India 2***.
(3) It shall come into force on such date or dates3* as the
Central Government may, by notification in the Official Gazette,
appoint, and different dates 3* may be appointed for different
provisions of this Act and 4*[for different States or for different
parts thereof].
(4) It shall apply, in the first instance, to all factories
(including factories belonging to the Government) other than seasonal
factories.
5*[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 6*[where the appropriate Government is a State
Government, with the approval of the Central Government], after giving
six months' 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:
7*[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.];
5*[(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.].
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1. This Act has been extended to Jaunsar Bawar Parganas in the Dehra
Dun District and the areas of South of Kaimpur range in the Mirzapur
District of the State of Uttar Pradesh by Schedule IV of Act 20 of
1954; Pondicherry by Reg. 7 of 1963, s. 3 and Sch. I and Goa, Daman
and Diu by Reg. 11 of 1963, s. 3 and Sch.
2. The words "except the State of Jammu and Kashmir" omitted by Act
51 of 1970, s. 2 and Sch. (w.e.f. 1-9-1971).
3. For dates, see Annexure.
4. Subs. by Act 53 of 1951, s. 2, for "for different States".
5. Ins. by Act 29 of 1989, s. 2 (w.e.f. 20-10-1989).
6. Subs. by Act 53 of 1951, s. 2, for "with the approval of the
Central Government".
7. Ins. by Act 29 of 1989, s. 2 (w.e.f. 16-5-1990).
224
2.
Definations.
2. Definations.- 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 1*[a railway administration] or a major
port or a mine or oilfield, the Central Government, and
in all other cases, the State Government;
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;
4* * * * *
(6) "Corporation" means the Employees' State Insurance
Corporation set up under this Act;
3*[(6A) "dependant" means any of the following relatives of
a deceased insured person, namely:--
(i) a widow, a minor legitimate or adopted son, an
unmarried legitimate and adopted 4*[daughter;]
5*[(ia) a widowed mother;]
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1. Subs. by the A.O. 1950 for "a federal railway".
2. Omitted by Act 29 1989, s. 3 (w.e.f. .........).
3. Ins. by Act 44 of 1966, s. 2 (w.e.f. 28-1-1968).
4. Subs. by Act 29 of 1989, s. 3 (w.e.f. 20-10-1989).
5. Ins. by s. 3, ibid. (w.e.f. 20-10-1989).
225
(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 eighteen years and 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 thereunder;
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
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1. Subs. by Act 44 of 1966, s. 2, for cl. (8) (w.e.f. 28-1-1968).
226
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;
1*[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 2*[ or any person engaged
as an apprentice, not being an apprentice engaged under
the Apprentices Act, 1961 (52 of 1961), or under the
standing orders of the establishment; 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;
2*[(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;
(v) dependent parents;
(12) "factory" means any premises including the precincts
thereof--
(a) whereon ten or more persons are employed or were
employed for wages on any day of the preceding twelve months, and in
any part of which a manufacturing process is being carried on with the
aid of power or is ordinarily so carried on, or
(b) whereon twenty or more persons are employed or were employed
for wages on any day of the preceding twelve months, and in any part
of which a manufacturing process is being carried on without the aid
of power 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;]
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1. Subs. by Act 44 of 1966, s. 2, for "but does not include" (w.e.f.
28-1-1968).
2. Subs. by Act 29 of 1989 s. 3 (w.e.f. 20-10-1989).
3. Subs. by the A.O. 1950, for "His Majesty's".
4. Subs. by Act 44 of 1966, s. 2, for cl. (b) (w.e.f. 28-1-1968).
5. Subs. by Act 29 of 1989, s. 3 (w.e.f. ....... ).
227
(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*(13A) "insurable employment" means an employment in a factory
or establishment to which this Act applies;]
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1. Ins. by Act 29 of 1989, s. 3 (w.e.f. 20-10-1989).
2. Clause (13A) ins. by Act 44 of 1966, s. 2 (w.e.f. 28-1-1968).
228
(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;
1*[(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;
2*[ (14AA) "manufacturing process" shall have the meaning
assigned to it in the Factories Act, 1948 (63 of 1948);]
(14B) "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, 3*[1948 (63 of 1948)];
4*[(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 per cent. or
more;]
2*[(15C) "power" shall have the meaning assigned to it in the
Factories Act, 1948(53 of 1948);]
(16) "prescribed" means prescribed by rules made under this Act:
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1. Clauses (14A) and (14B) ins. by Act 44 of 1966, s. 2 (w.e.f. 28-
1-1968).
2. Ins. by Act 29 of 1989, s. 3 (w.e.f. 20-10-1989).
3. Subs. by Act 53 of 1951, s. 3, for "1934".
4. Clauses (15A) and (15B) ins. by Act 44 of 1966, s. 2 (w.e.f. 28-
1-1968).
229
(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 1*[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;
2*[(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
groundnuts, 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 3*[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 4*[any
payment to an employee in respect of any period of
authorised leave, lock-out, strike which is not illegal or
lay-off and] other additional remuneration, if any, 5*[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;
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1. Subs. by Act 53 of 1951, s. 3, for "clause (e) of sub-section (1)
of section 9 of the Factories Act, 1934".
2. Ins. by Act 29 of 1989, s. 3 (w.e.f. 20-10-1989).
3. Subs. by Act 44 of 1966, s. 2, for "work" (w.e.f. 28-1-1968).
4. Ins. by s. 2, ibid. (w.e.f. 28-1-1968).
5. Subs. by Act 53 of 1951, s. 3, for "paid at regular intervals
after the last day of the wage period".
230
(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;
1*[ (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 or implied or otherwise;]
2*[(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 meaninsg respectively
assigned to them in that Act.]
2A.
Registration of factories and establishments.
3*[2A. Registration of factories and establishments.- 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.]
CHAP
CORPORATION, STANDING COMMITTEE AND MEDICAL BENEFIT COUNCIL
CHAPTER II
CORPORATION, STANDING COMMITTEE AND MEDICAL BENEFIT COUNCIL
3.
Establishment of Employees' State Insurance Corporation.
3. Establishment of Employees' State Insurance Corporation.- (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.
4.
Constitution of Corporation.
4. Constitution of Corporation.- The Corporation shall consist of
the following members, namely:--
4*[(a) a Chairman to be 5*[appointed] by the Central
Government;
(b) a Vice-Chairman to be 5*[appointed] by the Central
Government;]
(c) not more than five persons to be [appointed] 6*** by the
Central Government;
(d) one person each representing each of the 7*[8*[States]
in which this Act is in force] to be 5*[appointed] by
the State Government concerned;
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1. Subs. by Act 44 of 1966, s. 2, for cl. (24) (w.e.f. 28-1-1968).
2. Subs. by Act 45 of 1984, s. 2 (w.e.f. 27-1-1985).
3. S. 2A ins. by Act 44 of 1966 s. 3 (w.e.f. 28-1-1968).
4. Subs. by s. 4, ibid., for clauses (a) and (b) (w.e.f. 17-6-1967).
5. Subs. by Act 29 of 1989, s. 4 (w.e.f. 20-10-1989).
6. The words "of whom at least three shall be officials of the
Central Government" omitted by Act 44 of 1966, s. 4 (w.e.f.
17-6-1967).
7. Subs. by Act 53 of 1951, s. 4, for "Part A States".
8. Subs. by the Adaptation of Laws (No. 3) Order, 1956, for "Part A
States and Part B States".
231
(e) one person to be 1*[appointed] by the Central
Government to represent the 2*[Union territories];
(f) 3*[ten] persons representing employers to be 1*[appointed]
by the Central Government in consultation with such
organisations of employers as may be recognised for the
purpose by the Central Government;
(g) 3*[ten] persons representing employees to be 1*[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
1*[appointed] by the Central Government in
consultation with such organisations of medical
practitioners as may be recognised for the purpose by
the Central Government; 4***
5*[(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.]
5.
Term of office of members of the Corporation.
5. Term of office of members of the Corporation.- (1) Save as
otherwise expressly provided in this Act, the term of office of
members of the Corporation, other than 6*[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
1*[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 1*[appointment] or election of his successor is notified.
(2) The members of the Corporation referred to in clauses 6*[(a),
(b), (c), (d) and (e)] of section 4 shall hold office during the
pleasure of the Government 1*[appointing] them.
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1. Subs. by Act 29 of 1989 s. 4 (w.e.f. 20-10-1989).
2. Subs. by the Adaptation of Laws (No. 3) Order, 1956, for "Part C
States".
3. Subs. by Act 29 of 1989, s. 5 (w.e.f. 20-10-1989).
4. The word "and" omitted by Act 44 of 1966, s. 4, (w.e.f. 17-6-
1967).
5. Subs. by s. 4, ibid. for cl. (i) (w.e.f. 17-6-1967).
6. Subs. by s. 5, ibid. for "the ex officio members and members
referred to in clauses (c), (d) and (e) of section 4," (w.e.f.
17-6- 1967).
7. Subs. by s. 5, ibid., for "(c), (d) and (e)" (w.e.f. 17-6-1967).
232
6.
Eligibility for re-appointment or re-election.
6. Eligibility for re-appointment or re-election.- An outgoing
member of the Corporation, the Standing Committee, or the Medical
Benefit Council shall be eligible for 1*[re-appointment] or re-
election as the case may be.
7.
Authentication of orders, decisions, etc.
2*[7. Authentication of orders, decisions, etc.- 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 Director General or such other officer of the Corporation as may
be authorised by him.]
8.
Constitution of Standing Committee.
8. Constitution of Standing Committee.- 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, 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:--
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 7*[Parliament];
8*[(d) the Director General of the Corporation, ex officio.]
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1. Subs. by Act 29 of 1989, s. 4 (w.e.f. 20-10-1989).
2. Subs. by Act 44 of 1966, s. 6, for s. 7 (w.e.f. 17-6-1967).
3. Ins. by Act 53 of 1951, s. 5.
4. Subs. by Act 44 of 1966, s. 7, for "six" (w.e.f. 17-6-1967).
5. Sub-clause (i) omitted by Act 53 of 1961, s. 5.
6. Subs. by Act 44 of 1966, s. 7, for "two" (w.e.f. 17-6-1967).
7. Subs. by the A.O. 1950 for "the Central Legislature".
8. Cl. (d) ins by Act 44 of 1966, s. 7 (w.e.f. 17-6-1967).
233
9.
Term of office of members of Standing Committee.
9. Term of office of members of Standing Committee.- (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 1*[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 1*[clause (b) or clause (bb)] of section 8 shall hold office during
the pleasure of the Central Government.
10.
Medical Benefit Council.
10. Medical Benefit Council.- (1) The Central Government shall
constitute a Medical Benefit Council consisting of--
(a) the Director General, Health Services, ex officio, as
Chairman;
(b) a Deputy Director-General, Health Services, to be
4*[appointed] by the Central Government;
(c) the Medical Commissioner of the Corporation, ex officio;
(d) one member each representing each of the 2*[3*[States
(other than Union territories)] in which this Act is in
force] to be 4*[appointed] by the State Government
concerned;
(e) three members representing employers to be 4*[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 4*[appointed]
by the Central Government in consultation with such
organisations of employees as may be recognised for the
purpose by the Central Government; and
(g) three members, of whom not less than one shall be a
woman, representing the medical profession, to be
4*[appointed] by the Central Government in consultation
with such organisations
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1. Subs. by Act 53 of 1951, s. 6, for "clause (b)".
2. Subs. by s. 7, ibid., for "Part A States".
3. Subs. by the Adaptation of Laws (No. 3) Order, 1956, for "Part A
States or Part B States".
4. Subs. by Act 29 of 1989, s. 4 (w.e.f. 20-10-1989).
234
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 1*[appointment] is notified:
2*[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 1*[appointment] of his successor is
notified.]
(3) A member of the Medical Benefit Council referred to in
clauses (b) and (d) of sub-sction (1) shall hold office during the
pleasure of the Government 1*[appointing] him.
11.
Resignation of membership.
11. Resignation of membership.- 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.
12.
Cessation of membership.
12. Cessation of membership.- 3*[(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.
4*[(2) Where in the opinion of the Central Government any person
1*[appointed] or elected to represent employers, employees or the
medical profession on 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.]
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1. Subs. by Act 29 of 1989, s. 4 (w.e.f. 20-10-1989).
2. Added by Act 44 of 1966, s. 8 (w.e.f. 17-6-1967).
3. Renumbered as sub-section (1) by Act 53 of 1951, s. 8.
4. Ins. by s. 8, ibid.
5. Ins. by Act 44 of 1966, s. 9 (w.e.f. 17-6-1967).
234A
13.
Disqualification.
13. Disqualification.- 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 a subsisting contract with, or
any work being done for, the Corporation except as a
medical practitioner or as a shareholder (not being a
Director) of a company; or
(d) if before or after the commencement of this Act, he has
been convicted of an offence involving moral turpitude.
14.
Filling of vacancies.
14. Filling of vacancies.- (1) Vacancies in the office of
1*[appointed] or elected members of the Corporation, the Standing
Committee and the Medical Benefit Council shall be filled by
1*[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.
15.
Fees and allowances.
15. Fees and allowances.-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.
16.
Principal Officers. 16. Principal Officers.- 2*[(1) The Central
Governmen may, inconsultation with the Corporation, appoint a Director
Generaland a Financial Commissioner.] (2
17.
Staff.
17. Staff.- (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 3*[the
maximum monthly salary of which 4*[exceeds such salary as may be
prescribed by the Central Government.]
5*[(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 aforesaid, it shall obtain the prior approval of
the Central Government.
(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 6*[posts 7*[(other than medical
posts)] corresponding to 8*[group A and group B] posts under the
Central Government] shall be made in consultation with the 9*[Union]
Public Service Commission:
Provided that this sub-section shall not apply to an officiating
or temporary appointment for 10*[a period] not exceeding one year:
11*[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.]
12*[(4) If any question arises whether a post corresponds to a
8*[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. Subs. by Act 29 of 1989, s. 6 (w.e.f. 20-10-1989).
2. Ins. by Act 44 of 1966. s. 10 (w.e.f. 17-6-1967).
3. Subs. by Act 38 of 1975, s. 3, for certain words (w.e.f. 1-9-
1975).
4. Subs. by s. Act 29 of 1989, s. 7 (w.e.f........).
5. Subs. by s. 7 ibid. (w.e.f. 8-1-1989).
6. Subs. by Act 44 of 1966, s. 11, for "posts carrying a maximum
monthly pay of five hundred rupees and above" (w.e.f. 17-6-1967).
7. Ins. by Act 29 of 1989, s. 7 (w.e.f. 16-5-1990).
8. Subs. by Act 45 of 1984, s. 3 (w.e.f. 27-1-1985).
9. Subs. by the A.O. 1950, for "Federal".
10. Subs. by Act 29 of 1989, s. 7 (w.e.f. 20-10-1989).
11. Ins by s. 7, ibid. (w.e.f. 20-10-1989).
12. Ins. by Act 44 of 1966, s. 11 (w.e.f. 17-6-1967).
234C
18.
Powers of the Standing Committee.
18. Powers of the Standing Committee.- (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.
19.
Corporations power to promote measures for health, etc., of
insured persons.
