The promulgation of the ESI Act, 1948, in itself, was the first major legislation on social security in independent India that comprehensively enshrined some major resolutions of the ILO on social protection of industrial workers. Tailored to protect the interest and dignity of workers in times of physical or financial distress due to infirmity, loss of wages or earning capacity, the integrated social security scheme offers full medical facilities to the insured employees and their dependant family members. The scheme also provides social security benefits in cash, ranging from 50 percent to 100 percent of the wages, in times of ordinary sickness, protracted sickness, temporary disablement or permanent physical disablement, or death due to employment injury or occupational disease. Insured women are entitled to maternity benefit equal to full wages for a period of upto sixteen weeks.

    With dramatic growth in geographic reach, demographic coverage and applicability of the Act to new sectors of employment, the scheme today is a national phenomenon and has emerged as torch bearer of social security in India. Implemented at about 680 centres in the country so far, over 2.30 lakh employers now come under the purview of the Act. The total number of insured persons, entitled to health insurance cover, has gone up from one lakh in 1952 to over 86 lakh now. The total beneficiary population, that includes dependent family members of employees is well over 3 crore 42 lakh and represents about 4 percent of the country’s population.

    The huge infrastructural network created by the ESI Corporation over the last five decades, to service the ever increasing clientele comprises 138 ESI hospitals and 43 hospital annexes with about 22000 beds. Yet another 4000 beds are reserved in leading hospitals. Basic health care services are provided through 1443 ESI dispensaries, 337 diagnostic centres and about 3000 panel clinics. The medical infrastructure is run and managed by about 14000 doctors and specialists, 45000 paramedical staff and about 20,000 ministerial staff and executives. The Corporation has also established five occupational disease centres at Delhi, Kolkata, Chennai, Mumbai and Nagda over the last five years.

    For regular and timely flow of cash benefits to the beneficiaries, the Corporation operates through a wide spread network of about 880 Local offices and cash offices. The Corporation has so far established over 35 administrative offices at zonal, regional and sub regional level in 25 states and union territories.

    The health insurance scheme, run on the principle of pooling of risks and resources is fully financed by contributions of employees and employers. The employees contribute 1.75 percent of the wages whereas, the employers contribute 4.75 percent of the wages. Employees earning less than Rs.40 a day, are exempted from payment of contribution. The upper ceiling for purpose of coverage as of now is Rs.6500 per month. With the widening of coverage over the years the annual revenue of the Corporation from contribution income now is in the range of about Rs.1250 crore. About 85 percent of this income is ploughed back to the beneficiaries in the form of medical benefit and cash benefits.