Page 84 - DMGT306_MERCANTILE_LAWS_II

Unit 4: The Employees’ State Insurance Act, 1948: Definitions, Scope and Objective

4.5 Summary Notes

 The comprehensive and well-designed social security programme is administered by an
apex corporate body called the Employee State Insurance Corporation.

 It comprises members representing vital interest groups that include, employee, employers,
the Central and State Government, besides, representatives of parliament and medical
profession.
 The corporation is headed by the Union Minister of Labour, as its chairman, whereas, the
Director General, appointed by the Central Government functions as its Chief Executive
Officer.

 A standing committee constituted from amongst the members of the corporation, Acts as
an executive body.

 The medical benefit council, constituted by the central government, is yet another statuary
body that advises the corporation on matters related to effective delivery of services to the
beneficiary population.
 The corporation with its central headquarters at New Delhi operates through a network of
26 regional and sub-regional offices located in various States.
 The respective state governments take care of the administration of medical benefit except
in case of Delhi and Noida, greater Noida areas of Uttar Pradesh, where, the corporation
administers medical facilities directly.

4.6 Keywords

Applicability: Relevance by virtue of being applicable to the matter at hand.

Corporation: Corporations are business entities are separate from That their owners, corporations
have shareholders, and the shares may be privately or closely held.

Coverage: The initiation of coverage leads to the subsequent publishing of reports, research and
recommendations related to the issue.
Disablement: A disability may be physical, cognitive, mental, sensory, emotional, and
developmental or some combination of these.
Employee: An individual who works part-time or full-time under a contract of employment,
whether oral or written, express or implied, and has recognized rights and duties.
Insurance: Insurance is the equitable transfer of the risk of a loss, from one entity to another in
exchange for payment.
Maternity: The quality of having or showing the tenderness and warmth and affection of or
befitting a mother.
Penalty: A punishment imposed for violating a law or agreement; money one will pay for
breaking a law or violating part or all of the terms of a contract.
Wage Ceiling: Highest pay possible within a particular wage bracket and is agreed upon as the
upper range of a wage bracket.

Wages: Monetary remuneration computed on hourly, daily, weekly, or piece work basis.

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