Rule 8: The Employees’ State Insurance Corporation, Standing Committee and Medical Benefit Committee

Finin2min analysis — operative rule mechanics

Full notified text — Rule 8

8. The Employees’ State Insurance Corporation, Standing Committee and Medical Benefit
Committee.–(1) Every person representing each of the States shall be appointed as a member of the
Corporation, on nomination by the State Government concerned.

(2) (a) The common seal of the Corporation shall remain in the custody of the Director General of the
Corporation and shall not be affixed to any instrument except in the presence of the Director General
or two members of the Standing Committee constituted under sub-rule (3) and the Director General or
the said two members shall sign the contract in token of the fact that the same was sealed in his or
their presence.

(b) The Corporation shall have for use at each of its other offices, as it may specify, an official seal
which shall be a facsimile of the common seal of the Corporation with the addition of the name of the
office where it is to be used.

(c) The official seal shall not be affixed to any instrument except in the presence of such person or
persons as the Standing Committee may authorise in this behalf and such person or persons shall sign
the instrument in token of the fact that the same was sealed in his or their presence.

(d) An instrument to which an official seal is duly affixed shall bind the Corporation as if it had been
sealed with the common seal of the Corporation.

(3) A Standing Committee of the Corporation shall be constituted from amongst its members,
consisting of —

        (a) a Chairperson appointed by the Central Government;

        (b) three members of the Corporation, appointed by the Central Government;

        (c) three members of the Corporation representing such three State Governments thereon as
        the Central Government shall specify from time to time;

        (d) eight members elected by the Corporation as follows, namely: —

            (i) three members from among the members of the Corporation representing employers;

            (ii) three members from among the members of the Corporation representing employees;

            (iii) one member from among the members of the Corporation representing the medical
            profession; and

            (iv) one member from among the members of the Corporation elected by Parliament;
            and

        (e) the Director-General of the Corporation, ex officio.

(4) (a) The Chairperson of the Corporation shall, at a meeting of the Corporation at which it is
proposed to elect members of the Standing Committee under clause (d) of sub-rule (3), invite
members to propose names from among members of the Corporation belonging to the group from
which election is to be held and the names proposed shall be duly seconded by another member of the
Corporation.

(b) If the number proposed from any group for election does not exceed the number of vacancies to be
filled therefrom, the persons whose names have been so proposed shall be declared elected to the
Standing Committee.

(c) If the number proposed from a group for election exceeds the number of vacancies to be filled
there from, each member of the Corporation present at the meeting shall be given a secret ballot paper
containing the names of all the candidates proposed and he shall be required to vote thereon for as
many candidates from the group as there are vacancies to be filled up, with one vote in favour of any

one candidate and if any member votes for more candidates than there are vacancies in the group or
gives more than one vote in favour of any one candidate, all his votes shall be deemed to be invalid.

(d) The persons getting the highest number of votes shall be declared by the Chairperson at the
meeting or as soon thereafter as possible as duly elected to the Standing Committee:

     Provided that where an equality of votes is found to exist between any candidates and the
addition of one vote will entitle any of the candidates to be declared to be elected, the determination
of the person or persons to whom such one additional vote shall be deemed to have been given shall
be made by lot to be drawn in the presence of the Chairperson and in such manner as he may
determine.

(e) If any question arises as to the validity of any election, it shall be referred to the Central
Government whose decision in the matter shall be final.

(5) The powers and duties of the Medical Benefit Committee shall be–

(a) to advise the Corporation in regard to the constitution, setting up, duties and powers of local
committees constituted for the purpose of assisting in the administration of medical benefit;

(b) to make recommendations to the Corporation in regard to —

    (i) the scale and nature of medical benefit provided at hospitals, dispensaries, clinics and other
          institutions and the nature and the extent of the medicines, staff and equipment which shall be
          maintained at such institutions and the extent to which these fall short of the desired standard;
    (ii) the medical formulary for use in connection with the medical benefit provided under the
          Code;
    (iii) medical certification for the purposes of the grant of benefits, including the procedure and the
          forms for such certification, statistical returns, registers and other medical records; and
    (iv) measures undertaken for the improvement of the health and welfare of Insured Persons, and
          the rehabilitation and re-employment of Insured Persons, disabled or injured;

(c) to advise the Corporation on any matter relating to the professional conduct of any medical
practitioner employed for the purpose of providing medical benefit under the Code.

(6) (a) Save as otherwise expressly provided in the Code, the terms of office of members of the
Corporation, other than the members referred to in clauses (a), (b), (c), (d) and (e) of sub-section (1)
of section 5 and the ex officio member, shall be for four years commencing from the date respectively
on which their appointment or election is notified:

         Provided that a member of the Corporation shall notwithstanding the expiry of the said period
of four years, continue to hold office until the appointment or election of his successor is notified:

       Provided further that the tenure of non-official members of the Corporation shall not be for
more than a total of two terms.

(b) The members of the Corporation referred to in clauses (a), (b), (c), (d) and (e) of sub-section (1) of
section 5 shall hold office during the pleasure of the Central Government.

(7) (a) Save as otherwise expressly provided in the Code, the terms of office of a member of the
Standing Committee, other than a member referred to in clause (a) or clause (b) or clause (c) of sub-
rule (3), shall be two years from the date on which his election is notified:

        Provided that a member of the Standing Committee shall, notwithstanding the expiry of the
said period of two years, continue to hold office until the election of his successor is notified:

        Provided further that a member of the Standing Committee shall cease to hold office when he
ceases to be a member of the Corporation.

(b) A member of the Standing Committee referred to in clause (a) or clause (b) or clause (c) of sub-
rule (3) shall hold office during the pleasure of the Central Government.

(8) The Standing Committee shall be responsible for administering the affairs of the Corporation and
may exercise any of the powers and perform any of the functions of the Corporation as provided
under the rules and regulations made under the Code.

C. NATIONAL SOCIAL SECURITY BOARD

Application and evidence

1. Primary statutory test — (1) Every person representing each of the States shall be appointed as a member of the Corporation, on nomination by the State Government concerned.
2. Additional operative limb — (2) (a) The common seal of the Corporation shall remain in the custody of the Director General of the Corporation and shall not be affixed to any instrument except in the presence of the Director General or two members of the Standing Committee constituted under sub-rule (3) and the Director General or the said two members shall sign the contract in token of the fact that the same was sealed in his or their presence.
3. Qualification / exception to test — Provided that where an equality of votes is found to exist between any candidates and the addition of one vote will entitle any of the candidates to be declared to be elected, the determination of the person or persons to whom such one additional vote shall be deemed to have been given shall be made by lot to be drawn in the presence of the Chairperson…
4. Numerical or timing control — (6) (a) Save as otherwise expressly provided in the Code, the terms of office of members of the Corporation, other than the members referred to in clauses (a), (b), (c), (d) and (e) of sub-section (1) of section 5 and the ex officio member, shall be for four years commencing from the date respectively on which their appointment or election is notified:
5. Code Section mapping — 5. Read the mapped provision together with this text rather than treating the concordance as a substitute for it.
6. Evidence file — retain facts and records proving the role/status of: Employer, Employee / worker, Central Government, State Government, Corporation / EPFO / Board.

Cross-references & prescribed forms

Worked example

Q&A — Rule 8

Primary sources