Consider the following:Hotels and restaurantsMotor transport undertakingsNewspaper establishmentsPri

Q: What is UPSC Prelims?

UPSC Prelims is a competitive examination conducted in India. This question is from the 2012 UPSC Prelims Economy paper.

Q: How can I prepare for UPSC Prelims Economy?

To prepare for UPSC Prelims Economy, practice previous year questions (PYQs), understand concepts thoroughly, and solve mock tests regularly. This 2012 question covers Human Development Index & Social Sector Schemes topic.

Q: What is the difficulty level of this question?

This UPSC Prelims 2012 Economy question has a hard difficulty level and is marked as an important question.

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You can find more UPSC Prelims previous year questions on AspirantMitraa. Browse by subject, topic, year, and difficulty level to practice effectively.

Question

Consider the following:Hotels and restaurantsMotor transport undertakingsNewspaper establishmentsPrivate medical institutionsThe employees of which of the above can have the 'Social Security' coverage under Employees' State Insurance Scheme?

Accepted Answer

Correct Answer: D — 1, 2, 3 and 4Solution:The Employees' State Insurance (ESI) Scheme is a comprehensive social security scheme providing medical care, cash benefits (sickness, maternity, disablement), and dependents' benefits to workers in the organised sector. It is governed by the Employees' State Insurance Act, 1948.The ESI Act originally covered factory workers but has been progressively extended to cover employees in various establishments. Over the years, the ESI scheme has been extended to: hotels and restaurants, motor transport undertakings, newspaper establishments, road and water transport, road motor transport, shops, cinemas, and private medical and educational institutions (including hospitals, nursing homes, diagnostic centres) — in areas where the scheme has been implemented.All four categories listed — hotels and restaurants, motor transport undertakings, newspaper establishments, and private medical institutions — are covered under the ESI scheme as extended establishments. The current threshold: establishments with 10 or more employees where wages are up to ₹21,000/month (₹25,000 for persons with disability) are covered.Why other options are incorrect:Options A, B, C: All four categories are covered — excluding any is incorrect.Key Concept: ESI Scheme benefits: medical benefit (full medical care for insured person and family); sickness benefit (70% of wages for up to 91 days per year); maternity benefit (100% wages for 26 weeks); disablement benefit (permanent/temporary); dependants' benefit (if death in employment injury); funeral expenses benefit; rehabilitation allowance. Contributions: employer contributes 3.25% of wages; employee contributes 0.75% of wages (employees earning below ₹176/day are exempt from contribution but remain covered). The ESI Corporation operates a network of hospitals and dispensaries. The scheme's extension to private medical institutions is particularly significant — the irony is that medical institution employees now get medical benefits through the scheme. ESI is distinct from EPFO (Employees' Provident Fund) which provides retirement savings; both are mandatory social security schemes for organised sector workers.

Consider the following:Hotels and restaurantsMotor transport undertakingsNewspaper establishmentsPrivate medical institutionsThe employees of which of the above can have the 'Social Security' coverage under Employees' State Insurance Scheme?

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More Questions from Human Development Index & Social Sector Schemes

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Consider the following:Hotels and restaurantsMotor transport undertakingsNewspaper establishmentsPrivate medical institutionsThe employees of which of the above can have the 'Social Security' coverage under Employees' State Insurance Scheme?

Master UPSC Prelims with Our Test Series

More Questions from Human Development Index & Social Sector Schemes

Frequently Asked Questions