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ESI Corporation is a leading provider of software solutions for product development and manufacturing. Founded in 1973, the company has been serving the automotive, aerospace, and industrial equipment industries for over 40 years.
ESI's expertise lies in the development of digital solutions that help companies design, test, and validate their products. Their software tools enable companies to simulate and analyze the behavior of their products under various conditions.
ESI Corporation is headquartered in Paris, France, with offices and partners worldwide. The company's global presence allows it to serve clients across different regions and industries.
ESI Corporation Structure
ESI Corporation is a global company with a presence in over 40 countries.
The company has a flat organizational structure, allowing for efficient decision-making and swift implementation of strategies.
Its headquarters is located in Portland, Oregon, USA.
ESI Corporation operates through several business units, each focused on a specific industry or market.
These business units enable the company to tailor its solutions to meet the unique needs of different clients and markets.
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The company's structure allows for a high degree of autonomy, enabling business units to respond quickly to changing market conditions.
This autonomy is a key factor in ESI Corporation's ability to innovate and stay competitive.
The company's global presence and diverse business units enable it to leverage its expertise and resources to deliver value to clients worldwide.
Membership and Contributions
To maintain membership in the ESIC, you must attend meetings regularly. Failing to attend three consecutive meetings can lead to cessation of membership.
The primary employer is responsible for paying both their own and their employees' contributions. This includes employees who are directly employed or working through an immediate employer.
If an employee fails to pay their contributions, the employer can recover the amount by deducting it from the employee's wages. This is the only way the employer can recover the contribution.
The employer bears the transfer costs of paying contributions to the Corporation. This includes all the expenses associated with transferring the payment.
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In cases where an employer or employee fails to represent their qualification, they can be removed from membership. This is decided by the Central Government.
The Corporation can determine the contribution amount payable to employees if the accounting statements of the factory/establishment are not submitted or maintained. However, the person in charge must be given a reasonable opportunity to be heard before this procedure takes place.
Employees' Insurance Fund
The Employees' Insurance Fund is the backbone of the ESI Corporation, providing the necessary resources to fulfill its functions. All contributions paid under the Act and other money received by the Corporation are paid into this fund to be held and administered by the Corporation.
The fund is replenished through grants, donations, or gifts from the government. This ensures a steady stream of income to support the Corporation's activities.
The ESI Fund is responsible for maintaining the expenses of the Corporation, which can be categorized into several key areas. These include payment of benefits and provision of medical treatment to insured persons and their families.
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Here are the specific expenses that the ESI Fund covers:
- Payment of benefits and provision of medical treatment and attendance to insured persons and their families, if required.
- 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.
- Payment of salaries, leave and joining time allowances, travelling and compensatory allowances, gratuities and compassionate allowances, pensions, etc.
- 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 their families, if required.
- Payment of contributions to any State Government, local authority or any private body or individual, towards the cost of medical treatment and attendance provided to insured persons and their families, if required.
Powers and Delegation
The ESI Corporation has extensive powers to carry out its functions and duties under the Act. It can appoint staff members and officers to carry out its business effectively, and bestow benefits like provident fund and gratuity on its staff.
The Corporation can also purchase and sell properties, raise loans, and invest its money with the Central Government's sanction. It has the power to determine the contribution amount that employers must pay for the benefit of employees.
The Director-General of the Corporation has to sign off on every decision it takes, and can appoint another officer to do so on their behalf. The Corporation can delegate its powers to authorized personnel, who can exercise these powers for a temporary period.
Authentication of Orders and Decisions
Authentication of orders and decisions is a crucial aspect of the Director-General's authority.
The Director-General's signature is the only requirement to authenticate an outgoing order or decision, making it a straightforward process.
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There is no other way to authenticate or enforce an order, so having the Director-General's signature is essential.
The Director-General can temporarily delegate his authority to another officer, allowing them to authenticate orders in his place.
The signature of the authorised officer will suffice to authenticate an order in this situation, making it a convenient option for when the Director-General is unavailable.
Power for Insured Health Measures
The Corporation has the power to promote measures for the health of insured persons. This includes initiatives that promote health and welfare amongst employees, as well as rehabilitation and re-employment for past employees who were injured or disabled in the course of employment.
The funding and expenditure for these initiatives are at the discretion of the Central Government.
Delegation of Powers
The ESIC bodies have the authority to delegate their powers to authorized personnel at their discretion. This delegation of powers is temporary and only granted for a specific period.
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The ESIC bodies can delegate their powers to authorized personnel, but only for a temporary period. This allows them to efficiently manage their tasks and ensure that their functions are carried out effectively.
