75th Anniversary of Employees’ State Insurance Corporation (ESIC)

Source: PIB

Subject: Polity

Context: The Employees’ State Insurance Corporation (ESIC) has commenced its 75th Foundation Year celebrations, marking seven decades of social security service to workers in India.

About 75th Anniversary of Employees’ State Insurance Corporation (ESIC):

What it is?

• ESIC is a statutory social security body under the Ministry of Labour & Employment, Government of India.

• It manages the ESI Scheme, which provides comprehensive medical care and financial protection to employees against sickness, maternity, disablement, and death due to employment injury.

Established In:

• Act: The Employees’ State Insurance Act was promulgated in 1948.

• Inauguration: The scheme was officially launched on February 24, 1952 (celebrated annually as ESIC Foundation Day).

History:

• Genesis: The first document on social insurance in India was the Report on Health Insurance (1944) by Prof. B.P. Adarkar, who was known as Chhota Beveridge.

• Launch: Inaugurated in Kanpur and Delhi by then PM Pandit Jawaharlal Nehru, who was the first honorary insured person of the scheme.

• Leadership: Dr. C.L. Katial served as the first Director General of ESIC.

Key Functions:

• Medical Benefit: Provides full medical care (from primary to tertiary) to insured persons and their families.

• Sickness & Maternity Benefit: Cash compensation for loss of wages during periods of certified sickness or pregnancy.

• Disablement Benefit: Monthly pension for permanent disability arising out of employment injury.

• Dependents’ Benefit: Financial support to the dependents of an insured person who dies due to employment-related injury or occupational disease.

• Preventive Care: Newly introduced annual health check-ups for workers aged 40 years and above under the new Labour Codes.

Significance:

• It acts as a cornerstone of India’s social protection architecture, preventing poverty by protecting the family’s breadwinners.

• Through MoUs with NHA (convergence with Ayushman Bharat) and NABL (quality standards), it is modernizing healthcare delivery.