How to register a New Employee in ESIC in India?

Employees’ State Insurance, abbreviated as ESI is undoubtedly one of the most promising social security cum employee insurance schemes. It is governed and managed by the Union Government of India with sole objective of welfare of the employees. The main motive behind registering new employee in ESIC is to provide him coverage of all his financial and the social security risks while working in the organized sector. The ESI registration is perhaps the most feasible and cost-effective way for an ordinary employee to cover all his social security risks is, to obtain an ESI registration.

Key takes of the ESI Scheme             

Employees’ State Insurance Corporation (ESIC) is an independent organization governed by the Ministry of Labour & Employment, Government of India.

• The ESIC runs the Employee’s State Insurance (ESI), which is a self-financing social security cum health insurance scheme for the Indian workers of the organized sector.
• This scheme provides complete medical cover to all the employees registered under the ESI Act, 1948^[1]. The ESI coverage is provided to the employee while the period of his inability to work, or while the period of healing of his health and restoring to the working capacity.
• This scheme provides the financial aid for compensation of the loss of the salary of the worker, while the period of his leave from work because of sickness, maternity or injury at the workplace. The medical claim is also given to the family members of the worker.
• Health care benefits @ 70% of the salary, if there is an occurrence of any severe sickness confirmed, and which goes on for a limit of 91 days in the financial year.

Complete Procedure to register new employee in ESIC                

First of all, the employer who is having the ESIC registration is supposed to apply for the registration of new employee in ESIC. This has to be done within 10 days of the appointment of the new employee. Thereafter, the following stages have to be fulfilled:

Issuance of Employee Insurance No.

Once the application for registration of new employee in ESIC has been submitted, the employer shall get the Registration Intimation Letter (RIL) mentioning the 17 Digit ESIC Registration Code. The employer now has to fulfil the next step which is to record all the details of his employees and their family members:

• Photograph,
• Aadhaar Card or any other Address proof and
• ID proof of Employee and
• Any Valid supporting documents for authenticating the proof of relation of the employees with their family members to be covered.

The insurance number shall be generated on this basis. The same shall be used by the employee throughout his life, regardless of shifting of his job or change of the place or establishment of his employment.

Upon issuance of the insurance number, the next step is to log in to ESIC portal with employer ID and furnish the correct Employee details online. This is to update and save the employee details on the ESIC Portal. In case there is any change in the details of the residential, dispensary, or employment place, same must be updated there and then.

Temporary ID Certificate (TIC)

Once the ESI registration of the new employee has been done, the employer must now obtain a hard copy of the Temporary Identity Certificate (TIC), that has been updated on his account. This TIC shall be valid for a period of 1 month only.

Permanent ID Certificate (TIC)

Next step is to link employee’s Aadhaar with his ESIC insurance number. Only after this step, the TIC will be converted into a Permanent Identity Card (PIC). Now, the employee and all his family members can easily avail all the advantages of the ESI Scheme with the PIC and insurance number without any hindrance.

In case the employee Aadhaar number or his family member is not available, the employer has to affix the photograph of his employee along with his family members on the TIC, and the same must be authenticated with employer stamp & signature.

However, in this case, the insured person i.e., the employee along with all his family members is supposed to link their Aadhaar number on the ESIC portal in one month’s time. This is very essential in order to avail the medical benefit at the ESIC hospitals and dispensaries. Besides, only after obtaining the TIC, the monetary benefits of ESIC Scheme can be availed from any of the ESI branch Office.

Benefits of the ESI Scheme for the workers         

Given below are the main advantages of the ESIC Registration for the workers:

• Medi-claim coverage to the employee and his relatives.
• Maternity Benefit to the female employees who have taken the Maternity leave. The same shall be their paid leaves.
• In the worst-case scenario, for instance, there’s the demise of the worker while at the workplace: 90% of his salary shall be transferred to his ward on monthly basis after the death of that employee.
• Above that, the funeral service cost shall also be covered.
• All the reliefs given above shall also be given if there is an occurrence of inability of the employee to come to work due to any disease.
• Above all, the Medical expenses of all Seniority citizens and Sr. Citizen Dependants of the employee shall be covered under the ESIC scheme.

Conclusion

To sum up we must say that ESI is a multi-faceted social security cum insurance scheme for the employees under the organized sector, which is basically formulated to extend socio-economic cover to the employees. Indeed it’s a boon to the workers of the organized sector that insures them financially in case of sick leave, maternity leave, demise or disability to work due to an injury while at the workplace.

Also, Read: All That You Need To Know: When IEC Code is Required?