UPSC Prelims 2012 Q55: Indian Economy – Human Development, Poverty & Employment Schemes
Consider the following:
1. Hotels and restaurants
2. Motor transport undertakings
3. Newspaper establishments
4. Private medical institutions
The employees of which of the above can have the 'Social Security' coverage under Employees' State Insurance Scheme?
- (a) 1, 2 and 3 only
- (b) 4 only
- (c) 1, 3 and 4 only
- (d) 1, 2, 3 and 4
Answer: (d) 1, 2, 3 and 4
Explanation
Coverage of the Employees' State Insurance Scheme
The Employees' State Insurance Act, 1948 first covered factories.
It was later extended to many other establishments employing ten or more persons.
| Establishment | Covered? |
|---|---|
| 1. Hotels and restaurants | Yes |
| 2. Motor transport undertakings | Yes |
| 3. Newspaper establishments | Yes |
| 4. Private medical institutions | Yes |
Others also covered: shops, cinemas and private educational institutions.
About the scheme:
| Point | Detail |
|---|---|
| Run by | Employees' State Insurance Corporation, under the Ministry of Labour and Employment |
| Benefits | Medical, sickness, maternity, disablement and dependants' benefits |
| Wage ceiling | Employees earning up to Rs 21,000 a month |
| Funding | Contributions from employer and employee |
Answer: (d) 1, 2, 3 and 4.
Why each option is right or wrong
- (a) Incorrect. Private medical institutions are also covered under the scheme.
- (b) Incorrect. Hotels, motor transport and newspaper establishments are covered too.
- (c) Incorrect. Motor transport undertakings are also covered.
- (d) CORRECT. Employees of all four can have Social Security coverage under the scheme.
Key point
ESI Act 1948: factories and notified establishments with 10 or more employees (shops, hotels, cinemas, transport, newspapers, private medical and educational institutions); wage ceiling Rs 21,000.
Remember
ESI covers factories, hotels, transport, newspapers, private hospitals and schools.
Common mistakes
- Thinking the scheme covers only factory workers.
- Confusing the Employees' State Insurance scheme with the Provident Fund.
- Leaving out private medical institutions, which were added later.
Exam tip
The scheme has been widened step by step. When every item is an organised workplace, 'all of them' is the likely answer.
Sources
- Employees' State Insurance Corporation — Coverage under the ESI Act, 1948
- Ministry of Labour and Employment — Employees' State Insurance Scheme