THE EMPLOYEE STATE INSURANCE ACT,1948
CHAPTER III
FINANCE AND AUDIT
26. Employees' State Insurance Fund.
–
(l)All contributions paid under this Act and all
other moneys received on behalf of the Corporation shall be paid
into a fund called the Employees' State Insurance Fund, which shall
be held and administered by the Corporation for the purposes of
this Act.
(2)The Corporation may accept grants, donations
and gifts from the Central or any State Government, 1* *
* local authority, or any individual or body whether incorporated
or not, for all or any of the purposes of this Act.
2[(3)Subject to the other provisions contained
in this Act and to any rules or regulations made in this behalf,
all moneys accruing or payable to the said Fund shall be paid into
the Reserve Bank of India or such other bank as may be approved
by the Central Government to the credit of an account styled the
account of the Employees' State Insurance Fund.]
(4)Such account shall be operated on by such officers as may be
authorised by the Standing Committee with the approval of the Corporation.
1.The words “Part B State,” omitted by Act No.
53 of 1951, s. 10.
2.Subs. by Act No. 53 of 1951, s. 10, for sub-section
(3).
27.[Grant by the Central Government.]Rep. by
the Employees' State Insurance (Amendment) Act, 1966 (44 of 1966),
s. 12 (w.e.f. 17-6-1967).
28.Purposes for which the Fund may be expended. -Subject
to the provisions of this Act and of any rules made by the Central
Government in that behalf, the Employees' State Insurance Fund shall
be expended only for the following purposes, namely:
(i)Payment of benefits and provision of medical
treatment and attendance to insured persons and, where the medical
benefit is extended to their families, the provision of such medical
benefit to their families, in accordance with the provisions of
this Act and defraying the charges and costs in connection therewith;
(ii)Payment of fees and allowances to members of
the Corporation, the Standing Committee and the Medical Benefit
Council, the Regional Boards, Local Committees and Regional and
Local Medical Benefit Councils;
(iii)Payment of salaries, leave and joining time
allowances, travelling and compensatory allowances, gratuities and
compassionate allowances, pensions, contributions to provident or
other benefit fund of officers and servants of the Corporation and
meeting the expenditure in respect of offices and other services
set up for the purpose of giving effect to the provisions of this
Act;
(iv)Establishment and maintenance of hospitals, dispensaries and
other institutions and the provision of medical' and other ancillary
services for the benefit of insured persons and, where the medical
benefit is extended to their families;
(v)Payment of contributions to any State Government, 1***
local authority or any private body or individual, towards the cost
of medical treatment and attendance provided to insured persons,
and, where the medical benefit is extended to their families, their
families, including the cost of any building and equipment, in accordance
with any agreement entered into by the Corporation;
(vi)Defraying the cost (including all expenses) of auditing the
accounts of the Corporation and of the valuation of its assets and
liabilities;
(vii)Defraying the cost (including all expenses) of the Employees'
Insurance Courts set up under this Act;
(viii)Payment of any sums under any contract entered
into for the purposes of this Act by the Corporation or the Standing
Committee or by any officer duly authorised by the Corporation or
the Standing Committee in that behalf;
(ix)Payment of sums under any decree, order or
award of any Court or Tribunal against the Corporation or any of
its officers or servants for any act done in the execution of his
duty or under a compromise or settlement of any suit or other legal
proceeding or claim instituted or made against the Corporation;
(x)Defraying the cost and other charges of instituting
or defending any civil or criminal proceedings arising out of any
action taken under this Act;
(xi)Defraying expenditure, within the limits prescribed,
on measures for the improvement of the health welfare of insured
persons and for the rehabilitation and re-employment of insured
persons who have been disabled or injured; and
(xii)Such other purposes as may be authorised by
the Corporation with the previous approval of the Central Government.
1.The words “Part B State”, omitted by Act No.
53 of 1951 s. 11.
