Section 2 of ESI Act : Section 2: Definitions

Explanation using Example

Let's consider a hypothetical scenario where a man named Raj works as a machine operator in a manufacturing factory that produces automotive parts. This factory employs more than ten people and is located in the state of Maharashtra, India. One day, while working on the factory floor, Raj suffers an injury due to a malfunctioning machine. The injury is severe enough to prevent him from continuing his work and requires medical attention.

Under The Employees State Insurance Act, 1948:

• The factory where Raj works is covered by the Act since it is a premises where a manufacturing process is carried on with more than ten employees.
• Raj is considered an employee as he is employed for wages in connection with the work of the factory.
• The injury Raj suffered is classified as an employment injury since it was caused by an accident arising out of and in the course of his employment.
• As a result of his injury, Raj is now experiencing temporary disablement, rendering him temporarily incapable of performing his work.
• The principal employer, in this case, the owner or occupier of the factory, is responsible for paying contributions to the Employees State Insurance Corporation (Corporation) for Raj's coverage under the Act.
• Raj, being an insured person under the Act, is entitled to receive benefits to cover his medical expenses and compensate for his loss of wages during the period of his recovery.

Thus, the definitions provided in Section 2 of the Employees State Insurance Act, 1948, are crucial in determining the applicability of the Act to Raj's situation and the extent of benefits he is eligible to receive following his work-related injury.