The ESIC bodies can exercise their delegated powers within the framework of the ESI Act. This ensures that the powers are used in accordance with the law and in the best interest of the beneficiaries.
The ESIC bodies can delegate their powers to authorized personnel, but only for specific tasks and within the limits of their authority. This helps to prevent any abuse of power and ensures that the powers are used responsibly.
Here are some key points to consider when it comes to the delegation of powers:
- The ESIC bodies have the authority to delegate their powers to authorized personnel.
- The delegation of powers is temporary and only granted for a specific period.
- The ESIC bodies can exercise their delegated powers within the framework of the ESI Act.
ESIC vs BAI
In the context of ESIC vs BAI, it's interesting to note that the Supreme Court of India stayed the applicability of the Employees' State Insurance to the Construction Workers.
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The Employees' State Insurance is a financial services company established in 1952, providing health insurance in India. It's a vital component of India's social security system.
The ESIC was created to provide financial assistance to workers in case of illness, injury, or death. This includes coverage for medical expenses, disability benefits, and other forms of financial support.
In the case of ESIC vs BAI, the Supreme Court's decision had significant implications for the construction industry in India. The court's stay on the applicability of the ESIC to construction workers meant that they would not be eligible for the benefits provided by the ESIC.
Here are some key features of the ESIC that are relevant to this case:
- Health insurance in India
- Labour relations in India
- Indian labour law
- Social security in India
ESI Corporation Act
The ESI Corporation Act established the Employees' State Insurance Corporation on 24 February, 1952, to maintain social security and grant relief to employees in medical emergencies.
The ESI Corporation is an autonomous organisation under the Ministry of Labour and Employment, Government of India, and has the authority to raise loans with the prior sanction of the central government.
The corporation can acquire movable and immovable property and all incomes from the property vest with the corporation. It can also set up hospitals either independently or in collaboration with state governments.
There are ESIC Medical Colleges, Hospitals and Dispensaries throughout the country, which are run directly by the corporation under the Ministry of Labour & Employment.
ESI Corporation Expansion
The ESI Corporation is planning a major expansion of its hospitals across the country.
They plan to modernize and upgrade existing ESI hospitals with up-to-date facilities for better patient care, including operation theatres, intensive care units, and state-of-the-art imaging services.
105 new hospitals are set to be established in the country as part of this expansion.
Ayush units will be established in ESI hospitals and dispensaries where the daily average allopathic OPD registration is more than 150 patients.
These Ayush units will be co-located with existing ESI allopathic hospitals having 500 beds or more, with 50 beds earmarked for the Ayush hospital.
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The ESI Corporation has also enhanced the sanctioned staff strength of ESIC hospitals, as per new norms.
If bed occupancy is more than 70% in ESIC/ESI Scheme (ESIS) hospitals for three consecutive years, the bed strength will be increased by 50%.
Super speciality services like Urology, Cardiology, and Oncology are already being provided by some existing ESIC hospitals.
Conclusion
The Employees' State Insurance Corporation is more than just a provider of medical benefits to employees. It's a complex organization with various aspects to manage.
The ESI Act controls many indirect aspects of managing the Corporation, such as sales proceedings and account management. This ensures that the Corporation runs efficiently.
The separation of powers amongst its various officers is also crucial for the Corporation's smooth functioning. This helps prevent any one person from having too much control.
The Corporation's ability to manage its sales proceedings, account management, and separation of powers amongst its officers is crucial for its overall success.
Frequently Asked Questions
What does ESI company do?
ESI helps industries make informed decisions by providing customized solutions that use advanced physics modeling and virtual prototyping. They enable companies to navigate complexity and make timely decisions with confidence.
Who are employees under ESI?
Employees under ESI are those working in factories and establishments with 10 or more persons, including Road Transport, Hotels, Restaurants, and Educational/Medical Institutions, among others
What is ESI in US healthcare?
ESI stands for Employer-Sponsored Insurance, a common type of health coverage in the US, covering over 181 million Americans. It's the primary source of health insurance for nearly half of the US population.
Sources
- https://www.toppr.com/guides/fundamentals-of-laws-and-ethics/employees-state-insurance-act-1948/esi-corporation/
- https://blog.ipleaders.in/employees-state-insurance-act-1948/
- https://en.wikipedia.org/wiki/Employees%27_State_Insurance
- https://www.medindia.net/directories/hospitals/esi-hospital-esi-corporation-ghaziabad-uttar-pradesh-26806.htm
- https://medicaldialogues.in/news/health/hospital-diagnostics/expansion-of-esi-hospitals-esi-corporation-to-set-up-105-hospitals-132395
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