19. Corporations power to promote measures for health, etc., of
insured persons.- 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 re-employment 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.
20.
Meetings of Corporation, Standing Committee and Medical
Benefit Council.
20. Meetings of Corporation, Standing Committee and Medical
Benefit Council.- 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 or
procedure in regard to transaction of business at their meetings as
may be specified in the regulations made in this behalf.
235
21.
Supersession of the Corporation, and Standing Committee.
21. Supersession of the Corporation, and Standing Committee.- (1)
If in the opinion of the Central Government, the Corporation or the
Standing Committee persistently makes default in performing the duties
imposed on it by or under this Act or abuses its powers, that
Government may, by notification in the Official Gazette, supersede the
Corporation, or in the case of the Standing Committee, supersede, in
consultation with the Corporation, the Standing Committee:
Provided that before issuing a notification under this sub-
section the Central Government shall give a reasonable opportunity to
the Corporation or the Standing Committee, as the case may be, to show
cause why it should not be superseded and shall consider the
explanations and objections, if any, of the Corporation or the
Standing Committee, as the case may be.
(2) Upon the publication of a notification under sub-section (1)
superseding the Corporation or the Standing Committee, all the members
of the Corporation or the Standing Committee, as the case may be,
shall, as from the date of such publication, be deemed to have vacated
their offices.
(3) When the Standing Committee has been superseded, a new
Standing Committee shall be immediately constituted in accordance with
section 8.
(4) When the Corporation has been superseded, the Central
Government may--
(a) immediately 1*[appoint] or cause to be 1*[appointed]
new members to the Corporation in accordance with
section 4 and may constitute a new Standing Committee
under section 8;
(b) in its discretion, appoint such agency, for such period
as it may think fit, to exercise the powers and perform
the functions of the Corporation and such agency shall
be competent to exercise all the powers and perform all
the functions of the Corporation.
(5) The Central Government shall cause a full report of any
action taken under this section and the circumstances leading to such
action to be laid before 2*[Parliament] at the earliest opportunity
and in any case not later than three months from the date of the
notification superseding the Corporation or the Standing Committee, as
the case may be.
---------------------------------------------------------------------
1. Subs. by Act 29 of 1989, s. 4 (w.e.f. 20-10-1989).
2. Subs. by the A. O. 1950 for "the Central Legislature".
236
22.
Duties of Medical Benefit Council.
22. Duties of Medical Benefit Council.- The Medical Benefit
Council shall--
(a) advise 1*[the Corporation and the Standing Committee] on
matters relating to the administration of medical
benefit, the certification for purposes of the grant of
benefits and other connected matters;
(b) have such powers and duties of investigation as may be
prescribed in relation to complaints against medical
practitioners in connection with medical treatment and
attendance; and
(c) perform such other duties in connection with medical
treatment and attendance as may be specified in the
regulations.
23.
Duties of Principal Officers.
23. Duties of Principal Officers.-The 2*[Director General and the
Financial Commissioner] shall exercise such powers and discharge such
duties as may be prescribed. They shall also perform such other
functions as may be specified in the regulations.
24.
Acts of Corporation, etc., not invalid by reason of defect
inconstitution, etc.
24. Acts of Corporation, etc., not invalid by reason of defect in
constitution, etc.- No act of the Corporation, the Standing Committee
or the Medical Benefit Council shall be deemed to be invalid by reason
of any defect in the constitution of the Corporation, the Standing
Committee or the Medical Benefit Council, or on the ground that any
member thereof was not entitled to hold or continue in office by
reason of any disqualification or of any irregularity in his
3*[appointment] or election, or by reason of such act having been done
during the period of any vacancy in the office of any member of the
Corporation, the Standing Committee or the Medical Benefit Council.
25.
Regional Boards, Local Committees, Regional and Local Medical
Benefit Councils.
25. Regional Boards, Local Committees, Regional and Local Medical
Benefit Councils.- The Corporation may appoint Regional Boards, Local
Committees and Regional and Local Medical Benefit Councils in such
areas and in such manner, and delegate to them such powers and
functions, as may be provided by the regulations.
CHAP
FINANCE AND AUDIT
CHAPTER III
FINANCE AND AUDIT
26.
Employees' State Insurance Fund.
26. Employees' State Insurance Fund.- (1) All contributions paid
under this Act and all other moneys received on behalf of the
Corporation shall be paid into a fund called the Employees' State
Insurance Fund which shall be
---------------------------------------------------------------------
1. Subs. by Act 53 of 1951, s. 9, for "the Corporation, the Standing
Committee and the Medical Commissioner".
2. Subs. by Act 29 of 1989 s. 8 (w.e.f. 20-10-1989).
3. Subs. by s. 4 ibid. (w.e.f. 20-10-1989).
237
held and administered by the Corporation for the purposes of this Act.
(2) The Corporation may accept grants, donations and gifts from
the Central or any State Government, 1*** local authority, or any
individual or body whether incorporated or not, for all or any of the
purposes of this Act.
2*[(3) Subject to the other provisions contained in this Act and
to any rules or regulations made in this behalf, all moneys accruing
or payable to the said Fund shall be paid into the Reserve Bank of
India or such other bank as may be approved by the Central Government
to the credit of an account styled the account of the Employees' State
Insurance Fund.]
(4) Such account shall be operated on by such officers as may be
authorized by the Standing Committee with the approval of the
Corporation.
27.
[Repealed.]
27. [Grant by the Central Government.]- Rep. by the Employees'
State Insurance (Amendment) Act, 1966 (44 of 1966) s. 12 (w.e.f. 17-6-
1967).
28.
Purposes for which the Fund may be expended.
28. Purposes for which the Fund may be expended.- Subject to the
provisions of this Act and of any rules made by the Central Government
in that behalf, the Employees' State Insurance Fund shall be expended
only for the following purposes, namely:--
(i) payment of benefits and provision of medical treatment
and attendance to insured persons and, where the
medical benefit is extended to their families, the
provision of such medical benefit to their families, in
accordance with the provisions of this Act and
defraying the charges and costs in connection
therewith;
(ii) payment of fees and allowances to members of the
Corporation, the Standing Committee and the Medical
Benefit Council, the Regional Boards, Local Committees
and Regional and Local Medical Benefit Councils;
(iii) payment of salaries, leave and joining time
allowances, travelling and compensatory allowances,
gratuities and compassionate allowances, pensions,
contributions to provident or other benefit fund of
officers and servants of the Corporation and meeting
the expenditure in respect of offices and other
services set up for the purpose of giving effect to the
provisions of this Act;
---------------------------------------------------------------------
1. The words "Part B State" omitted by Act 53 of 1951, s. 10.
2. Subs. by s. 10, ibid., for sub-section (3).
238
(iv) establishment and maintenance of hospitals,
dispensaries and other institutions and the provision
of medical and other ancillary services for the benefit
of insured persons and, where the medical benefit is
extended to their families, their families;
(v) payment of contributions to any State Government, 1***
local authority or any private body or individual,
towards the cost of medical treatment and attendance
provided to insured persons and, where the medical
benefit is extended to their families, their families
including the cost of any building and equipment, in
accordance with any agreement entered into by the
Corporation;
(vi) defraying the cost (including all expenses) of auditing
the accounts of the Corporation and of the valuation of
its assets and liabilities;
(vii) defraying the cost (including all expenses) of the
Employees' Insurance Courts set up under this Act;
(viii) payment of any sums under any contract entered into
for the purposes of this Act by the Corporation or the
Standing Committee or by any officer duly authorized by
the Corporation or the Standing Committee in that
behalf;
(ix) payment of sums under any decree, order or award of any
Court or Tribunal against the Corporation or any of its
officers or servants for any act done in the execution
of his duty or under a compromise or settlement of any
suit or other legal proceeding or claim instituted or
made against the Corporation;
(x) defraying the cost and other charges of instituting or
defending any civil or criminal proceedings arising out
of any action taken under this Act;
(xi) defraying expenditure, within the limits prescribed, on
measures for the improvement of the health and welfare
of insured persons and for the rehabilitation and re-
employment of insured persons who have been disabled or
injured; and
(xii) such other purposes as may be authorized by the
Corporation with the previous approval of the Central
Government.
28A.
Administrative expenses.
2*[28A. Administrative expenses.- The types of expenses which may
be termed as administrative expenses and the percentage of the income
of the Corporation which may be spent for such expenses shall be such
as may be prescribed by the Central Government and the Corporation
shall keep its administrative expenses within the limit so prescribed
by the Central Government.]
---------------------------------------------------------------------
1. The words and letter "Part B State" omitted by Act 53 of 1951, s.
11.
2. Ins. by Act 29 of 1989, s. 9 (w.e.f........).
239
29.
Holding of property, etc.
29. Holding of property, etc.-(1) The Corporation may, subject to
such conditions as may be prescribed by the Central Government,
acquire and hold property both movable and immovable, sell or
otherwise transfer any movable or immovable property which may have
become vested in or have been acquired by it and do all things
necessary for the purposes for which the Corporation is established.
(2) Subject to such conditions as may be prescribed by the
Central Government, the Corporation may from time to time invest any
moneys which are not immediately required for expenses properly
defrayable under this Act and may, subject as aforesaid, from time to
time re-invest or realise such investments.
(3) The Corporation may, with the previous sanction of the
Central Government and on such terms as may be prescribed by it raise
loans and take measures for discharging such loans.
(4) The Corporation may constitute for the benefit of its staff
or any class of them, such provident or other benefit fund as it may
think fit.
30.
Vesting of the property in the Corporation.
30. Vesting of the property in the Corporation.- All property
acquired before the establishment of the Corporation shall vest in the
Corporation and all income derived and expenditure incurred in this
behalf shall be brought into the books of the Corporation.
31.
[Repealed.]
31. [Expenditure by Central Government to be treated as a
loan.]-Rep. by the Employees' State Insurance (Amendment) Act, 1966 (44
of 1966). s. 12 (w.e.f. 17-6-1967).
32.
Budget estimates.
32. Budget estimates.- The Corporation shall in each year frame a
budget showing the probable receipts and the expenditure which it
proposes to incur during the following year and shall submit a copy of
the budget for the approval of the Central Government before such date
as may be fixed by it in that behalf. The budget shall contain
provisions adequate in the opinion of the Central Government for the
discharge of the liabilities incurred by the Corporation and for the
maintenance of a working balance.
33.
Accounts.
33. Accounts.- The Corporation shall maintain correct accounts of
its income and expenditure in such form and in such manner as may be
prescribed by the Central Government.
34.
Audit.
1*[34. Audit.- (1) The accounts of the Corporation shall be
audited annually by the Comptroller and Auditor-General of India and
any expenditure incurred by him in connection with such audit shall be
payable by the Corporation to the Comptroller and Auditor-General of
India.
(2) The Comptroller and Auditor-General of India and any person
appointed by him in connection with the audit of the accounts of the
Corporation shall have the same rights and privileges and authority in
connection with such audit as the Comptroller and Auditor-General has,
in connection with the audit of Government accounts and, in
particular, shall have the right to demand the production of books,
accounts, connected vouchers and other documents and papers and to
inspect any of the offices of the Corporation.
(3) The accounts of the Corporation as certified by the
Comptroller and Auditor-General of India or any other person appointed
by him in this behalf together with the audit report thereon shall be
forwarded to the Corporation which shall forward the same to the
Central Government along with its comments on the report of the
Comptroller and Auditor-General.]
---------------------------------------------------------------------
1. Ins. by Act 29 of 1989, s. 10 (w.e.f. 20-10-1989).
240
35.
Annual report.
35. Annual report.- The Corporation shall submit to the Central
Government an annual report of its work and activities.
36.
Budget audited accounts and the annual report to be placed before
Parliament
36. Budget audited accounts and the annual report to be placed
before Parliament.- The annual report, the audited accounts of the
Corporation 1*[together with the 2*[the report of the Comptroller and
Auditor-General of India thereon and the comments of the Corporation
on such report] under section 34], and the budget as finally adopted
by the Corporation shall be placed before 3*[Parliament] 4***.
37.
Valuation of assets and liabilities
37. Valuation of assets and liabilities.- The Corporation shall,
at intervals of five years, have a valuation of its assets and
liabilities made by a valuer appointed with the approval of the
Central Government:
Provided that it shall be open to the Central Government to
direct a valuation to be made at such other times as it may consider
necessary.
CHAP
CONTRIBUTIONS
CHAPTER IV
CONTRIBUTIONS
38.
All employees to be insured.
38. All employees to be insured.- Subject to the provisions of
this Act, all employees in factories or establishments to which this
Act applies shall be insured in the manner provided by this Act.
39.
Contributions.
39. Contributions.-(1) The contribution payable under this Act in
respect of an employee shall comprise contribution payable by the
employer (hereinafter referred to as the employer's contribution) and
contribution payable by the employee (hereinafter referred to as the
employee's contribution) and shall be paid to the Corporation.
5*[(2) The contributions shall be paid at such rates as may be
prescribed by the Central Government:
Provided that the rates so prescribed shall not be more than the
rates which were in force immediately before the commencement of the
Employees' State Insurance (Amendment) Act, 1989 (29 of 1989).]
---------------------------------------------------------------------
1. Ins. by Act 44 of 1966, s. 13 (w.e.f. 17-6-1967).
2. Subs. by Act 29 of 1989, s. 11 (w.e.f. 20-10-1989).
3. Subs. by the A. O. 1950 for "the Central Legislature"
4. Omitted by Act 29 of 1989 s. 11 (w.e.f. 20-10-1989)
5. Subs. by s. 12, ibid. (w.e.f........).
241
1*[(3) The wage period in relation to an employee shall be the
unit in respect of which all contributions shall be payable under this
Act.]
(4) The contributions payable in respect of each 1*[wage period]
shall ordinarily full due on the last day of the 1*[wage period] and
where an employee is employed for part of the 1*[wage period] or is
employed under two or more employers during the same 1*[wage period]
the contributions shall fall due on such days as may be specified in
the regulations.
2*[(5) (a) If any contribution payable under this Act is not paid
by the principal employer on the date on which such contribution has
become due he shall be liable to pay simple interest at the rate of
twelve per cent. per annum or at such higher rate as may be specified
in the regulations till the date of its actual payment:
Provided that higher interest specified in the regulations shall
not exceed the lending rate of interest charged by any scheduled bank.
(b) Any interest recoverable under clause (a) may be recovered as
an arrear of land revenue or under section 45C to section 45-I.
Explanation.-In this sub-section, "scheduled bank" means a bank
for the time being included in the Second Schedule to the Reserve Bank
of India Act, 1934 (2 of 1934).]
40.
Principal employer to pay contributions in the first instance.
40. Principal employer to pay contributions in the first
instance.- (1) The principal employer shall pay in respect of every
employee, whether directly employed by him or by or through an
immediate employer, both the employer's contribution and the
employee's contribution.
(2) Notwithstanding anything contained in any other enactment but
subject to the provisions of this Act and the regulations, if any,
made thereunder, the principal employer shall, in the case of an
employee directly employed by him (not being an exempted employee), be
entitled to recover from the employee the employee's contribution by
deduction from his wages and not otherwise:
Provided that no such deduction shall be made from any wages
other than such as relate to the period or part of the period in
respect of which the contribution is payable, or in excess of the sum
representing the employee's contribution for the period.