1[28A. Administrative expenses. -The
types of expenses which may be termed, as administrative expenses
and the percentage of the income of the Corporation which may be spent
for such expenses shall be such as may be prescribed by the Central
Government and the Corporation shall keep its administrative expenses
within the limit so prescribed by the Central Government.]
1.Ins. by Act No. 29 of 1989, s. 9.
29.Holding of property, etc.-
(l)The Corporation may, subject to such conditions
as may be prescribed by the Central Government, acquire and hold
property both movable and immovable, sell or otherwise transfer
any movable or immovable property which may have become vested in
or have been acquired by it and do all things necessary for the
purposes for which for Corporation is established.
(2)Subject to such conditions as may be prescribed
by the Central Government, the Corporation may from time to time
invest any moneys which are not immediately required for expenses
properly defrayable under this Act and may, subject as aforesaid,
from time to time re-invest or realise such investments.
(3)The Corporation may, with the previous sanction
of the Central Government and on such terms as may be prescribed
by it, raise loans and take measures for discharging such loans.
(4)The Corporation may constitute for the benefit
of its staff or any class of them, such provident or other benefit
fund as it may think fit.
30. Vesting of the property in the Corporation. -All property acquired
before the establishment of the Corporation shall vest in the Corporation
and all income derived and expenditure incurred in this behalf shall
be brought into the books of the Corporation.
31.[Expenditure by Central Government to be treated
as a loan.] Rep. by the Employees' State Insurance (Amendment)
Act, 1966 (44 of 1966), s. 12 (w.e.f. 17-6-1967).
32. Budget estimates. -The Corporation shall in each year frame a budget
showing the probable receipts and the expenditure which it proposes
to incur during the following year and shall submit a copy of the
budget for the approval of the Central Government before such date
as may be fixed by it in that behalf. The budget shall contain provisions
adequate in the opinion of the Central Government for the discharge
of the liabilities incurred by the Corporation and for the maintenance
of a working balance.
33.Accounts. -The Corporation shall maintain
correct accounts of its income and expenditure in such form and in
such manner as may be prescribed by the Central Government.
1[34. Audit. –
(1)The accounts of the Corporation shall be audited
annually by the Comptroller and Auditor-General of India and any
expenditure incurred by him in connection with such audit shall
be payable by the Corporation to the Comptroller and Auditor-General
of India.
(2)The Comptroller and Auditor-General of India
and any person appointed by him in connection with the audit of
the accounts of the Corporation shall have the same rights and privileges
and authority in connection with such audit as the Comptroller and
Auditor-General has, in connection with the audit of Government
accounts and, in particular, shall have the right to demand the
production of books, accounts connected vouchers and other documents
and papers and to inspect any of the offices of the Corporation.
(3)The accounts of the Corporation as certified
by the Comptroller and Auditor-General of India or any other person
appointed by him in this behalf together with the audit report thereon
shall be forwarded to the Corporation which shall forward the same
to the Central Government along with its comments on the report
of the Comptroller and Auditor General.]
1. Subs. for section 34 by Act No. 29
of 1989, s. 1 0, (w.e.f. 20-10-1989).
35. Annual report. -The Corporation shall submit to the Central Government
an annual report of its work and activities.
36.Budget, audited accounts and the annual report to
be placed before Parliament. -The annual report, the audited
accounts of the Corporation, 1[together with the 2[the
report of the Comptroller and Auditor General of India thereon and
the comments of the Corporation on such report] under section 34]
and the budget as finally adopted by the Corporation shall be placed
before 3[Parliament] and published in the Official Gazette.
1.Ins. by Act No. 44 of 1986, s. 13 (w.e.f. 17-6-1967).
2.Subs. for “auditor's report thereon” by Act No 29 of 1989, s. 11
(w.e.f. 20-10-1989).
3.Subs. by the A.0. 1950, for “the Central Legislature”.
37.Valuation of assets and liabilities. -The
Corporation shall, at intervals of five years, have a valuation of
its assets and liabilities made by a, valuer appointed with the approval
of the Central Government:
Provided that it shall be open to the Central Government to direct
a valuation to be made at such other times as it may consider necessary.
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