EMPLOYEES STATE INSURANCE (AMENDMENT) ACT, 1989
(1) This Act may be called the Employees' State Insurance (Amendment) Act, 1989.
(2) It shall come into force on such date1 or dates as the Central Government may, by notification in the Official Gazette, appoint, and different dates may be appointed for different provisions of this Act and for different States or for different parts thereof and any reference in any such provision to the commencement of this Act shall be construed in relation to any State or part thereof as a reference to the coming into force of that provision in that State or part thereof.
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1 The provisions of section 7 (ii) of this Act shall come into force on 8-11-1989 vide Notification No. S.O. 935 (E), dt. 8-11-1989.
1 The provisions of sections 2 (i) & (i
In section 1 of the Employees' State Insurance Act, 1948 (34 of 1948) (hereinafter referred to as the principal Act),--
(i) in sub-section (4), the following proviso shall be inserted, namely:--
"Provided that nothing contained in this sub-section shall apply to a factory or establishment belonging to or under the control of the Government whose employees are otherwise in receipt of benefits substantially similar or superior to the benefits provided under this Act.";
(ii) in sub-section (5), the following proviso shall be inserted, namely: --
"Provided that where the provisions of this Act have been brought into force in any part of a State, the said provisions shall stand extended to any such establishment or class of establishments within that par
In section 2 of the principal Act,--
(i) clause (2) shall be omitted;
(ii) clause (5) shall be omitted;
(iii) in clause (6A),--
(a) in sub-clause (i), for the words "daughter or a widowed mother; and", the word "daughter;" shall be substituted;
(b) after sub-clause (t), the following sub-clause shall be inserted, namely:--
"(ia) a widowed mother;";
(iv) in clause (9),--
(a) for the words "; but does not include", the words and figures "or any person engaged as an apprentice, not being an apprentice engaged under the Apprentices Act, 1961 (52 of 1961), or under the standing
In Chapter II of the principal Act, for the words "nominated", "nomination", "nominating", "renomination" and "nominate", wherever they occur, the words "appointed", "appointment", "appointing", "reappointment" and "appoint" shall respectively be substituted.
In section 4 of the principal Act, in clauses (f) and (g), for the word "five", the word "ten" shall be substituted.
In section 16 of the principal Act,--
(i) for sub-section (2), the following sub-section shall be substituted, namely:--
"(1) The Central Government may, in consultation with the Corporation, appoint a Director General and a Financial Commissioner.";
(ii) in sub-section (3), for the words "The Principal Officers", the words "The Director General and the Financial Commissioner" shall be substituted;
(iii) in sub-section (4),--
(a) for the words "A Principal Officer", the words "The Director General or the Financial Commissioner" shall be substituted;
(b) for the words "Principal Officer", the words "Director General or Financial Commissioner" shall be substitute
In section 17 of the principal Act,--
(i) in sub-section (1), for the words "exceeds two thousand and two hundred fifty rupees", the words "exceeds such salary as may be prescribed by the Central Government" shall be substituted;
(ii) for sub-section (2), the following sub-section shall be substituted, namely:--
"(2) (a) The method of recruitment, salary and allowances, discipline and other conditions of service of the members of the staff of the Corporation shall be such as may be specified in the regulations made by the Corporation in accordance with the rules and orders applicable to the officers and employees of the Central Government drawing corresponding scales of pay:
Provided that where the Corporation is of the opinion that it is necessary
In section 23 of the principal Act, for the words "Principal Officers", the words "Director General and the Financial Commissioner" shall be substituted.
After section 28 of the principal Act, the following section shall be inserted, namely:--
"28A. Administrative expenses.--The types of expenses which may be termed as administrative expenses and the percentage of the income of the Corporation which may be spent for such expenses shall be such as may be prescribed by the Central Government and the Corporation shall keep its administrative expenses within the limit so prescribed by the Central Government.".
For section 34 of the principal Act, the following section shall be substituted, namely:--
"34. Audit.--(1) The accounts of the Corporation shall be audited annually by the Comptroller and Auditor-General of India and any expenditure incurred by him in connection with such audit shall be payable by the Corporation to the Comptroller and Auditor-General of India.
(2) The Comptroller and Auditor-General of India and any person appointed by him in connection with the audit of the accounts of the Corporation shall have the same rights and privileges and authority in connection with such audit as the Comptroller and Auditor-General has, in connection with the audit of Government accounts and, in particular, shall have the right to demand the production of books, accounts, connected vouchers and other documents and papers and to inspect any of
In section 36 of the principal Act,--
(i) for the words "auditor's report thereon", the words "the report of the Comptroller and Auditor-General of India thereon and the comments of the Corporation on such report" shall be substituted;
(ii) the words "and published in the Official Gazette" shall be omitted.
