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What is the full form of ESIC?
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Answer: Option A — Employees' State Insurance Corporation
Detailed Solution
ESIC stands for the "Employees' State Insurance Corporation", a statutory body that runs the Employees' State Insurance (ESI) scheme.
About the ESI scheme:
- It was set up under the Employees' State Insurance Act, 1948, India's first major social security law for workers after independence.
- The scheme was first launched on 24 February 1952 at Kanpur and Delhi by Prime Minister Jawaharlal Nehru. 24 February is observed as "ESIC Day".
- It works under the Ministry of Labour and Employment.
- Its headquarters is in New Delhi.
Coverage:
- It applies to factories and certain other establishments (such as shops, hotels, restaurants, cinemas, transport companies, private educational and medical institutions) employing 10 or more persons.
- It covers employees earning wages of up to 21,000 rupees per month (25,000 rupees for persons with disabilities).
Contributions:
The employer contributes 3.25 per cent and the employee 0.75 per cent of wages (rates since July 2019). Employees earning up to 176 rupees a day are exempt from paying their share.
Benefits:
- Medical benefit: full medical care for the insured person and family members, from the first day of employment.
- Sickness benefit: cash payment during sickness (70 per cent of wages).
- Maternity benefit: paid leave for 26 weeks.
- Disablement benefit: for injuries at work.
- Dependants' benefit: for families of workers who die due to employment injury.
- Unemployment allowance: under the "Atal Bimit Vyakti Kalyan Yojana" and the "Rajiv Gandhi Shramik Kalyan Yojana".
- Funeral expenses.
- ESIC runs a large network of hospitals, dispensaries and medical colleges across India.
Labour codes:
The ESI Act, 1948, has been subsumed in the "Code on Social Security, 2020".
Related abbreviations:
- EPFO: Employees' Provident Fund Organisation (set up under the EPF Act, 1952).
- UAN: Universal Account Number (for EPF).
- EPS: Employees' Pension Scheme (1995).
Why not the other options?
- ✗"Employees' Social Insurance Commission" is not the correct expansion.
- ✗"Employment and Social Insurance Council" is not the correct expansion.
- ✗"Employees' Savings and Investment Corporation" is not the correct expansion.
Quick tip
Remember: ESIC = Employees' State Insurance Corporation (ESI Act 1948; first launched 24 February 1952 at Kanpur and Delhi; Ministry of Labour; employer 3.25 per cent, employee 0.75 per cent); EPFO = provident fund (1952).
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Abbreviations & Full Forms — Preparation
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This topic covers the full forms of common abbreviations used in government, banking, science, technology, defence, international relations and everyday life, such as ISRO, NABARD, SEBI, GDP, GST and UNICEF. These questions are quick marks if you have revised the most common abbreviations. Group them by field (banking, government bodies, science and technology, international organisations) and pay attention to small words such as 'of', 'for' and 'and', since wrong options often change just one word. Practise the abbreviations and full forms questions below, written in the style of the general awareness sections of exams such as SSC, banking, railways, CUET GAT, MAH CET and CLAT. Each question comes with a detailed explanation that adds related facts, so every question helps you revise more than one point.