Context

The Ministry of Labour and Employment announced Atal Bimit Vyakti Kalyan Yojana to financially support Insured Person (IP) who lost their jobs and were covered under the Employees' State Insurance Act, 1948.

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• This scheme has been approved by the Employees’ State Insurance Corporation (ESIC) that aims to benefit its subscribers, who are mainly formal sector workers who have become unemployed.
• The scheme is implemented on pilot basis for a period of two years initially.
• It provides relief to the extent of 25% of the average per day earning during the previous four contribution periods (total earning during the four contribution period/730) to be paid up to maximum 90 days of unemployment once in lifetime of the IP on submission of claim in form of an Affidavit.

Eligibility conditions

• IPshould have been rendered unemployed during the period the relief is claimed.
• IP should have been in insurable employment for a minimum period of two years.
• IP should have contributed not less than 78 days during each of the preceding four contribution periods.
• Aadhar and Bank Account of the IP should be linked with insured person data base.
• In case the IP is working for more than one employers and is covered under the ESI scheme he will be considered unemployed only in case he is rendered unemployed with all employers.

Other features of the scheme

• As specified in Section 65 of the ESI Act, an IP shall not be entitled to any other cash compensation and the Relief under ABVKY simultaneously for the same period. However, periodical payments of Permanent Disability Benefit (PDB) under ESI Act and Regulations shall continue.
• The contribution in respect of him should have been paid or payable by the employer.
• The contingency of the unemployment should not have been as a result of any punishment for misconduct or superannuation or voluntary retirement.
• The IP will be eligible for Medical benefit as provided under the Act for the period he is availing this relief.
• The claim for Relief under ABVKY may be submitted by the claimant any time after rendering unemployed, but not later than one year from the date of unemployment to the appropriate Branch Office in form of affidavit in prescribed Form. No prospective claim i.e. claim for relief under ABVKY for any future period will be allowed.
• The IP will submit his claim online through the ESIC Portal.
• The Relief under ABVKY shall be paid/ payable by Branch Office to IPs directly in their bank account only.

Significance of this scheme

• The current scenario of employment in India which has transformed from a long-term employment to fixed short-term engagement in the form of contract and temping. This scheme is a relief payable in cash directly to their bank account in case of unemployment and while they search for new engagement.
• It will curtail the multiple registrations of same IPs and thus enable them to avail the benefits requiring longer contributory conditions.
• This relaxation will immensely help the Insured Persons and their beneficiaries to avail super specialty treatment free of cost as per revised eligibility.

Employees’ State Insurance (ESI)

• The ESI Act 1948 was the first major legislation on social security for workers in India. It provides for health-related events, such as sickness, maternity and temporary or permanent disability.
• It also covers occupational disease or death due to employment injury, resulting in loss of wages or earning capacity — either total or partial.
• Under the Act, employers and employees contribute their share, respectively, with the rate of contribution being decided through the Ministry of Labour and Employment.
• It applies to premises where 10 or more persons are employed.
• Employees with wages up to Rs. 21,000 a month (earlier Rs. 15,000 per month) are entitled to the health insurance cover and other benefits under the ESI Act.
• ESIC, which is an autonomous body, regulates medical services being provided by the ESI Scheme in the respective states and Union Territories.