In section 39 of the principal Act,--
(i) for sub-section (2), the following sub-section shall be substituted, namely:--
"(2) The contributions shall be paid at such rates as may be prescribed by the Central Government:
Provided that the rates so prescribed shall not be more than the rates which were in force immediately before the commencement of the Employees' State Insurance (Amendment) Act, 1989.";
(ii) after sub-section (4), the following sub-section shall be inserted, namely:--
'(5) (a) If any contribution payable under this Act is not paid by the principal employer on the date on which such contribution has become due, he shall be liable to pay simple interest at the rate of twelve per cent. per an
In section 41 of the principal Act, after sub-section (1), the following sub-section shall be inserted, namely:--
"(1A) The immediate employer shall maintain a register of employees employed by or through him as provided in the regulations and submit the same to the principal employer before the settlement of any amount payable under sub-section (1).".
In section 42 of the principal Act, in sub-section (1),--
(i) for the words "six rupees", the words "such wages as may be prescribed by the Central Government" shall be substituted;
(ii) in the Explanation, for the words "in the manner specified in the First Schedule", the words "in such manner as may be prescribed by the Central Government" shall be substituted.
In section 45A of the principal Act,--
(i) in sub-section (1),--
(a) for the word "obstructed", the words "prevented in any manner" shall be substituted;
(b) the following proviso shall be added, namely:--
"Provided that no such order shall be passed by the Corporation unless the principal or immediate employer or the person in charge of the factory or establishment has been given a reasonable opportunity of being heard.";
(ii) in sub-section (2), the following shall be added at the end, namely:--
"or the recovery under section 45C to section 45-I".
In Chapter IV of the principal Act, after section 45B, the following sections shall be inserted, namely:--
'45C. Issue of certificate to the Recovery Officer.--(1) Where any amount is in arrear under this Act, the authorised officer may issue, to the Recovery Officer, a certificate under his signature specifying the amount of arrears and the Recovery Officer, on receipt of such certificate, shall proceed to recover the amount specified therein from the factory or establishment or, as the case may be, the principal or immediate employer by one or more of the modes mentioned below:--
(a) attachment and sale of the movable or immovable property of the factory or establishment or, as the case may be, the principal or immediate employer;
(b) arrest of the employer and his detention in prison;
&n
In section 46 of the principal Act, in sub-section (1),--
(i) in clause (f), for the words "funeral benefit", the words "funeral expenses" shall be substituted;
(ii) in the proviso, for the words "one hundred rupees", the words "such amount as may be prescribed by the Central Government" shall be substituted.
Section 47 of the principal Act shall be omitted.
For sections 49 and 50 of the principal Act, the following sections shall be substituted, namely:--
"49. Sickness benefit.--The qualification of a person to claim sickness benefit, the conditions subject to which such benefit may be given, the rates and period thereof shall be such as may be prescribed by the Central Government.
50. Maternity benefit.--The qualification of an insured woman to claim maternity benefit, the conditions subject to which such benefit may be given, the rates and period thereof shall be such as may be prescribed by the Central Government.".
In section 51 of the principal Act,--
(i) in the opening portion, the words "and the regulations, if any" shall be omitted;
(ii) in clause (a), for the words "for the period of such disablement in accordance with the provisions of the First Schedule", the words "at such rates and for such period and subject to such conditions as may be prescribed by the Central Government" shall be substituted;
(iii) in clause (b), for the words "for such disablement in accordance with the provisions of the First Schedule", the words "at such rates and for such period and subject to such conditions as may be prescribed by the Central Government" shall be substituted;
(iv) the proviso shall be omitted.
In section 52 of the principal Act,--
(a) in sub-section (1),--
(i) for the words "in accordance with the provisions of the First Schedule", the words "at such rates and for such period and subject to such conditions as may be prescribed by the Central Government" shall be substituted;
(ii) for the words, brackets and figure "sub-clause (i) and", the words, brackets, figures and letter "sub-clause (i), sub-clause (ia) and" shall be substituted;
(b) in sub-section (2), for the words "in accordance with the provisions of the First Schedule", the words "at such rates and for such period and subject to such conditions as may be prescribed by the Central Government" shall be substituted.
In section 54A of the principal Act, after sub-section (2), the following provisos shall be inserted, namely:--
"Provided that no appeal by an insured person shall lie under this sub-section if such person has applied for commutation of disablement benefit on the basis of the decision of the medical board and received the commuted value of such benefit:
Provided further that no appeal by the Corporation shall lie under this sub-section if the Corporation paid the commuted value of the disablement benefit on the basis of the decision' of the medical board.".