(3) Notwithstanding any contract to the contrary, neither the
principal employer nor the immediate employer shall be entitled to
deduct the employer's contribution from any wages payable to an
employee or otherwise to recover it from him.
(4) Any sum deducted by the principal employer from wages under
this Act shall be deemed to have been entrusted to him by the employee
for the purpose of paying the contribution in respect of which it was
deducted.
(5) The principal employer shall bear the expenses of remitting
the contributions to the Corporation.
41.
Recovery of contribution from immediate employer.
41. Recovery of contribution from immediate employe.- (1) A
principal employer, who has paid contribution in respect of an
employee employed by or through an immediate employer, shall be
entitled to recover the amount of the contribution so paid (that is to
say the employer's contribution as well as the employee's
contribution, if any) from the immediate employer, either by deduction
from any amount payable
---------------------------------------------------------------------
1. Subs. by Act 45 of 1984, s. 4 (w.e.f. 27-1-1985).
2. Ins. by Act 29 of 1989, s. 12 (w.e.f. 20-10-1989).
242
to him by the principal employer under any contract, or as a debt
payable by the immediate employer.
1*[(1A) The immediate employer shall maintain a register of
employees employed by or through him as provided in the regulations
and submit the same to the principal employer before the settlement of
any amount payable under sub-section (1).]
(2) In the case referred to in sub-section (1), the immediate
employee shall be entitled to recover the employee's contribution from
the employee employed by or through him by deduction from wages and
not otherwise, subject to the conditions specified in the proviso to
sub-section (2) of section 40.
2* * * * *
42.
General provisions as topayment of contributions.
42. General provisions as topayment of contributions.- (1) No
employee's contribution shall be payable by or on behalf of an
employee whose average daily wages 3*[during a wage period are below]
4*[such wages as may be prescribed by the Central Government].
Explanation.--The average daily wages of an employee shall be
calculated 4*[in such manner as may be prescribed by the Central
Government.]
(2) Contribution (both the employer's contribution and the
employee's contribution) shall be payable by the principal employer
for each 3*[wage period] 5*[in respect of the whole or part of which
wages are payable to the employee and not otherwise].
6* * * * *
7* * * * *
43.
Method of payment of contribution.
43. Method of payment of contributions.-Subject to the provisions
of this Act, the Corporation may make regulations for any matter
relating or incidental to the payment and collection of contributions
payable under this Act and without prejudice to the generality of
the foregoing power such regulations may provide for--
(a) the manner and time of payment of contributions;
(b) the payment of contributions by means of adhesive or
other stamps affixed to or impressed upon books, cards
or otherwise and regulating the manner, times and
conditions in, at and under which, such stamps are to
be affixed or impressed;
8*[(bb) the date by which evidence of contributions having
been paid is to be received by the Corporation;]
---------------------------------------------------------------------
1. Ins. by Act 29 of 1989, s. 13 (w.e.f. ...........).
2. Explanation omitted by Act 44 of 1966, s. 14 (w.e.f. 28-1-1968).
3. Subs. by Act 45 of 1984, s. 5 (w.e.f. 27-1-1985).
4. Subs. by Act 29 of 1989, s. 14 (w.e.f. 27-1-1985).
5. Subs. by Act 46 of 1966, s. 15, for "during the whole or part of
which an employee is employed" (w.e.f. 28-1-1968).
6. omitted by Act 45 of 1984, s. 5 (w.e.f. 27-1-1985).
7. Sub-sections (4) and (5) omitted by Act 44 of 1966, s. 15 (w.e.
f. 28-1- 1968).
8. Ins. by s. 16, ibid. (w.e.f. 28-1-1968).
243
(c) the entry in or upon books or cards of particulars of
contributions paid and benefits distributed in the case
of the insured persons to whom such books or cards
relate; and
(d) the issue, sale, custody, production, inspection and
delivery of books or cards and the replacement of books
or cards which have been lost, destroyed or defaced.
44.
Employers to furnish returns and maintain registers in certain cases.
1*[44. Employers to furnish returns and maintain registers in
certain cases.-(1) Every principal and immediate employer shall submit
to the Corporation or to such officer of the Corporation as it may
direct such returns in such form and containing such particulars
relating to persons employed by him or to any factory or establishment
in respect of which he is the principal or immediate employer as may
be specified in regulations made in this behalf.
(2) Where in respect of any factory or establishment the
Corporation has reason to believe that a return should have been
submitted under sub-section (1) but has not been so submitted, the
Corporation may require any person in charge of the factory or
establishment to furnish such particulars as it may consider necessary
for the purpose of enabling the Corporation to decide whether the
factory or establishment is a factory or establishment to which this
Act applies.
(3) Every principal and immediate employer shall maintain such
registers or records in respect of his factory or establishment as may
be required by regulations made in this behalf.]
45.
Inspectors, their functions and duties.
45. Inspectors, their functions and duties.- (1) The Corporation
may appoint such persons as inspectors, as it thinks fit, for the
purposes of this Act, within such local limits as it may assign to
them.
(2) Any Inspector appointed by the Corporation under sub-section
(1) (hereinafter referred to as Inspector), or other official of the
Corporation authorized in this behalf by it may, for the purposes of
enquiring into the correctness of any of the particulars stated in any
return referred to in section 44 or for the purpose of ascertaining
whether any of the provisions of this Act has been complied with--
(a) require any principal or immediate employer to furnish
to him such information as he may consider necessary
for the purposes of this Act; or
(b) at any reasonable time enter any office, establishment,
factory or other premises occupied by such principal or
immediate
---------------------------------------------------------------------
1. Subs. by Act 53 of 1951, s. 12, for the former section.
244
employer and require any person found in charge thereof
to produce to such Inspector or other official and
allow him to examine such accounts, books and other
documents relating to the employment of persons and
payment of wages or to furnish to him such information
as he may consider necessary; or
(c) examine, with respect to any matter relevant to the
purposes aforesaid, the principal or immediate
employer, his agent or servant, or any person found in
such factory, establishment, office or other premises,
or any person whom the said inspector or other official
has reasonable cause to believe to be or to have been
an employee;
1*[(d) make copies of, or take extracts from, any register,
account book or other document maintained in such
factory, establishment, office or other premises;
(e) exercise such other powers as may be prescribed.]
(3) An Inspector shall exercise such functions and perform such
duties as may be authorized by the Corporation or as may be specified
in the regulations.
45A.
Determination of contributions in certain cases
2*[45A. Determination of contributions in certain cases. (1) Where
in respect of a factory or establishment no returns, particulars,
registers or records are submitted, furnished or maintained in
accordance with the provisions of section 44 or any Inspector or other
official of the Corporation referred to in sub-section (2) of section
45 is 3*[prevented in any manner] by the principal or immediate
employer or any other person, in exercising his functions or
discharging his duties under section 45, the Corporation may, on the
basis of information available to it, by order, determine the amount
of contributions payable in respect of the employees of that factory
or establishment;
4*[Provided that no such order shall be passed by the
Corporation unless the principal or immediate employer or the person
in charge of the factory or establishment has been given a reasonable
opportunity of being heard.]
(2) An order made by the Corporation under sub-section (1) shall
be sufficient proof of the claim of the Corporation under section 75
or for recovery of the amount determined by such order as an arrear of
land revenue under section 45B 3*[or the recovery under section 45C to
section 45-I].
45B.
Recovery of contributions.
45B. Recovery of contributions.- Any contribution payable under
this Act may be recovered as an arrear of land revenue.]
45C.
Issue of certificate to the Recovery Officer.
5*[45C. Issue of certificate to the Recovery Officer.- (1) Where
any amount is in arrear under this Act, the authorised officer may
issue, to the Recovery Officer, a certificate under his signature
specifying the amount of arrears and the Recovery Officer, on receipt
of such certificate, shall proceed to recover the amount specified
therein from the factory or establishment or, as the case may be, the
principal or immediate employer by one or more of the modes mentioned
below:--
(a) attachment and sale of the movable or immovable property
of the factory or establishment or, as the case may be, the
principal or immediate employer;
(b) arrest of the employer and his detention in prison;
(c) appointing a receiver for the management of the movable
or immovable properties of the factory or establishment or, as
the case may be, the employer:
Provided that the attachment and sale of any property under this
section shall first be effected against the properties of the factory
or establishment and where such attachment and sale is insufficient
for recovering the whole of the amount of arrears specified in the
certificate, the Recovery Officer may take such proceedings against
the property of the employer for recovery of the whole or any part of
such arrears.
(2) The authorised officer may issue a certificate under sub-
section (1) notwithstanding that proceedings for recovery of the
arrears by any other mode have been taken.
45D.
Recovery officer to whom certificate is to be forwarded.
45D. Recovery officer to whom certificate is to be forwarded.- (1)
The authorised officer may forward the certificate referred to in
section 45C to the Recovery Officer within whose jurisdiction the
employer--
(a) carries on his business or profession or within whose
jurisdiction the principal place of his factory or establishment
is situate; or
(b) resides or any movable or immovable property of the
factory or establishment or the principal or immediate employer
is situate.
(2) Where a factory or an establishment or the principal or
immediate employer has property within the jurisdiction of more than
one Recovery Officers and the Recovery Officer to whom a certificate
is sent by the authorised officer--
(a) is not able to recover the entire amount by the sale of
the property, movable or immovable, within his jurisdiction; or
(b) is of the opinion that, for the purpose of expediting or
securing the recovery of the whole or any part of the amount, it
is necessary so to do,
he may send the certificate or, where only a part of the amount is to
be recovered, a copy of the certificate certified in the manner
prescribed by the Central Government and specifying the amount to be
recovered to the Recovery Officer within whose jurisdiction the
factory or establishment or the principal or immediate employer has
property or the employer resides, and thereupon that Recovery Officer
shall also proceed to recover the amount due under this section as if
the certificate or the copy thereof had been the certificate sent to
him by the authorised officer.
45E.
Validity of certificate and amendment thereof.
45E. Validity of certificate and amendment thereof.-(1) When the
authorised officer issues a certificate to a Recovery Officer under
section 45C, it shall not be open to the factory or establishment or
the principal or immediate employer to dispute before the Recovery
Officer the correctness of the amount, and no objection to the
certificate on any other ground shall also be entertained by the
Recovery Officer.
(2) Notwithstanding the issue of a certificate to a Recovery
Officer, the authorised officer shall have power to withdraw the
certificate or correct any clerical or arithmetical mistake in the
certificate by sending an intimation to the Recovery Officer.
(3) The authorised officer shall intimate to the Recovery Officer
any orders withdrawing or cancelling a certificate or any correction
made by him under sub-section (2) or any amendment made under sub-
section (4) of section 45F.
45F.
Stay of proceedings under certificate and amendment or
withdrawal thereof.
45F. Stay of proceedings under certificate and amendment or
withdrawal thereof.- (1) Notwithstanding that a certificate has been
issued to the Recovery Officer for the recovery of any amount, the
authorised officer may grant time for the payment of the amount, and
thereupon the Recovery Officer shall stay the proceedings until the
expiry of the time so granted.
(2) Where a certificate for the recovery of amount has been
issued, the authorised officer shall keep the Recovery Officer
informed of any amount paid or time granted for payment, subsequent to
the issue of such certificate.
(3) Where the order giving rise to a demand of amount for which a
certificate for recovery has been issued has been modified in appeal
or other proceedings under this Act, and, as a consequence thereof,
the demand is reduced but the order is the subject-matter of a further
proceeding under this Act, the authorised officer shall stay the
recovery of such part of the amount of the certificate as pertains to
the said reduction for the period for which the appeal or other
proceeding remains pending.
(4) Where a certificate for the recovery of amount has been
issued and subsequently the amount of the outstanding demand is
reduced as a result of an appeal or other proceeding under this Act,
the authorised officer shall, when the order which was the subject-
matter of such appeal or other proceeding has become final and
conclusive, amend the certificate or withdraw it, as the case may be.
45G.
Other modes of recovery.
45G. Other modes of recovery.- (1) Notwithstanding the issue of a
certificate to the Recovery Officer under section 45C, the Director
General or any other officer authorised by the Corporation may recover
the amount by any one or more of the modes provided in this section.
(2) If any amount is due from any person to any factory or
establishment or, as the case may be, the principal or immediate
employer who is in arrears, the Director General or any other officer
authorised by the Corporation in this behalf may required such person
to deduct from the said amount the arrears due from such factory or
establishment or, as the case may be, the principal or immediate
employer under this Act and such person shall comply with any such
requisition and shall pay the sum so deducted to the credit of the
Corporation:
Provided that nothing in this sub-section shall apply to any part
of the amount exempt from attachment in execution of a decree of a
civil court under section 60 of the Code of Civil Procedure, 1908 (5
of 1908).
(3) (i) The Director General or any other officer authorised by
the Corporation in this behalf may, at any time or from time to time,
by notice in writing, require any person from whom money is due or may
become due to the factory or establishment or, as the case may be, the
principal or immediate employer or any person who holds or may
subsequently hold money for or on account of the factory or
establishment or, as the case may be, the principal or immediate
employer, to pay to the Director General either forthwith upon the
money becoming due or being held or at or within the time specified in
the notice (not being before the money becomes due or is held) so much
of the money as is sufficient to pay the amount due from the factory
or establishment or, as the case may be, the principal or immediate
employer in respect of arrears or the whole of the money when it is
equal to or less than that amount.
(ii) A notice under this sub-section may be issued to any person
who holds or may subsequently hold any money for or on account of the
principal or immediate employer jointly with any other person and for
the purposes of this sub-section, the shares of the joint-holders in
such account shall be presumed, until the contrary is proved, to be
equal.
(iii) A copy of the notice shall be forwarded to the principal or
immediate employer at his last address known to the Director General
or, as the case may be, the officer so authorised and in the case of a
joint account to all the joint-holders at their last addresses known
to the Director General or the officer so authorised.
(iv) Save as otherwise provided in this sub-section, every person
to whom a notice is issued under this sub-section shall be bound to
comply with such notice, and, in particular, where any such notice is
issued to a post office, bank or an insurer, it shall not be necessary
for any pass book, deposit receipt, policy or any other document to be
produced for the purpose of any entry, endorsement or the like being
made before payment is made notwithstanding any rule, practice or
requirement to the contrary.
(v) Any claim respecting any property in relation to which a
notice under this sub-section has been issued arising after the date
of the notice shall be void as against any demand contained in the
notice.
(vi) Where a person to whom a notice under this sub-section is
sent objects to it by a statement on oath that the sum demanded or any
part thereof is not due to the principal or immediate employer or that
he does not hold any money for or on account of the principal or
immediate employer, then, nothing contained in this sub-section shall
be deemed to require such person to pay any such sum or part thereof,
as the case may be, but if it is discovered that such statement was
false in any material particular, such person shall be personally
liable to the Director General or the officer so authorised to the
extent of his own liability to the principal or immediate employer on
the date of the notice, or to the extent of the principal or immediate
employer's liability for any sum due under this Act, whichever is
less.
