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CMA Intermediate · Business Laws and Ethics · Employees State Insurance Act, 1948

Under the Employees' State Insurance Act, 1948, all contributions paid under the Act and other moneys received on behalf of the Corporation are paid into a fund. Who holds and administers this fund for the purposes of the Act?

The Employees' State Insurance Corporation holds and administers the ESI Fund. All contributions and other moneys received on behalf of the Corporation are paid into the Fund, which the Corporation manages for the purposes of the Act. The RBI merely acts as banker.

  1. AThe Central Government through the Ministry of Labour
  2. BThe Employees' State Insurance CorporationCorrect
  3. CThe Reserve Bank of India
  4. DThe State Government of the State where the factory is located

Explanation

Section 26(1) provides that the contributions and other moneys received on behalf of the Corporation go into the Employees' State Insurance Fund, which is held and administered by the Corporation for the purposes of the Act. The RBI only holds the account as a banker, so it is not the administrator.

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