In section 56 of the principal Act, in sub-section (3), after the proviso, the following shall be inserted, namely:--
'Provided further that an insured person who ceases to be in insurable employment on account of permanent disablement shall continue, subject to payment of contribution and such other conditions as may be prescribed by the Central Government, to receive medical benefit till the date on which he would have vacated the employment on attaining the age of superannuation had he not sustained such permanent disablement:
Provided also that an insured person, who has attained the age of superannuation, and his spouse shall be eligible to receive medical benefit subject to payment of contribution and such other conditions as may be prescribed by the Central Government.
Explanation.--In
In section 62 of the principal Act, for the words "periodical payment", the words "disablement benefit" shall be substituted.
For section 63 of the principal Act, the following section shall be substituted, namely:--
"63. Persons not entitled to receive benefit in certain cases.--Save as may be provided in the regulations, no person shall be entitled to sickness benefit or disablement benefit for temporary disablement on any day on which he works or remains on leave or on a holiday in respect of which he receives wages or on any day on which he remains on strike.".
In section 64 of the principal Act, in clause (d), the words "or sick visitor" shall be omitted.
In sub-section (2) of section 68 and sub-section (3) of section 70 of the principal Act, the following shall be added at the end, namely:--
"or under section 45C to section 45-I".
In section 71 of the principal Act, for the words, brackets and figures "Except as provided in the proviso to sub-section (2) of section 50, if a person dies", the words "If a person dies" shall be substituted.
In section 75 of the principal Act, after sub-section (2A), the following sub-section shall be inserted, namely:--
"(2B) No matter which is in dispute between a principal employer and the Corporation in respect of any contribution or any other dues shall be raised by the principal employer in the Employees' Insurance Court unless he has deposited with the Court fifty per cent. of the amount due from him as claimed by the Corporation:
Provided that the Court may, for reasons to be recorded in writing, waive or reduce the amount to be deposited under this sub-section.".
In section 77 of the principal Act, in sub-section (1A), in the Explanation, for clause (b), the following clauses shall be substituted, namely:--
"(b) the cause of action in respect of a claim by the Corporation for recovering contributions (including interest and damages) from the principal employer shall be deemed to have arisen on the date on which such claim is made by the Corporation for the first time:
Provided that no claim shall be made by the Corporation after five years of the period to which the claim relates;
(c) the cause of action in respect of a claim by the principal employer for recovering contributions from an immediate employer shall not be deemed to arise till the date by which the evidence of contributions having been paid is due to be received by the Corporation under th
In section 82 of the principal Act, in sub-section (4), for the words and figures "Indian Limitation Act, 1908 (9 of 1908)", the words and figures "Limitation Act, 1963 (36 of 1963)" shall be substituted.
In section 84 of the principal Act,--
(i) for the words "three months", the words "six months" shall be substituted;
(ii) for the words "five hundred", the words "two thousand" shall be substituted;
(iii) the following proviso shall be inserted at the end, namely:--
"Provided that where an insured person is convicted under this section, he shall not be entitled for any cash benefit under this Act for such period as may be prescribed by the Central Government.".
In section 85 of the principal Act, for clauses (i) and (ii), the following clauses shall be substituted, namely:--
"(i) where he commits an offence under clause (a), with imprisonment for a term which may extend to three years but--
(a) which shall not be less than one year, in case of failure to pay the employee's contribution which has been deducted by him from the employee's wages and shall also be liable to fine of ten thousand rupees;
(b) which shall not be less than six months, in any other case and shall also be liable to fine of five thousand rupees:
Provided that the Court may, for any adequate and special reasons to be recorded, in the judgment, impose a sentence of imprisonment for a lesser term;
&n
In section 85A of the principal Act,--
(i) for the words "one year, or with fine which may extend to two thousand rupees, or with both", the words "two years and with fine of five thousand rupees" shall be substituted;
(ii) in the proviso, for the words "one year but which shall not be less than three months and shall also be liable to fine which may extend to four thousand rupees", the words "five years but which shall not be less than two years and shall also be liable to fine of twenty-five thousand rupees" shall be substituted.
In section 85B of the principal Act,--
(a) in sub-section (2),--
(i) for the words "from the employer such damages not exceeding the amount of arrears as it may think fit to impose", the words "from the employer by way of penalty such damages not exceeding the amount of arrears as may be specified in the regulations" shall be substituted;
(ii) after the proviso, the following proviso shall be inserted, namely:--
"Provided further that the Corporation may reduce or waive the damages recoverable under this section in relation to an establishment which is a sick industrial company in respect of which a scheme for rehabilitation has been sanctioned by the Board for Industrial and Financial Reconstruction established under section 4 of the Sick Industria
In section 85C of the principal Act,--
(i) in sub-section (1), the following shall be added at the end, namely:--
"and to furnish the return relating to such contributions";
(ii) in sub-section (2), for the words "one hundred", the words "one thousand" shall be substituted.