(vii) The Director General or the officer so authorised may, at
any time or from time to time, amend or revoke any notice issued under
this sub-section or extend the time for making any payment in
pursuance of such notice.
(viii) The Director General or the officer so authorised shall
grant a receipt for any amount paid in compliance with a notice issued
under this sub-section and the person so paying shall be fully
discharged from his liability to the principal or immediate employer
to the extent of the amount so paid.
(ix) Any person discharging any liability to the principal or
immediate employer after the receipt of a notice under this sub-
section shall be personally liable to the Director General or the
officer so authorised to the extent of his own liability to the
principal or immediate employer so discharged or to the extent of the
principal or immediate employer's liability for any sum due under this
Act, whichever is less.
(x) If the person to whom a notice under this sub-section is sent
fails to make payment in pursuance thereof to the Director General or
the officer so authorised, he shall be deemed to be a principal or
immediate employer in default in respect of the amount specified in
the notice and further proceedings may be taken against him for the
realisation of the amount as if it were an arrear due from him in the
manner provided in sections 45C to 45F and the notice shall have the
same effect as an attachment of a debt by the Recovery Officer in
exercise of his powers under section 45C.
(4) The Director General or the officer authorised by the
Corporation in this behalf may apply to the court in whose custody
there is money belonging to the principal or immediate employer for
payment to him of the entire amount of such money, or if it is more
than the amount due, an amount sufficient to discharge the amount due.
(5) The Director General or any officer of the Corporation may,
if so authorised by the Central Government by general or special
order, recover any arrears of amount due from a factory or an
establishment or, as the case may be, from the principal or immediate
employer by distraint and sale of its or his movable property in the
manner laid down in the Third Schedule to the Income-tax Act, 1961 (43
of 1961).
45H.
Application of certain provisions of the Income-tax Act.
45H. Application of certain provisions of the Income-tax Act.-The
provisions of the Second and Third Schedules to the Income-tax Act,
1961 (43 of 1961) and the Income-tax (Certificate Proceedings) Rules,
1962, as in force from time to time, shall apply with necessary
modifications as if the said provisions and the rules referred to the
arrears of the amount of contributions, interests or damages under
this Act instead of to the income-tax:
Provided that any reference in the said provisions and the rules
to the "assesses" shall be construed as a reference to a factory or an
establishment or the principal or immediate employer under this Act.
45I.
Definitions.
45-I. Definitions.- For the purposes of sections 45C to 45H,--
(a) "authorised officer" means the Director General,
Insurance Commissioner, Joint Insurance Commissioner, Regional
Director or such other officer as may be authorised by the
Central Government, by notification in the Official Gazette;
(b) "Recovery Officer" means any officer of the Central
Government, State Government or the Corporation, who may be
authorised by the Central Government, by notification in the
Official Gazette, to exercise the powers of a Recovery Officer
under this Act.]
---------------------------------------------------------------------
1. Ins. by Act 53 of 1951, s. 13.
2. Ins. by Act 44 of 1966, s. 17 (w.e.f. 17-6-1967).
3. Subs. by Act 29 of 1989, s. 15 (w.e.f. 20-10-1989).
4. Added by s. 16, ibid. (w.e.f. 20-10-1989).
5. Ins. by s. 16, ibid. (w.e.f. 1-9-1991).
245
CHAP
BENEFITS
CHAPTER V
BENEFITS
46.
Benefits
46. Benefits.- (1) Subject to the provisions of this Act, the
insured persons 1*[their dependants or the persons hereinafter
mentioned, as the case may be,] shall be entitled to the following
benefits, namely :--
(a) periodical payments to any insured person in case of his
sickness certified by a duly appointed medical
practitioner 2*[or by any other person possessing such
qualifications and experience as the Corporation may,
by regulations, specify in this behalf] (hereinafter
referred to as sickness benefit) ;
3*[(b) periodical payments to an insured woman in case of
confinement or mis-carriage or sickness arising out of
pregnancy, confinement, premature birth of child or
mis-carriage, such woman being certified to be eligible
for such payments by an authority specified in this
behalf by the regulations (hereinafter referred to as
maternity benefit;)]
(c) periodical payments to an insured person suffering from
disablement as a result of an employment injury
sustained as an employee under this Act and certified
to be eligible for such payments by an authority
specified in this behalf by the regulations
(hereinafter referred to as disablement benefit) ;
(d) periodical payments to such dependants of an insured
person who dies as a result of an employment injury
sustained as an employee under this Act, as are
entitled to compensation under this Act (hereinafter
referred to as dependants' benefit) ; 4***
(e) medical treatment for and attendance on insured persons
(hereinafter referred to as medical benefit) ; 2*[and]
2*[(f) payment to the eldest surviving member of the family
of an insured person who has died, towards the
expenditure on the funeral of the deceased insured
person, or, where the insured person did not have a
family or was not living with his family at the time of
his death, to the person who actually incurs
---------------------------------------------------------------------
1. Subs. by Act 44 of 1966, s. 18, for "or, as the case may be,
their dependents" (w.e.f. 28-1-1968).
2. Ins. by s. 18, ibid. (w.e.f. 28-1-1968).
3. Subs. by s. 18, ibid., for cl. (b) (w.e.f. 28-1-1968).
4. The word "and" omitted by s. 18, ibid. (w.e.f. 28-1-1968).
246-247
the expenditure on the funeral of the deceased insured
person (to be known as 1*[funeral expenses]) :
Provided that the amount of such payment shall not exceed
2*[such amount as may be prescribed by the Central
Government] and the claim for such payment shall be
made within three months of the death of the insured
persons or within such extended period as the
Corporation or any officer or authority authorised by
it in this behalf may allow.]
(2) The Corporation may, at the request of the appropriate
Government, and subject to such conditions as may be laid down in the
regulations, extend the medical benefits to the family of an insured
person.
8* * * * *
48.
[Repealed.]
48. [When person deemed available for employment.]- Rep. by the
Employees' State Insurance (Amendment) Act, 1966 (44 of 1966), s. 20
(w.e.f. 28-1-1968).
49.
Sickness benefit.
4*[49. Sickness benefit.- The qualification of a person to claim
sickness benefit, the conditions subject to which such benefit may be
given, the rates and period thereof shall be such as may be prescribed
by the Central Government.
50.
Maternity benefit.
50. Maternity benefit.- The qualification of an insured woman to
claim maternity benefit, the conditions subject to which such benefit
may be given, the rates and period thereof shall be such as may be
prescribed by the Central Government.]
---------------------------------------------------------------------
1. Subs. by Act 29 of 1989 s. 17 (w.e.f. 20-10-1989).
2. Subs. by s. 17, ibid. (w.e.f..........).
3. Omitted by s. 18, ibid. (w.e.f........).
4. Subs. by s. 19, ibid. (w.e.f..........).
248
51.
Disablement Benefit.
1*[51. Disablement Benefit.- Subject to the provisions of this Act
2***,--
(a) a person who sustains temporary disablement for not less
than three days (excluding the day of accident) shall
be entitled to periodical payment 3*[at such rates and
for such periods and subject to such conditions as may
be prescribed by the Central Government] ;
(b) a person who sustains permanent disablement, whether
total of partial, shall be entitled to periodical
payment 3*[at such rates and for such period and
subject to such conditions as may be prescribed by the
Central Government] :
2* * * * *
51A.
Presumption as to accident arising in course of employment.
51A. Presumption as to accident arising in course of employment.-
For the purposes of this Act, an accident arising in the course of an
insured person's employment shall be presumed, in the absence of
evidence to the contrary, also to have arisen out of that employment.
51B.
Accidents happening while acting in breach of regulations, etc.
51B. Accidents happening while acting in breach of regulations,
etc.- An accident shall be deemed to arise out of and in the course of
an insured person's employment notwithstanding that he is at the time
of the accident acting in contravention of the provisions of any law
applicable to him, or of any orders given by or on behalf of his
employer or that he is acting without instructions from his employer,
if--
(a) the accident would have been deemed so to have arisen
had the act not been done in contravention as aforesaid
or without instructions from his employer, as the case
may be; and
(b) the act is done for the purpose of and in connection
with the employer's trade or business.
51C.
Accidents happening while travelling in employer's transport.
51C. Accidents happening while travelling in employer's
transport.- (1) An accident happening while an insured person is, with
the express or implied permission of his employer, travelling as a
passenger by
---------------------------------------------------------------------
1. Subs. by Act 44 of 1966, s. 23, for s. 51.
2. Omitted by Act 29 of 1989, s. 20 (w.e.f.........).
3. Subs. by s. 20, ibid. (w.e.f. .........).
249
any vehicle to or from his place of work shall, notwithstanding that
he is under no obligation to his employer to travel by that vehicle,
be deemed to arise out of and in the course of his employment, if--
(a) the accident would have been deemed so to have arisen
had he been under such obligation; and
(b) at the time of the accident, the vehicle--
(i) is being operated by or on behalf of his
employer or some other person by whom it is
provided in pursuance of arrangements made with
his employer, and
(ii) is not being operated in the ordinary
course of public transport service.
(2) In this section "vehicle" includes a vessel and an aircraft.
51D.
Accidents happening while meeting emergency.
51D. Accidents happening while meeting emergency.- An accident
happening to an insured person in or about any premises at which he is
for the time being employed for the purpose of his employer's trade or
business shall be deemed to arise out of and in the course of his
employment, if it happens while he is taking steps, on an actual or
supposed emergency at those premises, to rescue, succour or protect
persons who are, or are thought to be or possibly to be, injured or
imperilled, or to avert or minimise serious damage to property.]
52.
Dependants' benefit.
1*[52. Dependants' benefit.- (1) If an insured person dies as a
result of an employment injury sustained as an employee under this Act
(whether or not he was in receipt of any periodical payment for
temporary disablement in respect of the injury) dependants' benefit
shall be payable 2*[at such rates and for such periods and subject to
such conditions as may be prescribed by the Central Government] to his
dependants specified in 2*[sub-clause (i), sub-clause (ia) and] sub-
clause (ii) of clause (6A) of section 2.
(2) In case the insured person dies without leaving behind him
the dependants as aforesaid, the dependants' benefit shall be paid to
the other dependants of the deceased 2*[at such rates and for such
period and subject to such conditions as may be prescribed by the
Central Government].
52A.
Occupational disease.
52A. Occupational disease.- (1) If an employee employed in any
employment specified in Part A of the Third Schedule contracts any
disease specified therein as an occupational disease peculiar to that
employment, or if an employee employed in the employment specified in
Part B of that Schedule for a continuous period of not less than six
months contracts any disease specified therein as an occupational
disease peculiar to that employment or if an employee employed in any
employment specified in Part C of that Schedule for such
---------------------------------------------------------------------
1. Subs. by Act 44 of 1966, s. 24, for s. 52.
2. Subs. by Act 29 of 1989, s. 21 (w.e.f......).
250
continuous period as the Corporation may specify in respect of each
such employment, contracts any disease specified therein as an
occupational disease peculiar to that employment, the contracting of
the disease shall, unless the contrary is proved, be deemed to be an
"employment injury" arising out of and in the course of employment.
(2) (i) Where the Central Government or a State Government, as
the case may be, adds any description of employment to the employments
specified in Schedule III to the Workmen's Compensation Act, 1923 (8
of 1923), by virtue of the powers vested in it under sub-section (3) of
section 3 of the said Act, the said description of employment and the
occupational diseases specified under that sub-section as peculiar to
that description of employment shall be deemed to form part of the
Third Schedule.
(ii) Without prejudice to the provisions of clause (i), the
Corporation after giving, by notification in the Official Gazette, not
less than three months' notice of its intention so to do, may, by a
like notification, add any description of employment to the
employments specified in the Third Schedule and shall specify in the
case of employments so added the diseases which shall be deemed for
the purposes of this section to be occupational diseases peculiar to
those employments respectively and thereupon the provisions of this
Act shall apply, as if such diseases had been declared by this Act to
be occupational diseases peculiar to those employments.
(3) Save as provided by sub-sections (1) and (2), no benefit
shall be payable to an employee in respect of any disease unless the
disease is directly attributable to a specific injury by accident
arising out of and in the course of his employment.
(4) The provisions of section 51A shall not apply to the cases to
which this section applies.]
53.
Bar against receiving or recovery of compensation or damages under
any other law.
1*[53. Bar against receiving or recovery of compensation or
damages under any other law.-An insured person or his dependants shall
not be entitled to receive or recover, whether from the employer of
the insured person or from any other person, any compensation or
damages under the Workmen's Compensation Act, 1923 (8 of 1923), or
any other law for the time being in force or otherwise, in respect of
an employment injury sustained by the insured person as an employee
under this Act.]
54.
Determination of question of disablement.
2*[54. Determination of question of disablement.- Any question--
(a) whether the relevant accident has resulted in permanent
disablement; or
---------------------------------------------------------------------
1. Subs. by Act 44 of 1966, s. 25, for s. 53.
2. Subs. by s. 26, ibid., for s. 54.
251
(b) whether the extent of loss of earning capacity can be
assessed provisionally or finally; or
(c) whether the assessment of the proportion of the loss of
earning capacity is provisional or final; or
(d) in the case of provisional assessment, as to the period
for which such assessment shall hold good,
shall be determined by a medical board constituted in accordance with
the provisions of the regulations and any such question shall
hereafter be referred to as the "disablement question".
54A.
References to medical boards and appeals to medical appeal tribunalsand
Employees' Insurance Courts.
54A. References to medical boards and appeals to medical appeal
tribunals and Employees' Insurance Courts.-(1) The case of any insured
person for permanent disablement benefit shall be referred by the
Corporation to a medical board for determination of the disablement
question and if, on that or any subsequent reference, the extent of
loss of earning capacity of the insured person is provisionally
assessed, it shall again be so referred to the medical board not later
than the end of the period taken into account by the provisional
assessment.
(2) If the insured person or the Corporation is not satisfied
with the decision of the medical board, the insured person or the
Corporation may appeal in the prescribed manner and within the
prescribed time to--
(i) the medical appeal tribunal constituted in accordance
with the provisions of the regulations with a further
right of appeal in the prescribed manner and within the
prescribed time to the Employees' Insurance Court, or
(ii) the Employees' Insurance Court directly:]
1*[Provided that no appeal by an insured person shall lie under
this sub-section if such person has applied for commutation of
disablement benefit on the basis of the decision of the medical board
and received the commuted value of such benefit:
Provided further that no appeal by the Corporation shall lie
under this sub-section if the Corporation paid the commuted value of
the disablement benefit on the basis of the decision of the medical
board.]
55.
Review of decisions by medical board or medical appeal tribunal.
2*[55. Review of decisions by medical board or medical appeal
tribunal.- (1) Any decision under this Act of a medical board or a
medical appeal tribunal may be reviewed at any time by the medical
board or the medical appeal tribunal, as the case may be, if it is
satisfied by fresh evidence that the decision was given in consequence
of the non-disclosure or misrepresentation by the employee or any
other person of a material fact (whether the non-disclosure or
misrepresentation was or was not fraudulent).
