ESI Full Form

What is the full form of ESI?

The full form of ESI is the Employees’ State Insurance. ESI is a health insurance plan designed to offer Indian workers medical and cash benefits. It is controlled and regulated by the ESIC (Employees State Insurance Corporation). ESIC is an autonomous corporate body under the Ministry of Labor and Employment of the Indian Government.

History of ESI

  • ESI was established on 24 February 1952 to act as an Indian employee health insurance service and is managed entirely by the ESIC under the rules specified in the ESI Act of 1948.
  • In March 1943 the Indian Government hired Professor B.N. Adarkar to prepare a report for Indian labourers on HIS (health insurance scheme).
  • The statement later became the outcome of the establishment of the ESI Act, 1948, which outlined the need to protect Indian workers from contingency plans such as sickness, temporary or permanent physical disability, maternity, occupational injury-related death that directly affected their earnings.
  • The Employee ESI scheme was first implemented on 24 February 1952 in Kanpur. The ESI Act was initially only for labourers, but later it was beneficial to all employees earning less than specific wages(15000/-).

Key objects of ESI

  • The ESI Act, 1948 was explicitly established to provide financial compensation during contingencies such as temporary or permanent disability, maternity, illness, death resulting from injury at work, etc.
  • The ESI Act, 1948 offers medical benefits for Indian labourers who serve not only in factories but also in companies with at least ten workers and their dependents as well.

Organizations covered as per ESI

  • The ESI scheme is mandatory all over India apart from Arunachal Pradesh and Manipur states.
  • The ESI plan for Workers is now being expanded to preview theatres, cinemas, hotels, restaurants, stores, newspaper outlets, etc.
  • The ESI plan for Workers is also available in medical establishments and private educational institutions which have at least ten workers.

Required documents for ESI registration

The necessary document for ESI registrations is provided below.

  • PAN card of the business establishment or company
  • The business establishment or companies address proof record.
  • If the corporation is Private Limited, then copies of the registration certificate must be submitted.
  • Registration Certificate for every organization.
  • A detailed list of employees, along with the monthly income they get.
  • List of associates, directors and shareholders of the company.
  • The company’s bank statements together with shreds of proof that show when its operations began the same.

ESI Benefits

ESI provides medical coverage to Indian workers during any form of accident, impairment, sickness, pregnancy or even death in the workplace etc., and economic benefits during unemployment. The ESI system’s benefits are outlined below

  1. Physical Disability Benefits
  2. Maternity Benefits
  3. Medical Benefits
  4. Sickness Benefit
  5. Dependent Benefit
  6. Unemployment Allowance.


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