It is really important to have health insurance as this can save you from potentially high bills during a medical emergency. This can surely be a lifesaver for you as you can also receive a good treatment because of ESIC Registration. Have you ever heard about ESI? Well, if not then let us tell you that this is health insurance and to begin with, we would like to tell you that ESI is Employee State Insurance.
This insurance is actually managed and takes care of by the Employee State Insurance Corporation. This Corporation falls under the Ministry of Labor and Employment which is a part of Government of India. As per the rule, the company needs to register their employee under ESIC if they have a workforce of 10 or more humans. In addition to this, there is another condition here, the maximum salary of the employee should not be more than Rs 15,000 to be eligible for ESIC benefits.
You now have a brief idea of ESIC. Let us now look at the process, documents required and benefits of enrolling under ESIC.
What is the process of Enrolling under ESIC?
To begin with, you must know that the employer is liable to make a contribution of 4.75% of the total monthly salary and the employee also needs to pay 1.75% of his salary to ESIC to enroll under the insurance program. There is one exception here for the employee and that is when the salary of the employee is less than Rs 100 per day. In such a case, the employee is not liable to contribute anything under ESIC.
There are 6 different types of entities that are covered under ESIC and these are
- Cinema Halls
- Newspaper Firms.
- Private Educational Institutes.
- Restaurants and Hotels
- Road Motor Transport Companies
- Shops
In order to get the ESIC Registration, you can follow the process listed below.
- The company needs to Submit Form 1 along with the list of documents listed in the next section.
- Once form 1 is verified, a 17 digit number is issued to the company.
- Now, the employee needs to provide with the details of the family members along with Photos and the employer will have to submit these documents to ESIC.
- After the submission, ESIC will issue the Registration cards to the employee and their family members.
What are the Documents Required for Enrolling under ESIC?
The documents required for enrolling under ESIC are
- Canceled Cheque of Bank Accounts
- Form 1 for Employer Registration
- List of Directors and Shareholders
- List of Employee along with Personal Details, Compensation Details& Attendance of Employee
- Memorandum of Association and Articles of Associations of Company
- PAN Card of Establishment
- Partnership Deed and Registration Certificate if the company is on Partnership.
- Registration Certificate under Factory Act or Shop and Establishment Act.
What are the Benefits of Enrolling under ESIC?
There are several benefits offered under ESIC and these are
- In case of a medical issue, the ESIC covers the employee and the registered family members under ESI. The members can obtain treatment at any ESI Hospital with help of the insurance.
- The employee is eligible for Sickness Benefits and this amount is capped at 70% of the salary. An employee can obtain these benefits for a maximum period of 91 days.
- ESIC also guarantees the maternity leaves to the pregnant employee.
- If in case the employee suffers disability or if there is an event of death at the workplace, the ESI is liable to pay 90% of the salary to the dependents after the event every month.
- ESIC also takes care of the medical expense in old age and in addition to this, ESIC also takes care of funeral expense when required.
Conclusion
This was all about the ESIC Registration. It should be noted that it is the duty of the employer to notify ESIC about the change in the status of the employment if any. In addition to this, the employer needs to submit the details of attendance, details of wages and Form 6 to the ESIC every year.
If there is any accident at the workplace, the Employer also needs to submit the same every year before the closure.
Santosh Kumar is a Professional SEO and Blogger, With the help of this blog he is trying to share top 10 lists, facts, entertainment news from India and all around the world.