(2) Any assessment of the extent of the disablement resulting
from the relevant employment injury may also be reviewed by a medical
board, if it is satisified that since the making of the assessment
there has been a substantial and unforeseen aggravation of the results
of the relevant injury:
Provided that an assessment shall not be reviewed under this sub-
section unless the medical board is of opinion that having regard to
the period
---------------------------------------------------------------------
1. Ins. by Act 29 of 1989, s. 22 (w.e.f. 20-10-1989).
2. Subs. by Act 44 of 1966, s. 27, for s. 55.
252
taken into account by the assessment and the probable duration of the
aggravation aforesaid, substantial injustice will be done by not
reviewing it.
(3) Except with the leave of a medical appeal tribunal, an
assessment shall not be reviewed under sub-section (2) on any
application made less than five years, or in the case of a provisional
assessment, six months, from the date thereof and on such a review the
period to be taken into account by any revised assessment shall not
include any period before the date of the application.
(4) Subject to the foregoing provisions of this section, a
medical board day deal with a case of review in any manner in which it
could deal with it on an original reference to it, and in particular
may make a provisional assessment notwithstanding that the assessment
under review was final; and the provisions of section 54A shall apply
to an application for review under this section and to a decision of a
medical board in connection with such application as they apply to a
case for disablement benefit under that section and to a decision of
the medical board in connection with such case.
55A.
Review of dependants' benefit.
55A. Review of dependants' benefit.- (1) Any decision awarding
dependants' benefit under this Act may be reviewed at any time by the
Corporation if it is satisfied by fresh evidence that the decision was
given in consequence of non-disclosure or misrepresentation by the
claimant or any other person of a material fact (whether the non-
disclosure or misrepresentation was or was not fraudulent) or that the
decision is no longer in accordance with this Act due to any birth or
death or due to the marriage, re-marriage or cesser of infirmity of,
or attainment of the age of eighteen years by, a claimant.
(2) Subject to the provisions of this Act, the Corporation may,
on such review as aforesaid, direct that the dependants' benefit be
continued, increased, reduced or discontinued.]
56.
Medical benefit.
56. Medical benefit.- (1) An insured person or (where such medical
benefit is extended to his family) a member of his family whose
condition requires medical treatment and attendance shall be entitled
to receive medical benefit.
(2) Such medical benefit may be given either in the form of
outpatient treatment and attendance in a hospital or dispensary,
clinic or other institution or by visits to the home of the insured
person or treatment as in-patient in a hospital or other institution.
(3) A person shall be entitled to medical benefit during any
1*[Period] for which contributions are payable in respect of him or in
which he is qualified to claim sickness benefit or maternity benefit
2*[or is in receipt of such dis-
---------------------------------------------------------------------
1. Subs. by Act 45 of 1984, s. 8 (w.e.f. 27-1-1985).
2. Subs. by Act 53 of 1951, s. 17, for the words "or as provided
under the reguations, is in receipt of disablement benefit".
253
ablement benefit as does not disentitle him to medical benefit under
the regulations]:
Provided that a person in respect of whom contribution ceases to
be payable under this Act may be allowed medical benefit for such
period and of such nature as may be provided under the regulations:
1*[Provided further that an insured person who ceases to be in
insurable employment on account of permanent disablement shall
continue, subject to payment of contribution and such other conditions
as may be prescribed by the Central Government, to receive medical
benefit till the date on which he would have vacated the employment on
attaining the age of superannuation had he not sustained such
permanent disablement:
Provided also that an insured person, who has attained the age of
superannuation, and his spouse shall be eligible to receive medical
benefit subject to payment of contribution and such other conditions
as may be prescribed by the Central Government.
Explanation.--In this section, "superannuation", in relation to
an insured person, means the attainment by that person of such age as
is fixed in the contract or conditions of service as the age on the
attainment of which he shall vacate the insurable employment or the
age of sixty years where no such age is fixed and the person is no
more in the insurable employment.]
57.
Scale of medical benefit.
57. Scale of medical benefit.- (1) An insured person and (where
such medical benefit is extended to his family) his family shall be
entitled to receive medical benefit only of such kind and on such
scale as may be provided by the State Government or by the
Corporation, and an insured person or, where such medical benefit is
extended to his family, his family shall not have a right to claim any
medical treatment except such as is provided by the dispensary,
hospital, clinic or other institution to which he or his family is
allotted, or as may be provided by the regulations.
(2) Nothing in this Act shall entitle an insured person and
(where such medical benefit is extended to his family) his family to
claim reimbursement from the Corporation of any expenses incurred in
respect of any medical treatment, except as may be provided by the
regulations.
58.
Provision of medical treatment by State Government.
58. Provision of medical treatment by State Government.- (1) The
State Government shall provide for insured persons and (where such
benefit is extended to their families) their families in the State,
reasonable medical, surgical and obstetric treatment:
Provided that the State Government may, with the approval of the
Corporation, arrange for medical treatment at clinics of medical
practitioners on such scale and subject to such terms and conditions
as may be agreed upon.
(2) Where the incidence of sickness benefit payment to insured
persons in any State is found to exceed the all-India average, the
amount of such excess shall be shared between the Corporation and the
State Government in such proportion as may be fixed by agreement
between them:
Provided that the Corporation may in any case waive the recovery
of the whole or any part of the share which is to be borne by the
State Government.
(3) The Corporation may enter into an agreement with a State
Government in regard to the nature and scale of the medical treatment
that should be provided to insured persons and (where such medical
benefit is extended to the families) their families (including
provision of buildings, equipment, medicines and staff) and for the
sharing of the cost thereof and of any excess in the incidence of
sickness benefit to insured persons between the Corporation and the
State Government.
---------------------------------------------------------------------
1. Ins. by Act 29 of 1989, s. 23 (w.e.f.-------).
254
(4) In default of agreement between the Corporation and any State
Government as aforesaid the nature and extent of the medical treatment
to be provided by the State Government and the proportion in which the
cost thereof and of the excess in the incidence of sickness benefit
shall be shared between the Corporation and that Government, shall be
determined by an arbitrator (who shall be or shall have been a Judge of
the 1*[High Court 2*[of a State]]) appointed by the Chief Justice of
India and the award of the arbitrator shall be binding on the
Corporation and the State Government.
59.
Establishment and maintenance of hospitals, etc., by Corporation.
59. Establishment and maintenance of hospitals, etc., by
Corporation.- (1) The Corporation may, with the approval of the State
Government, establish and maintain in a State such hospitals,
dispensaries and other medical and surgical services as it may think
fit for the benefit of insured persons and (where such medical benefit
is extended to their families) their families.
(2) The Corporation may enter into agreement with any 3*** local
authority, private body or individual in regard to the provision of
medical treatment and attendance for insured persons and (where such
medical benefit is extended to their families) their families, in any
area and sharing the cost thereof.
59A.
Provision of medical benefit by the Corporation in lieu of
StateGovernment.
4*[59A. Provision of medical benefit by the Corporation in lieu
of State Government.- (1) Notwithstanding anything contained in any
other provision of this Act, the Corporation may, in consultation with
the State Government, undertake the responsibility for providing
medical benefit to insured persons and where such medical benefit is
extended to their families, to the families of such insured persons in
the State subject to the condition that the State Government shall
share the cost of such medical benefit in such proportion as may be
agreed upon between the State Government and the Corporation.
(2) In the event of the Corporation exercising its power under
sub-section (1), the provisions relating to medical benefit under this
Act shall apply, so far as may be, as if a reference therein to the
State Government were a reference to the Corporation.]
General
60.
Benefit not assignable or attachable.
60. Benefit not assignable or attachable.- (1) The right to
receive any payment of any benefit under this Act shall not be
transferable or assignable.
---------------------------------------------------------------------
1. Subs. by the A. O. 1950 for "High Court of a Province".
2. Subs. by Act 53 of 1951, s. 18, for "for a Part A State".
3. The words and letter "Part B State" omitted by the Adaptation of
Laws (No. 4) Order, 1957 (w.e.f. 1-11-1956).
4. Ins. by Act 44 of 1966, s. 28 (w.e.f. 17-6-1967).
254A
(2) No cash benefit payable under this Act shall be liable to
attachment or sale in execution of any decree or order of any Court.
61.
Bar of benefits under other enactments.
61. Bar of benefits under other enactments.- When a person is
entitled to any of the benefits provided by this Act, he shall not be
entitled to receive any similar benefit admissible under the
provisions of any other enactment.
62.
Persons not to commute cash benefits.
62. Persons not to commute cash benefits.- Save as may be provided
in the regulations no person shall be entitled to commute for a lump
sum any 1*[disablement benefit] admissible under this Act.
63.
Persons not entitled to receive benefit in certain cases.
2*[63. Persons not entitled to receive benefit in certain cases.-
Save as may be provided in the regulations, no person shall be
entitled to sickness benefit or disablement benefit for temporary
disablement on any day on which he works or remains on leave or on a
holiday in respect of which he receives wages or on any day on which
he remains on strike.]
64.
Recipients of sickness or disablement benefit to observe conditions.
64. Recipients of sickness or disablement benefit to observe
conditions.- A person who is in receipt of sickness benefit or
disablement benefit (other than benefit granted on permanent
disablement)--
(a) shall remain under medical treatment at a dispensary,
hospital, clinic or other institution provided under
this Act and shall carry out the instructions given by
the medical officer or medical attendant in charge
thereof;
(b) shall not while under treatment do anything which might
retard or prejudice his chances of recovery;
(c) shall not leave the area in which medical treatment
provided by this Act is being given, without the
permission of the medical officer, medical attendant or
such other authority as may be specified in this behalf
by the regulations; and
(d) shall allow himself to be examined by any duly appointed
medical officer 3*** or other person authorized by
the Corporation in this behalf.
65.
Benefits not to be combined.
65. Benefits not to be combined.- (1) An insured person shall not
be entitled to receive for the same period--
(a) both sickness benefit and maternity benefit; or
(b) both sickness benefit and disablement benefit for
temporary disablement; or
(c) both maternity benefit and disablement benefit for
temporary disablement.
---------------------------------------------------------------------
1. Subs. by Act 29 of 1989 s. 24 (w.e.f. 20-10-1989).
2. Subs. by s. 25, ibid. (w.e.f. 20-10-1989).
3. Omitted by s. 26, ibid. (w.e.f. 20-10-1989).
254B
(2) Where a person is entitled to more than one of the benefits
mentioned in sub-section (1), he shall be entitled to choose which
benefit he shall receive.
66.
[Repealed.]
66. [Corporation's right to recover damages from employer
inc certain cases.]- Rep. by the Employees' State Insurance (Amendment)
Act, 1966 (44 of 1966), s. 29 (w.e.f. 17-6-1967).
67.
[Repealed.]
67.[Corporation's right to be indemnified in certain cases.] Rep.
by s. 29, ibid. (w.e.f. 17-6-1967).
68.
Corporation's rights where a principal employer fails or neglects topay any
contribution.
68. Corporation's rights where a principal employer fails or
neglects to pay any contribution.- (1) If any principal employer fails
or neglects to pay any contribution which under this Act he is liable
to pay in respect of any employee and by reason thereof such person
becomes disentitled to any benefit or entitled to a benefit on a lower
scale, the Corporation may, on being satisfied that the contribution
should have been paid by the principal employer, pay to the person the
benefit at the rate to which he would have been entitled if the
failure or neglect had not occurred and the Corporation shall be
entitled to recover from the principal employer either--
1*[(i) the difference between the amount of benefit which is
paid by the Corporation to the said person and the
amount of the benefit which would have been payable on
the basis of the contributions which were in fact paid
by the employer; or]
(ii) twice the amount of the contribution which the employer
failed or neglected to pay,
whichever is greater.
(2) The amount recoverable under this section may be recovered as
if it were an arrear of land-revenue. 2*[or under section 45C to
section 45-I.]
69.
Liability of owner or occupier of factories, etc., for
excessive sicknes benefit.
69. Liability of owner or occupier of factories, etc., for
excessive sickness benefit.- (1) Where the Corporation considers that
the incidence of sickness among insured persons is excessive by reason
of--
(i) insanitary working conditions in a factory or
establishment or the neglect of the owner or occupier
of the factory or establishment to observe any health
regulations enjoined on him by or under any enactment,
or
---------------------------------------------------------------------
1. Subs. by Act 53 of 1951, s. 19, for cl. (i).
2. Added by Act 29 of 1989, s. 27 (w.e.f. 20-10-1989).
254C
(ii) insanitary conditions of any tenements or lodgings
occupied by insured persons and such insanitary
conditions are attributable to the neglect of the owner
of the tenements or lodgings to observe any health
regulations enjoined on him by or under any enactment,
the Corporation may send to the owner or occupier of the factory or
establishment or to the owner of the tenements or lodgings, as the
case may be, a claim for the payment of the amount of the extra
expenditure incurred by the Corporation as sickness benefit; and if
the claim is not settled by agreement, the Corporation may refer the
matter, with a statement in support of its claim, to the appropriate
Government.
(2) If the appropriate Government is of opinion that a prima
facie case for inquiry is disclosed, it may appoint a competent person
or persons to hold an inquiry into the matter.
(3) if upon such inquiry it is proved to the satisfaction of the
person or persons holding the inquiry that the excess in incidence of
sickness among the insured persons is due to the default or neglect of
the owner or occupier of the factory or establishment or the owner of
the tenements or lodgings, as the case may be, the said person or
persons shall determine the amount of the extra expenditure incurred
as sickness benefit, and the person or persons by whom the whole or
any part of such amount shall be paid to the Corporation.
(4) A determination under sub-section (3) may be enforced as if
it were a decree for payment of money passed in a suit by a Civil
Court.
(5) For the purposes of this section, "owner" of tenements or
lodgings shall include any agent of the owner and any person who is
entitled to collect the rent of the tenements or lodgings as a lessee
of the owner.
70.
Repayment of benefit improperly received.
70. Repayment of benefit improperly received.- (1) Where any
person has received any benefit or payment under this Act when he is
not lawfully entitled thereto, he shall be liable to repay to the
Corporation the value of the benefit or the amount of such payment, or
in the case of his death his representative shall be liable to repay
the same from the assets of the deceased, if any, in his hands.
(2) The value of any benefits received other than cash payments
shall be determined by such authority as may be specified in the
regulations made in this behalf and the decision of such authority
shall be final.
(3) The amount recoverable under this section may be recovered as
if it were an arrear of land-revenue. 1*[or under section 45-C to
section 45-I.]
---------------------------------------------------------------------
1. Added by Act 29 of 1989, s. 27 (w.e.f. 20-10-1989).
254D
71.
Benefit payable up to and including day of death.
71. Benefit payable up to and including day of death.- 1*[If a
person dies] during any period for which he is entitled to a cash
benefit under this Act, the amount of such benefit up to and including
the day of his death shall be paid to any person nominated by the
deceased person in writing in such form as may be specified in the
regulations or if there is no such nomination, to the heir or legal
representative of the deceased person.
72.
Employer not to reduce wages, etc.
72. Employer not to reduce wages, etc.-No employer by reason only
of his liability for any contributions payable under this Act shall,
directly or indirectly reduce the wages of any employee, or except as
provided by the regulations, discontinue or reduce benefits payable to
him under the conditions of his service which are similar to the
benefits conferred by this Act.
73.
Employer not to dismiss or punish employee during period of sickness,etc.