In section 86 of the principal Act,--
(i) for sub-section (2), the following sub-section shall be substituted, namely:--
"(2) No court inferior to that of a Metropolitan Magistrate or Judicial Magistrate of the First Class shall try any offence under this Act.";
(ii) in sub-section (3), the words ", within six months of the date on which the offence is alleged to have been committed" shall be omitted.
After section 86 of the principal Act, the following section shall be inserted, namely:--
'86A. Offences by companies.--(1) If the person committing an offence under this Act is a company, every person, who at the time the offence was committed was incharge of, and was responsible to, the company for the conduct of the business of the company, as well as the company, shall be deemed to be guilty of the offence and shall be liable to be proceeded against and punished accordingly:
Provided that nothing contained in this sub-section shall render any person liable to any punishment, if he proves that the offence was committed without his knowledge or that he exercised all due diligence to prevent the commission of such offence.
(2) Notwithstanding anything contained in sub-section (1), where an of
In section 90 of the principal Act, the words "the Government or" shall be omitted.
After section 91A of the principal Act, the following sections shall be inserted, namely:--
"91B. Misuse of benefits.--If the Central Government is satisfied that the benefits under this Act are being misused by insured persons in a factory or establishment, that Government may, by order, published in the Official Gazette, disentitle such persons from such of the benefits as it thinks fit:
Provided that no such order shall be passed unless a reasonable opportunity of being heard is given to the concerned factory or establishment, insured persons and the trade unions registered under the Trade Unions Act, 1926 (16 of 1926)having members in the factory or establishment.
91C. Writing off of losses.--Subject to the conditions as may be prescribed by the Central Government, where the Corporation is
Section 92 of the principal Act shall be renumbered as sub-section (1) thereof and after sub-section (1) as so renumbered, the following sub-section shall be inserted, namely:--
"(2) The Central Government may, from time to time, give such directions to the Corporation as it may think fit for the efficient administration of the Act, and if any such direction is given, the Corporation shall comply with such direction.".
In section 94 of the principal Act, for the words and figures "or under section 230 of the Indian Companies Act, 1913 (7 of 1913)", the words and figures "or under section 530 of the Companies Act, 1956 (1 of 1956)" shall be substituted.
In section 95 of the principal Act, in sub-section (2),--
(i) clause (a) shall be relettered as clause (ac) thereof and before clause (ac) as so relettered, the following clauses shall be inserted, namely:--
"(a) the limit of wages beyond which a person shall not be deemed to be an employee;
(ab) the limit of maximum monthly salary for the purpose of sub-section (1) of section 17;";
(ii) in clause (ac) as so relettered, for the word "nominations", the word "appointments" shall be substituted;
(iii) in clause (d), for the words "Principal Officers", the words "Director General and the Financial Commissioner" shall be substituted;
(iv) clause (ee) shall be relett
In section 97 of the principal Act,--
(i) in sub-section (1), the words "with the prior approval of the Central Government and" shall be omitted;
(ii) in sub-section (2),--
(a) for clause (iiia), the following clause shall be substituted, namely:--
"(iiia) the rate of interest higher than twelve per cent. on delayed payment of contributions;";
(b) after clause (iv), the following clauses shall be inserted, namely:--
"(iva) the register of employees to be maintained by the immediate employer;
(ivb) the entitlement of sickness benefit or disablement benefit for temporary disablement on any day on which person works or
For section 99 of the principal Act, the following section shall be substituted, namely:--
"99. Medical care for the families of insured persons.--At any time when its funds so permit, the Corporation may provide or contribute towards the cost of medical care for the families of insured persons.".
The First Schedule to the principal Act shall be omitted.
In the Second Schedule to the principal Act,--
(a) after Serial Number 16 and entries relating thereto, the following shall be inserted, namely:--
"16A. Guillotine amputation of the tip of the thumb without loss of bone ...... 10";
(b) against Serial Number 27, for the figures "40", the figures "50" shall be substituted;
(c) against Serial Number 28, for the figures "30", the figures "50" shall be substituted;
(d) against Serial Number 29, for the figures "30", the figures "50" shall be substituted;
(e) after Serial Number 32 and entries relating thereto, the following shall be inserted, namely:--
"32A. Partial loss
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