Section 91B of ESI Act : Section 91B: Misuse Of Benefits

Explanation using Example

Example of Section 91B Application:

Imagine a scenario where the employees of XYZ Manufacturing Pvt. Ltd. are registered under the Employees' State Insurance (ESI) Scheme. An investigation reveals that several workers are collaborating to claim sickness benefits despite being in good health, essentially defrauding the system. The Central Government, upon being satisfied with the evidence of misuse, decides to take action to prevent further exploitation of the benefits.

Before any action is taken, the government issues a notice to XYZ Manufacturing Pvt. Ltd., providing a chance for the company, its workers, and the trade unions involved to present their side of the story. After giving them a reasonable opportunity to be heard, and if the misuse is still evident, the government publishes an order in the Official Gazette. This order may disentitle the workers involved from claiming certain ESI benefits for a specified period as a consequence of their misuse, in order to protect the integrity of the ESI scheme.