73. Employer not to dismiss or punish employee during period of
sickness, etc.- (1) No employer shall dismiss, discharge, or reduce or
otherwise punish an employee during the period the employee is in
receipt of sickness benefit or maternity benefit, nor shall he, except
as provided under the regulations, dismiss, discharge or reduce or
otherwise punish an employee during the period he is in receipt of
---------------------------------------------------------------------
1. Subs. by Act 29 of 1989, s. 28 (w.e.f.------).
255
disablement benefit for temporary disablement or is under medical
treatment for sickness or is absent from work as a result of illness
duly certified in accordance with the regulations to arise out of the
pregnancy or confinement rendering the employee unfit for work.
(2) No notice of dismissal or discharge or reduction given to an
employee during the period specified in sub-section (1) shall be valid
or operative.
CHAP
TRANSITORY PROVISIONS
1*[CHAPTER VA2*
TRANSITORY PROVISIONS
73A.
Employer's special contribution.
73A. Employer's special contribution.- (1) For so long as the
provisions of this Chapter are in force, every principal employer
shall, notwithstanding anything contained in this Act, pay to the
Corporation a special contribution (hereinafter referred to as the
employer's special contribution) at the rate specified under sub-
section (3).
(2) The employer's special contribution shall, in the case of a
factory or establishment situate in any area in which the provisions
of both Chapters IV and V are in force, be in lieu of the employer's
contribution payable under Chapter IV.
(3) The employer's special contribution shall consist of such
percentage, not exceeding five percent. of the total wage bill of the
employer, as the Central Government may, by notification in the
Official Gazette, specify from time to time:
Provided that before fixing or varying any such percentage the
Central Government shall give by like notification not less than two
months' notice of its intention so to do and shall in such
notification specify the percentage which it proposes to fix or, as
the case may be, the extent to which the percentage already fixed is
to be varied:
Provided further that the employer's special contribution in the
case of factories or establishments situate in any area in which the
provisions of both Chapters IV and V are in force shall be fixed at a
rate higher than that in the case of factories or establishments
situate in any area in which the provisions of the said Chapters are
not in force.
(4) The employer's special contribution shall fall due as soon as
the liability of the employer to pay wages accrues, but may be paid to
the Corporation at such intervals, within such time and in such manner
as the Central Government may, by notification in the official
---------------------------------------------------------------------
1. Chapter VA ins, by Act 53 of 1951, s. 20.
2. Chapter VA shall cease to have effect on and from 1-7-1973 vide
Notification No. S.O. 173 (E), dated 26-3-1973.
256
Gazette, specify, and any such notification may provide for the grant
of a rebate for prompt payment of such contribution.
Explanation.--"Total wage bill" in this section means the total
wages which have accrued due to employees in a factory or
establishment in respect of such wage periods as may be specified for
the purposes of this section by the Central Government by notification
in the Official Gazette.
73B.
Special tribunals for decision of disputes or questions under thisChapter
where there is no Employees' Insurance Court.
73B. Special tribunals for decision of disputes or questions
under this Chapter where there is no Employees' Insurance Court.- (1)
If any question or dispute arises in respect of the employer's special
contribution payable or recoverable under this Chapter and there is no
Employees' Insurance Court having jurisdiction to try such question or
dispute, the question or dispute shall be decided by such authority as
the Central Government may specify in this behalf.
(2) The provisions of sub-section (1) of section 76, sections 77
to 79 and 81 shall, so far as may be, apply in relation to a
proceeding before an authority specified under sub-section (1) as they
apply in relation to a proceeding before an Employees' Insurance
Court.
73C.
Benefits under Chapter V to depend upon employee's contribution.
73C. Benefits under Chapter V to depend upon employee's
contribution.- The payment of the employee's contribution for any week
in accordance with the provisions of Chapter IV in any area where all
the provisions of that Chapter are in force shall for the purpose of
Chapter V, have effect as if the contributions payable under Chapter
IV in respect of that employee for that week had been paid, and shall
accordingly entitle the employee as an insured person to the benefits
specified in Chapter V if he is otherwise entitled thereto.
Explanation.--In the case of an exempted employee, the employee's
contribution shall be deemed to have been paid for a week if the
Corporation is satisfied that during that week the employer's
contribution under Chapter IV would have been payable in respect of
him but for the provisions of this Chapter.
73D.
Mode of recovery of employer's special contribution.
73D. Mode of recovery of employer's special contribution.- The
employer's special contribution payable under this Chapter may be
recovered as if it were an arrear of land-revenue.
73E.
Power to call for additional information or return.
73E. Power to call for additional information or return.- Without
prejudice to the other provisions contained in this Act, the
Corporation may, for the purpose of determining whether the employer's
special contribution is payable under this Chapter or for determining
the amount thereof, by general or special order, require any principal
or immediate employer or any other person to furnish such information
or returns to such authority, in such form and within such time as may
be specified in the order.
257
73F.
Power to exempt to be exercised by Central Government alone in respectof
employer's special contributions.
73F. Power to exempt to be exercised by Central Government alone
in respect of employer's special contributions.- Notwithstanding
anything contained in this Act, the Central Government may, having
regard to the size or location of, or the nature of the industry
carried on in, any factory or establishment or class of factories or
establishments, exempt the factory or establishment or class of
factories or establishments from the payment of the employer's special
contribution under this Chapter and nothing contained in sections 87
to 91 inclusive shall be deemed to authorize any State Government to
grant any such exemption.
73G.
Application of certain provisions of this Act to employer's
specialcontribution.
73G. Application of certain provisions of this Act to employer's
special contribution.- Save as otherwise expressly provided in this
Chapter, the provisions of Chapter IV, section 72 and Chapter VII and
any rules and regulations made under this Act shall, so far as may be,
apply in relation to the payment or recovery of employer's special
contributions, the penalties specified in connection therewith and all
other matters incidental thereto as they would have applied in
relation to an employer's contribution if this Chapter were not in
force and the employer's contribution had been payable under this Act.
73H.
[Repealed.]
73H. [Power to remove difficulties.]- Rep. by the Employees'
State Insurance (Amendment) Act, 1966 (44 of 1966), s. 31 (w.e.f.
17-6-1976).
73I.
Duration of Chapter VA.
73I. Duration of Chapter VA.- The Central Government may, by
notification in the Official Gazette, direct that the provisions of
this Chapter shall cease to have effect on such date as may be
specified in the notification, not being a date earlier than three
months from the date of the notification:
Provided that on the provisions of this Chapter so ceasing to
have effect the provisions of section 6 of the General Clauses Act,
1897 (10 of 1897), shall apply as if the provisions of this Chapter
had then been repealed by a Central Act.]
CHAP
ADJUDICATION OF DISPUTE AND CLAIMS
CHAPTER VI
ADJUDICATION OF DISPUTE AND CLAIMS
74.
Constitution of Employees' Insurance Court.
74. Constitution of Employees' Insurance Court.- (1) The State
Government shall, by notification in the Official Gazette, constitute
an Employees' Insurance Court for such local area as may be specified
in the notification.
(2) The Court shall consist of such number of Judges as the State
Government may think fit.
258
(3) Any person who is or has been a judicial officer or is a
legal practitioner of five years' standing shall be qualified to be a
Judge of the Employees' Insurance Court.
(4) The State Government may appoint the same Court for two or
more local areas or two or more Courts for the same local area.
(5) Where more than one Court has been appointed for the same
local area, the State Government may by general or special order
regulate the distribution of business between them.
75.
Matters to be decided by Employees' Insurance Court.
75. Matters to be decided by Employees' Insurance Court.- (1) If
any question or dispute arises as to--
(a) whether any person is an employee within the meaning of
this Act or whether he is liable to pay the employee's
contribution, or
(b) the rate of wages or average daily wages of an employee
for the purposes of this Act, or
(c) the rate of contribution payable by a principal employer
in respect of any employee, or
(d) the person who is or was the principal employer in
respect of any employee, or
(e) the right of any person to any benefit and as to the
amount and duration thereof, or
1*[(ee) any direction issued by the Corporation under
section 55A on a review of any payment of dependants'
benefits, or]
2* * * * *
(g) any other matter which is in dispute between a principal
employer and the Corporation, or between a principal
employer and an immediate employer, or between a person
and the Corporation or between an employee and a
principal or immediate employer in respect of any
contribution or benefit or other dues payable or
recoverable under this Act 3*[or any other matter
required to be or which may be decided by the
Employees' Insurance Court under this Act],
such question or dispute 3*[subject to the provisions of sub-section
(2A)] shall be decided by the Employees' Insurance Court in accordance
with the provisions of this Act.
---------------------------------------------------------------------
1. Ins. by Act 53 of 1951, s. 21 and subs. by Act 44 of 1966, s. 32
(w.e.f. 28-1-1968).
2. Cl. (f) omitted by Act 44 of 1966, s. 32 (w.e.f. 28-1-1968).
3. Ins. by s. 32, ibid. (w.e.f. 28-1-1968).
259
(2) 1*[Subject to the provisions of sub-section (2A), the
following claims] shall be decided by the Employees' Insurance Court,
namely:--
(a) claim for the recovery of contributions from the
principal employer;
(b) claim by a principal employer to recover contributions
from any immediate employer;
2* * * * *
(d) claim against a principal employer under section 68;
(e) claim under section 70 for the recovery of the value or
amount of the benefits received by a person when he is
not lawfully entitled thereto; and
(f) any claim for the recovery of any benefit admissible
under this Act.
3*[(2A) If in any proceedings before the Employees' Insurance
Court a disablement question arises and the decision of a medical
board or a medical appeal tribunal has not been obtained on the same
and the decision of such question is necessary for the determination
of the claim or question before the Employees' Insurance Court, that
Court shall direct the Corporation to have the question decided by
this Act and shall thereafter proceed with the determination of the
claim or question before it in accordance with the decision of the
medical board or the medical appeal tribunal, as the case may be,
except where an appeal has been filed before the Employees' Insurance
Court under sub-section (2) of section 54A in which case the
Employees' Insurance Court may itself determine all the issues arising
before it.]
4*[(2B) No matter which is in dispute between a principal
employer and the Corporation in respect of any contribution or any
other dues shall be raised by the principal employer in the Employees'
Insurance Court unless he has deposited with the Court fifty per cent.
of the amount due from him as claimed by the Corporation:
Provided that the Court may, for reasons to be recorded in
writing, waive or reduce the amount to be deposited under this sub-
section.]
(3) No Civil Court shall have jurisdiction to decide or deal with
any question or dispute as aforesaid or to adjudicate on any liability
which by or under this Act is to be decided by 5*[a medical board, or
by a medical appeal tribunal or by the Employees' Insurance Court].
76.
Institution of proceedings, etc.
76. Institution of proceedings, etc.- (1) Subject to the
provisions of this Act and any rules made by the State Government, all
proceedings before the Employees' Insurance Court shall be instituted
in the Court appointed for the local area in which the insured person
was working at the time the question or dispute arose.
---------------------------------------------------------------------
1. Subs. by Act 44 of 1966, s. 32, for "The following claims"
(w.e.f. 28-1-1968).
2. Cl. (c) omitted by s. 32, ibid. (w.e.f. 28-1-1968).
3. Ins. by s. 32, ibid. (w.e.f. 28-1-1968).
4. Ins. by Act 29 of 1989, s. 29 (w.e.f. 20-10-1989).
5. Subs. by Act 44 of 1966, s. 32, for "the Employees Insurance
Court" (w.e.f. 28-1-1968).
260
(2) If the Court is satisfied that any matter arising out of any
proceeding pending before it can be more conveniently dealt with by
any other Employees' Insurance Court in the same State, it may,
subject to any rules made by the State Government in this behalf order
such matter to be transferred to such other Court for disposal and
shall forthwith transmit to such other Court the records connected
with that matter.
(3) The State Government may transfer any matter pending before
any Employees' Insurance Court in the State to any such Court in
another State with the consent of the State Government of that State.
(4) The Court to which any matter is transferred under sub-
section (2) or sub-section (3) shall continue the proceedings as if
they had been originally instituted in it.
77.
Commencement of proceedings.
77. Commencement of proceedings.- (1) The proceedings before an
Employees' Insurance Court shall be commenced by application.
1*[(1A) Every such application shall be made within a period of
three years from the date on which the cause of action arose.
Explanation.--For the purpose of this sub-section,--
(a) the cause of action in respect of a claim for benefit
shall not be deemed to arise unless the insured person
or in the case of dependants' benefit, the dependants
of the insured person claims or claim that benefit in
accordance with the regulations made in that behalf
within a period of twelve months after the claim became
due or within such further period as the Employees'
Insurance Court may allow on grounds which appear to it
to be reasonable;
2*[(b) the cause of action in respect of a claim by the
Corporation for recovering contributions (including interest and
damages) from the principal employer shall be deemed to have arisen on
the date on which such claim is made by the Corporation for the first
time:
Provided that no claim shall be made by the Corporation after
five years of the period to which the claim relates;
(c) the cause of action in respect of a claim by the principal
employer for recovering contributions from an immediate employer shall
not be deemed to arise till the date by which the evidence of
contributions having been paid is due to be received by the
Corporation under the regulations.]
(2) Every such application shall be in such form and shall
contain such particulars and shall be accompanied by such fee, if any,
as may be prescribed by rules made by the State Government in
consultation with the Corporation.
---------------------------------------------------------------------
1. Ins. by Act 44 of 1966, s. 33 (w.e.f. 28-1-1968).
2. Subs. by Act 29 of 1989, s. 30 (w.e.f. 20-10-1989).
261
78.
Powers of Employees Insurance Court.
78. Powers of Employees Insurance Court.- (1) The Employees'
Insurance Court shall have all the powers of a Civil Court for the
purposes of summoning and enforcing the attendance of witnesses,
compelling the discovery and production of documents and material
objects, administering oath and recording evidence and such Court
shall be deemed to be a Civil Court within the meaning of 1*[section
195 and Chapter XXVI of the Code of Criminal Procedure, 1973 (2 of
1974).]
(2) The Employees' Insurance Court shall follow such procedure as
may be prescribed by rules made by the State Government.
(3) All costs incidental to any proceeding before an Employees'
Insurance Court shall, subject to such rules as may be made in this
behalf by the State Government, be in the discretion of the Court.
(4) An order of the Employees' Insurance Court shall be
enforceable as if it were a decree passed in a suit by a Civil Court.
79.
Appearance by legal practitioners, etc.
79. Appearance by legal practitioners, etc.- Any application,
appearance or act required to be made or done by any person to or
before an Employees' Insurance Court (other than appearance of a
person required for the purpose of his examination as a witness) may
be made or done by a legal practitioner or by an officer of a
registered trade union authorized in writing by such person or with
the permission of the Court, by any other person so authorized.
80
[Repealed.]
80. [Benefit not admissible unless claimed in time.]- Rep. by
the Employees' State Insurance (Amendment) Act, 1966 (44 of 1966), s.
34 (w.e.f. 28-1- 1968).
81
Reference to High Court.
81. Reference to High Court.- An Employees' Insurance Court may
submit any question of law for the decision of the High Court and if
it does so shall decide the question pending before it in accordance
with such decision.
82.
Appear.
