Consider the following statements about Employees’ State Insurance (ES

Consider the following statements about Employees’ State Insurance (ESI) Act, 1948:
1. The Act is applicable to non-seasonal factories using power and employing 20 or more persons.
2. The ESI Scheme has already been implemented in different areas in all the States/Union Territories of India.
3. ESI Scheme being contributory in nature, all the employees in the factories or establishments to which the Act applies shall be insured.
Which of the statements given above are correct?

1 and 2 only
1 and 3 only
2 and 3 only
1, 2 and 3
This question was previously asked in
UPSC CAPF – 2009
Statement 1 is correct. The Employees’ State Insurance (ESI) Act, 1948, was initially applicable to non-seasonal factories using power and employing 20 or more persons. While the coverage has expanded over time and the threshold reduced for some establishments, this was the foundational scope.
Statement 2 is correct in the context of the question’s likely timeframe. By the period this question was relevant, the ESI scheme had been extended to designated areas in virtually all States and Union Territories of India, even if not covering the entire geographical area uniformly.
Statement 3 is incorrect. While the ESI Scheme is contributory, it does not cover *all* employees. There is a wage limit for coverage. Employees earning above a specified wage ceiling are not covered under the ESI Act.
Therefore, only statements 1 and 2 are correct.
The ESI Act is a social security legislation providing medical and cash benefits to insured persons and their dependents in case of sickness, maternity, disablement, or death due to employment injury. It operates on a contributory model, but with eligibility criteria based on employment type, location, and wage level.
The ESI scheme is administered by the Employees’ State Insurance Corporation (ESIC). Over time, the Act’s applicability has been extended to various other establishments like shops, hotels, restaurants, road motor transport undertakings, newspaper establishments, etc., with lower employee thresholds (e.g., 10 or more persons).