82. Appear.- (1) Save as expressly provided in this section, no
appeal shall lie from an order of an Employees' Insurance Court.
(2) An appeal shall lie to the High Court from an order of an
Employees' Insurance Court if it involves a substantial question of
law.
(3) The period of limitation for an appeal under this section
shall be sixty days.
(4) The provisions of section 5 and 12 of the 2*[Limitation Act,
1963 (36-6-1963)] shall apply to appeals under this section.
83.
Stay of payment pending appeal.
83. Stay of payment pending appeal.- Where the Corporation has
presented an appeal against an order of the Employees' Insurance
Court, that Court may, and if so directed by the High Court shall,
pending the decision of the appeal, withhold the payment of any sum
directed to be paid by the order appealed against.
---------------------------------------------------------------------
1. Subs. by Act 45 of 1984, s. 9 (w.e.f. 27-1-1985).
2. Subs. by Act 29 of 1989, s. 31 (w.e.f. 20-10-1989).
262
CHAP
PENALTIES
CHAPTER VII
PENALTIES
84.
Punishment for false statement.
84. Punishment for false statement.- Whoever, for the purpose of
causing any increase in payment or benefit under this Act, or for the
purpose of causing any payment or benefit to be made where no payment
or benefit is authorized by or under this Act, or for the purpose of
avoiding any payment to be made by himself under this Act or enabling
any other person to avoid any such payment, knowingly makes or causes
to be made any false statement or false representation, shall be
punishable with imprisonment for a term which may extend to 1*[six
months] or with fine not exceeding 1*[two thousend] rupees, or with
both:
2*[Provided that where an insured person is convicted under this
section, he shall not be entitled for any cash benefit under this Act
for such period as may be prescribed by the Central Government].
85.
Punishment for failure to pay contributions, etc.
85. Punishment for failure to pay contributions, etc.- If any
person--
(a) fails to pay any contribution which under this Act he is
liable to pay, or
(b) deducts or attempts to deduct from the wages of an
employee the whole or any part of the employer's
contribution, or
(c) in contravention of section 72 reduces the wages or any
privileges or benefits admissible to an employee, or
(d) in contravention of section 73 or any regulation
dismisses, discharges, reduces or otherwise punishes an
employee, or
(e) fails or refuses to submit any return required by the
regulations, or makes a false return, or
(f) obstructs any Inspector or other official of the
Corporation in the discharge of his duties, or
(g) is guilty of any contravention of or non-compliance with
any of the requirements of this Act or the rules or the
regulations in respect of which no special penalty is
provided,
3*[he shall be punisahble--
4*[(i) where he commits an offence under clause (a), with
imprisonment for a term which may extend to three years but--
(a) which shall not be less than one year, in case of failure to
pay the employee's contribution which has been deducted by him from
the employee's wages and shall also be liable to fine of ten thousand
rupees;
(b) which shall not be less than six months, in any other case
and shall also be liable to fine of five thousand rupees:
Provided that the Court may, for any adequate and special reasons
to be recorded in the judgment, impose a sentence of imprisonment for
a lesser term;
(ii) where he commits an offence under any of the clauses (b) to
(g) (both inclusive), with imprisonment for a term which may extend to
one year or with fine which may extend to four thousand rupees, or
with both.]
and shall also be liable to fine which may extend to two thousand
rupees:
---------------------------------------------------------------------
1. Subs. by Act 29 of 1989 s. 32 (w.e.f. 20-10-1989).
2. Ins. by s. 32 ibid. (w.e.f.------).
3. Subs. by Act 38 of 1975, s. 4, for certain words (w.e.f. 1-9-
1975).
4. Subs. by Act 29 of 1989, s. 33 (w.e.f. 20-10-1989).
263
85A.
Enhanced punishment in certain cases after previous conviction.
1*[85A. Enhanced punishment in certain cases after previous
conviction.- Whoever, having been convicted by a court of an offence
punishable under this Act, commits the same offence shall, for every
such subsequent offence, be punishable with imprisonment for a term
which may extend to 2*[two years and with fine of five thousand
rupees]:
Provided that where such subsequent offence is for failure by the
employer to pay any contribution which under this Act he is liable to
pay, he shall, for every such subsequent offence, be punishable with
imprisonment for a term which may extend to 2*[five years but which
shall not be less than two years and shall also be liable to fine of
twenty-five thousand rupees].
85B.
Power to recover damages.
85B. Power to recover damages.- (1) Where an employer fails to pay
the amount due in respect of any contribution or any other amount
payable under this Act, the Corporation may recover 3*[from the
employer by way of penalty such damages not exceeding the amount of
arrears as may be specified in the regulations]:
Provided that before recovering such damages, the employer shall
be given a reasonable opportunity of being heard:
4*[Provided further that the Corporation may reduce or waive the
damages recoverable under this section in relation to an establishment
which is a sick industrial company in respect of which a scheme for
rehabilitation has been sanctioned by the Board for Industrial and
Financial Reconstruction established under section 4 of the Sick
Industrial Companies (Special Provisions) Act, 1985 (1 of 1986),
subject to such terms and conditions as may be specified in
regulations.]
(2) Any damages recoverable under sub-section (1) may be
recovered as an arrear of land revenue. 5*[or under section 45-C to
section 45-I].
85C.
Power of court to make orders.
85C. Power of court to make orders.- (1) Where an employer is
convicted of an offence for failure to pay any contribution payable
under this Act, the court may, in addition to awarding any punishment,
by order, in writing, require him within a period specified in the
order (which the court may if it thinks fit and on application in that
behalf, from time to time, extend), to pay the amount of contribution
in respect of which the offence was committed. 6*[and to furnish the
return relating to such contributions].
(2) Where an order is made under sub-section (1), the employer
shall not be liable under this Act in respect of the continuation of
the offence during the period or extended period, if any, allowed by
the court, but if, on the expiry of such period or extended period, as
the case may be, the order of the court has not been fully complied
with, the employer shall be
---------------------------------------------------------------------
1. Ins. by Act 38 of 1975, s. 5 (w.e.f. 1-9-1975).
2. Subs. by Act 29 of 1989, s. 34 (w.e.f. 20-10-1989).
3. Subs. by s. 35, ibid. (w.e.f. 1-1-1992).
4. Ins. by s. 35, ibid. (w.e.f. 1-1-1992).
5. Added by s. 35, ibid. (w.e.f. 1-1-1992).
6. Added by s. 36 ibid. (w.e.f. 20-10-1989).
264
deemed to have committed a further offence and shall be punishable
with imprisonment in respect thereof under section 85 and shall also
be liable to pay fine which may extend to 1*[one thousand] rupees for
every day after such expiry on which the order has not been complied
with.]
86.
Prosecutions.
86. Prosecutions.- (1) No prosecution under this Act shall be
instituted except by or with the previous sanction of the Insurance
Commissioner 2*[or of such other officer of the Corporation as may be
authorized in this behalf by the 3*[Director General of the
Corporation]].
4*[(2) No court inferior to that of a Metropolitan Magistrate or
judicial Magistrate of the First Class shall try any offence under
this Act.]
(3) No Court shall take cognizance of any offence under this Act
except on a complaint made in writing in respect thereof 5***.
86A.
Offences by companies.
6*[86A. Offences by companies.- (1) If the person committing an
offence under this Act is a company, every person, who at the time the
offence was committed was incharge of, and was responsible to, the
company for the conduct of the business of the company, as well as the
company, shall be deemed to be guilty of the offence and shall be
liable to be proceeded against and punished accordingly:
Provided that nothing contained in this sub-section shall render
any person liable to any punishment, if he proves that the offence was
committed without his knowledge or that he exercised all due diligence
to prevent the commission of such offence.
(2) Notwithstanding anything contained in sub-section (1), where
an offence under this Act has been committed with the consent or
connivance of, or is attributable to, any neglect on the part of, any
director or manager, secretary or other officer of the company, such
director, manager, secretary or other officer shall be deemed to be
guilty of that offence and shall be liable to be proceeded against and
punished accordingly.
Explanation.--For the purposes of this section,--
(i) "company" means any body corporate and includes a firm
and other associations of individuals; and
(ii) "director" in relation to--
(a) a company, other than a firm, means the
managing director or a whole-time director;
(b) a firm means a partner in the firm.]
CHAP
MISCELLANEOUS
CHAPTER VIII
MISCELLANEOUS
87.
Exemption of a factory or establishment or class of factories
orestablishments.
87. Exemption of a factory or establishment or class of factories
or establishments.-The appropriate Government, may, by notification in
the Official Gazette and subject to such conditions as may be
specified in the notification, exempt any factory or establishment or
class of factories or establishments in any specified area from the
operation of this Act for a period not exceeding one year and may from
time to time by like notification renew any such exemption for periods
not exceeding one year at a time.
88.
Exemption of persons or class of persons.
88. Exemption of persons or class of persons.- The appropriate
Government may, by notification in the Official Gazette and subject to
such conditions as it may deem fit to impose, exempt any persons or
class of persons employed in any factory or establishment or class of
factories or establishments to which this Act applies from the
operation of the Act.
89.
Corporation to make representation.
89. Corporation to make representation.- No exemption shall be
granted or renewed under section 87 or section 88, unless a reasonable
opportunity has been given to the Corporation to make any
representation it may wish to make in regard to the proposal and such
representation has been considered by the appropriate Government.
90.
Exemption of factories or establishments belonging to Government orany local
authority.
90. Exemption of factories or establishments belonging to
Government or any local authority.- The appropriate Government may
7*[after consultation with the Corporation,] by notification in the
Official Gazette and subject to such conditions as may be specified in
the notification, exempt any factory or establishment belonging to
8*** any local authority 7*[from
---------------------------------------------------------------------
1. Subs. by Act 29 of 1989, s. 36 (w.e.f. 20-10-1989).
2. Ins. by Act 53 of 1951, s. 22.
3. Subs. by Act 44 of 1966, s. 35, for "Central Government" (w.e.f.
17-6-1967).
4. Subs. by Act 29 of 1989, s. 37 (w.e.f. 20-10-1989).
5. Omitted by s. 37, ibid. (w.e.f. 20-10-1989).
6. Ins. by s. 38, ibid. (w.e.f. 20-10-1989).
7. Ins. by Act 44 of 1966, s. 36 (w.e.f. 17-6-1967).
8. Omitted by Act 29 of 1989, s. 39 (w.e.f. 20-10-1989).
265
the operation of this Act], if the employees in any such factory or
establishment are otherwise in receipt of benefits substantially
similar or superior to the benefits provided under this Act.
91.
Exemption from one or more provisions of the Act.
91. Exemption from one or more provisions of the Act.- The
appropriate Government may, with the consent of the Corporation, by
notification in the Official Gazette, exempt any employees or class of
employees in any factory or establishment or class of factories or
establishments from one or more of the provisions relating to the
benefits provided under this Act.
91A.
Exemptions to be either prospective or retrospective.
1*[91A. Exemptions to be either prospective or retrospective.- Any
notification granting exemption under section 87, section 88, section
90 or section 91 may be issued so as to take effect either
prospectively or retrospectively on such date as may be specified
therein.]
91B.
Misuse of benefits.
2*[91B. Misuse of benefits.- If the Central Government is
satisfied that the benefits under this Act are being misused by
insured persons in a factory or establishment, that Government may, by
order, published in the Official Gazette, disentitle such persons from
such of the benefits as it thinks fit:
Provided that no such order shall be passed unless a reasonable
opportunity of being heard is given to the concerned factory or
establishment, insured persons and the trade unions registered under
the Trade Unions Act, 1926 (16 of 1926) having members in the
factory or establishment.
91C.
Writing off of losses.
91C. Writing off of losses.- Subject to the conditions as may be
prescribed by the Central Government, where the Corporation is of
opinion that the amount of contribution, interest and damages due to
the Corporation is irrecoverable, the Corporation may sanction the
writing off finally of the said amount.]
92.
Power of Central Government to give directions.
92. Power of Central Government to give directions.- 3*[(1)] The
Central Government may give directions to a State Government as
to the carrying into execution of this Act in the State.
4*[(2) The Central Government may, from time to time, give such
directions to the Corporation as it may think fit for the efficient
administration of the Act, and if any such direction is given, the
Corporation shall comply with such direction.]
93.
Corporation officers and servants to be public servants.
93. Corporation officers and servants to be public servants.-All
officers and servants of the Corporation shall be deemed to be public
servants within the meaning of section 21 of the Indian Penal Code
(45 of 1860).
93A.
Liability in case of transfer of establishment.
5*[93A. Liability in case of transfer of establishment.- Where an
employer, in relation to a factory or establishment, transfers that
factory or establishment in whole or in part, by sale, gift, lease or
licence or in any other manner whatsoever, the employer and the person
to whom the factory or establishment is so transferred shall jointly
and severally be liable to pay the amount due in respect of any
contribution or any other amount payable under this Act in respect of
the periods up to the date of such transfer:
Provided that the liability of the transferee shall be limited to
the value of the assets obtained by him by such transfer.]
94.
Contributions, etc., due to Corporation to have priority over otherdebts.
94. Contributions, etc., due to Corporation to have priority over
other debts.- There shall be deemed to be included among the debts
which, under section 49 of the Presidency-towns Insolvency Act, 1909
(3 of 1909). or under section 61 of the Provincial Insolvency Act,
1920 (5 of 1920), 6*[or under any law relating to insolvency in force
7*[in the territories which, immediately before the 1st November, 1956
were comprised in a Part B State]], 8*[or under section 530 of the
Companies Act, 1956 (1 of 1956.)], are, in the distribution of the
---------------------------------------------------------------------
1. Ins. by Act 44 of 1966, s. 37 (w.e.f. 17-6-1967).
2. Ins. by Act 29 of 1989, s. 40 (w.e.f. 20-10-1989)
3. Renubered by s. 41, ibid. (w.e.f. 20-10-1989).
4. Ins. by s. 41, ibid. (w.e.f. 20-10-1989).
5. Ins. by Act 38 of 1975, s. 6 (w.e.f. 1-9-1975).
6. Ins. by Act 53 of 1951, s. 23.
7. Subs. by the Adaptation of Laws (No. 3) Order, 1956, for "in a
Part B State".
8. Subs. by Act 29 of 1989, s. 42 (w.e.f. 20-10-1989).
266
property of the insolvent or in the distribution of the assets of a
company being wound up, to be paid in priority to all other debts, the
amount due in respect of any contribution or any other amount payable
under this Act the liability wherefor accured before the date of the
order of adjudication of the insolvent or the date of the winding up,
as the case may be.
94A.
Delegation of powers.
1*[94A. Delegation of powers.- The Corporation, and, subject to
any regulations made by the Corporation in this behalf, the Standing
Committee may direct that all or any of the powers and functions which
may be exercised or performed by the Corporation or the Standing
Committee, as the case may be, may, in relation to such matters and
subject to such conditions, if any, as may be specified, be also
exercisable by any officer or authority subordinate to the
Corporation.]
95.
Power of Central Government to make rules.
95. Power of Central Government to make rules.- (1) The Central
Government may, 2*[after consultation with the Corporation and]
subject to the condition of previous publication, make rules3* not
inconsistent with this Act for the purpose of giving effect to the
provisions thereof.
(2) In particular and without prejudice to the generality of the
foregoing power, such rules may provide for all or any of the
following matters, namely:--
4*[ (a) the limit of wages beyond which a person shall not be
deemed to be an employee;
(ab) the limit of maximum monthly salary for the purpose of sub-
section (1) of section 17;]
5*[(ac)] the manner in which 4*[appointments] and elections of
members of the Corporation, the Standing Committee and the Medical
Benefit Council shall be made;
(b) the quorum at meetings of the Corporation, the Standing
Committee and the Medical benefit Council and the
minimum number of meetings of those bodies to be held
in a year;
(c) the records to be kept of the transaction of business by
the Corporation, the Standing Committee and the Medical
Benefit Council;
(d) the powers and duties of the 6*[Director General and the
Financial Commissioner] and the conditions of their
service;
(e) the powers and duties of the Medical Benefit Council ;
4*[(ea) the types of expenses which may be termed as
administrative expenses, the percentage of income of the Corporation
which may be spent for such expenses;
(eb) the rates of contributions and limits of wages below which
employees are not liable to pay contribution;
(ec) the manner of calculation of the average daily wage;
(ed) the manner of certifying the certificate to recover amount
by the Recovery Officer;
(ee) the amount of funeral expenses;
(ef) the qualifications, conditions, rates and period of sickness,
benefit, maternity benefit, disablement benefit and dependents
benefit;
(eg) the conditions for grant of medical benefits for insured
persons who cease to be in insurable employment on account of
permanent disablement;
(eh) the conditions for grant of medical benefits for persons who
have attained the age of Superannuation;]
5*[el)] the manner in which and the time within which appeals may
be filed to medical appeal tribunals or Employees' Insurance Courts;]
(f) the procedure to be adopted in the execution of contracts;
---------------------------------------------------------------------
1. Ins. by Act 53 of 1951, s. 24.
2. Ins. by Act 44 of 1966, s. 38 (w.e.f. 28-1-1968).
3. For the Employees' State Insurance (Central) Rules, 1950, see
Gazette of India, 1950, Pt, II, Sec. 3, p. 202.
4. Ins. by Act 29 of 1989 s. 43 (w.e.f. 20-10-1989).
5. Relettered by s. 43, ibid. (w.e.f. 21-10-1989).
6. Subs. by s. 43, ibid. (w.e.f. 21-10-1989).
266A
(g) the acquisition, holding and disposal of property by the
Corporation;
(h) the raising and repayment of loans;
(i) the investment of the funds of the Corporation and of
any provident or other benefit fund and their transfer
or realisation ;
(j) the basis on which the periodical valuation of the
assets and liabilities of the Corporation shall be
made;
(k) the bank or banks in which the funds of the Corporation
may be deposited, the procedure to be followed in
regard to the crediting of moneys accruing or payable
to the Corporation and the manner in which any sums may
be paid out of the Corporation funds and the officers
by whom such payment may be authorized;
(l) the accounts to be maintained by the Corporation and the
forms in which such accounts shall be kept and the
times at which such accounts shall be audited;
(m) the publication of the accounts of the Corporation and
the report of auditors, the action to be taken on the
audit report, the powers of auditors to disallow and
surcharge items of expenditure and the recovery of sums
so disallowed or surcharged;
(n) the preparation of budget estimates and of supplementary
estimates and the manner in which such estimates shall
be sanctioned and published;
(o) the establishment and maintenance of provident or other
benefit fund for officers and servants of the
Corporation; 1***
2*[(oa) the period of non-entitlement for cash benefit in case of
conviction of an insured person ;]
(p) any matter which is required or allowed by this Act to
be prescribed by the Central Government.
3*[(2A) The power to make rules conferred by this section shall
include the power to give retrospective effect, from a date not
earlier than the date of commencement of this Act, to the rules or any
of them but no retrospective effect shall be given to any rule so as
to prejudicially affect the interest of any person other than the
Corporation to whom such rule may be applicable.]
(3) Rules made under this section shall be published in the
Official Gazette and thereupon shall have effect as if enacted in this
Act.
4*[(4) Every rule made under this section shall be laid, as soon
as may be after it is made, before each House of Parliament while it
is in session for a total period of thirty days which may be comprised
in one session 5*[or in two or more successive sessions, and if,
before the expiry of the session immediately following the session or
the successive sessions aforesaid] both Houses agree in making any
modification in the rule of both
---------------------------------------------------------------------
1. Omitted by Act 29 of 1989, s. 43 (w.e.f. 20-10-1989).
2. Ins. by s. 43, ibid. (w.e.f. 20-10-1989).
3. Ins. by Act 45, of 1984, s. 10 (w.e.f. 27-1-1985).
4. Ins. by Act 44 of 1966, s. 38 (w.e.f. 28-1-1968).
5. Subs. by Act 38 of 1975, s. 7, for certain words (w.e.f. 1-9-
1975).
266B
Houses agree that the rule should not be made, the rule shall
thereafter have effect only in such modified form or be of no effect,
as the case may be; so, however, that any such modification or
annulment shall be without prejudice to the validity of anything
previously done under that rule.]
96.
Power of State Government to make rules.
96. Power of State Government to make rules.- (1) The State
Government may, 1*[after consultation with the Corporation and]
subject to the condition of previous publication, make rules not
inconsistent with this Act in regard to all or any of the following
matters, namely:--
(a) the constitution of Employees' Insurance Courts, the
qualifications of persons who may be appointed Judges
thereof, and the conditions of service of such Judges;
(b) the procedure to be followed in proceedings before such
Courts and the execution of orders made by such Courts;
---------------------------------------------------------------------
1. Ins. by Act 44 of 1966, s. 39 (w.e.f. 28-1-1968).
267
(c) the fee payable in respect of applications made to the
Employees' Insurance Court, the costs incidental to the
proceedings in such Court, the form in which
applications should be made to it and the particulars
to be specified in such applications;
(d) the establishment of hospitals, dispensaries and other
institutions, the allotment of insured persons or their
families to any such hospital, dispensary or other
institution;
(e) the scale of medical benefit which shall be provided at
any hospital, clinic, dispensary or institution, the
keeping of medical records and the furnishing of
statistical returns;
(f) the nature and extent of the staff, equipment and
medicine that shall be provided at such hospitals,
dispensaries and institutions;
(g) the conditions of service of the staff employed at such
hospitals dispensaries and institutions; and
(h) any other matter which is required or allowed by this
Act to be prescribed by the State Government.
(2) Rules made under this section shall be published in the
Official Gazette and thereupon shall have effect as if enacted in this
Act.
1*[(3) Every rule made under this section shall be laid as soon
as may be after it is made, before each House of the State Legislature
where it consists of two Houses, or, where such Legislature consists
of one House, before that House.]
97.
Power of corporation to make regulations.
97. Power of Corporation to make regulations.-(1) The Corporation
may, 2*** subject to the condition of previous publications, make
regulations, not inconsistent with this Act and the rules made
thereunder, for the administration of the affairs of the Corporation
and for carrying into effect the provisions of this Act.
(2) In particular and without prejudice to the generality of the
foregoing power, such regulations may provide for all or any of the
following matters, namely:--
(i) the time and place of meetings of the Corporation, the
Standing Committee and the Medical Benefit Council and
the procedure to be followed at such meetings;
3*[(ia) the time within which and the manner in which a
factory or establishment shall be registered;]
(ii) the matters which shall be referred by the Standing
Committee to the Corporation for decision;
(iii) the manner in which any contribution payable under
this Act shall be assessed and collected;
---------------------------------------------------------------------
1. Ins. by Act 45 of 1984, s. 11 (w.e.f. 27-1-1985).
2. Ins. by s. 12, ibid. and omitted by Act 29 of 1989, s. 44
(w.e.f. 20-10-1989).
3. Ins. by Act 44 of 1966, s. 40 (w.e.f. 28-1-1968).
268
1*[(iiia) the rate of interest higher than twelve per cent. on
delayed payment of contributions;]
(iv) reckoning of wages for the purpose of fixing the
contribution payable under this Act;
2*[(iva) the register of employees to be maintained by the
immediate employer;
(ivb) the entitlement of sickness benefit or disablement benefit
for temporary disablement on any day on which person works
or remains on leave or on holiday and in respect of which
he receives wages or for any day on which he remains on
strike;]
(v) the certification of sickness and eligibility for any
cash benefit.
3*[(vi) the method of determining whether an insured person is
suffering from one or more of the diseases specified in the
Third
Schedule;]
(vii) the assessing of the money value of any benefit which
is not a cash benefit;
(viii) the time within which 4*[and the form and manner in
which] any claim for a benefit may be made and the
particulars to be specified in such claim;
(ix) the circumstances in which an employee in receipt of
disablement benefit may be dismissed, discharged,
reduced or otherwise punished;
(x) the manner in which and the place and time at which any
benefit shall be paid;
(xi) the method of calculating the amount of cash benefit
payable and the circumstances in which and the extent
to which commutation of disablement and dependant's
benefits, may be allowed and the method of calculating
the commutation value;
(xii) the notice of pregnancy or of confinement and notice
and proof of sickness;
5*[(xiia) specifying the authority competent to give
certificate of eligibility for maternity benefit;
(xiib) the manner of nomination by an insured woman for
payment of maternity benefit in case of her or her
child's death;
(xiic) the production of proof in support of claim for
maternity benefit or additional maternity benefit;]
(xiii) the conditions under which any benefit may be
suspended;
(xiv) the conditions to be observed by a person when in
receipt of any benefit and the periodical medical
examination of such persons;
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1. Subs. Act 29 of 1989, s. 44 (w.e.f. 20-10-1989).
2. Ins. by s. 44, ibid. (w.e.f. 20-10-1989).
3. Subs. by Act 44 of 1966, s. 40, for cl. (iv) (w.e.f. 28-1-1968).
4. Subs. by s. 40, ibid., for "and the form in which" (w.e.f. 28-1-
1968).
5. Ins. by s. 40, ibid. (w.e.f. 28-1-1968).
269
1* * * * *
(xvi) the appointment of medical practitioners for the
purposes of this Act, the duties of such practitioners
and the form of medical certificates;
2*[(xvia) the qualifications and experience which a person
should possess for giving certificate of sickness;
(xvib) the constitution of medical boards and medical appeal
tribunals;]
(xvii) the penalties for breach of regulations by fine (not
exceeding two days' wages for a first breach and not
exceeding three days' wages for any subsequent breach)
which may be imposed on employees;
3*[(xviia) the amount of damages to be recovered as penalty;
(xviib) the terms and conditions for reduction or waiver of
damages in relation to a sick industrial company;]
(xviii) the circumstances in which and the conditions subject to
which any regulation may be relaxed, the extent of such
relaxation, and the authority by whom such relaxation may
be granted;
4*[(xix) the returns to be submitted and the registers or
records to be maintained by the principal and immediate
employers, the forms of such returns, registers or
records, and the times at which such returns should be
submitted and the particulars which such returns,
registers and records should contain;]
(xx) the duties and power of Inspectors and other officers
and servants of the Corporation;
5*[(xxi) the method of recruitment, pay and allowances,
discipline, superannuation benefits and other
conditions of service of the officers and servants of
the Corporation other than the 6*[Director General and
Financial Commissioner]];
(xxii) the procedure to be followed in remitting
contributions to the Corporation ; and
(xxiii) any matter in respect of which regulations are
required or permitted to be made by this Act.
7*[(2A) The condition of previous publication shall not apply to
any regulations of the nature specified in clause (xxi) of sub-section
(2).]
(3) Regulations made by the Corporation shall be published in the
Gazette of India and thereupon shall have effect as if enacted in this
Act.
8*[(4) Every regulation shall, as soon as may be, after it is
made by the Corporation, be forwarded to the Central Government and
that Government shall cause a copy of the same to be laid before each
House of Parliament, while it is in session for a total period of
thirty days, which may be comprised in one session or in two or more
successive sessions, and if, before the expiry of the sessiion
immediatly following the session the successive sessions
aforesaid, both Houses agree in making any modification in the
regulation or both Houses agree that the regulation should not be
made, the regulation shall thereafter have effect only in such
modified form or be of no effect, as the case may be; so, however,
that any such modification or annulment shall be without prejudice to
the validity of any thing previously done under that regulation.]
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1. Omitted, by Act 29 of 1989, s. 44 (w.e.f. 20-10
1989).
2. Ins. by Act 44 of 1966, s. 40 (w.e.f. 28-1-1968).
3. Ins. by s. 44, ibid. (w.e.f. 20-10-1989).
4. Subs. by Act 53 of 1951, s. 25, for cl. (xix).
5. Subs. by s. 25, ibid., for the former clause.
6. Subs. Act 29 of 1989 s. 44 (w.e.f. 20-10-1989).
7. Ins. by Act 53 of 1951, s. 25.
8. Ins. by Act 45 of 1984 s. 12 (w.e.f. 27-1-1985).
270
98.
[Repealed.]
98.[Corporation may undertake duties in Part B. States.]-
Rep. by the Employees' State Insurance (Amendment) Act, 1951 (53 of
1951), s. 26.
99.
Medical care for the families of insured persons.
1*[99. Medical care for the families of insured persons.- At any
time when its funds so permit, the Corporation may provide or
contribute towards the cost of medical care for the families of
insured persons.]
99A.
Power to remove difficulties.
2*[99A. Power to remove difficulties.- (1) If any difficulty
arises in giving effect to the provisions of this Act, the Central
Government may, by order published in the Official Gazette, make such
provisions or give such directions, not inconsistent with the
provisions of this Act, as appears to it to be necessary or expedient
for removing the difficulty.
(2) Any order made under this section shall have effect
notwithstanding anything inconsistent therewith in any rules or
regulations made under this Act.]
100.
Repeals and savings.
3*[100. Repeals and savings.- If, immediately before the day on
which this Act comes into force 4*[in any part of the territories
which, immediately before the 1st November, 1956, were comprised in a
Part B State], there is in force in 5*[that part] any law
corresponding to this Act, that law shall, on such day, stand
repealed:
Provided that the repeal shall not effect--
(a) the previous operations of any such law, or
(b) any penalty, forfeiture or punishment incurred in
respect of any offence committed against any such law,
or
(c) any investigation or remedy in respect of any such
penalty, forfeiture or punishment;
and any such investigation, legal proceeding or remedy may be
instituted, continued or enforced and any such penalty, forfeiture or
punishment may be imposed, as if this Act had not been passed:
Provided further that subject to the preceding proviso anything
done or any action taken under any such law shall be deemed to have
been done or taken under the corresponding provision of this Act and
shall continue in
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1. Subs. by Act 29 of 1989, s. 45 (w.e.f ..).
2. Ins. by Act 44 of 1966, s. 41 (w.e.f. 17-6-1967).
3. Ins. by Act 53 of 1951, s. 27.
4. Subs. by the Adaptation of Laws (No. 3) Order, 1956, for "in a
Part B State".
5. Subs. ibid., for "that State".
271
force accordingly unless and until superseded by anything done or any
action taken under this Act.]
274/1
The Frist Schedule. Rep. by the Employees' State Insurance (Amendment) Act
1989, s. 46.
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