Section 26: Purposes for which Employees’ State Insurance Fund may be expended

Finin2min analysis — what the section actually does

Full statutory text — Section 26

26. Purposes for which Employees’ State Insurance Fund may be expended.— Subject to the
provisions of this Chapter and the rules and regulations relating thereto, made under this Code, the
Employees' State Insurance Fund shall be expended only for the following purposes, namely:—
        (a) payment of benefits and provision of medical treatment and attendance to Insured Persons
    referred to in section 28 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 Chapter and the rules
    and regulations relating thereto and defraying the charges and costs in connection therewith;
       (b) payment of fees and allowances to members of the Corporation, the Standing Committee, the
    Medical Benefit Committee or other Committees thereof;
        (c) 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 staff 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 Code relating to this
    Chapter;
        (d) establishment and maintenance of hospitals, dispensaries and other institutions and the
    provision of medical and other ancillary services for the benefit of Insured Persons referred to in section
    28 and, where the medical benefit is extended to their families;
         (e) payment of contributions to any State Government, local authority or any private body or
    individual, towards the cost of medical treatment and attendance provided to Insured Persons referred
    to in section 28 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;
        (f) defraying the cost (including all expenses) of auditing the accounts of the Corporation and of
    the valuation of its assets and liabilities;
       (g) defraying the cost (including all expenses) of the Employees' Insurance Courts set up under this
    Chapter;
        (h) payment of any sums under any contract entered into for the purposes of this Code by
    Corporation or the Standing Committee or by any officer duly authorised by the Corporation or the
    Standing Committee in that behalf;
       (i) payment of sums under any decree, order or award of any Court or Tribunal against the
    Corporation or any of its officers or staff 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;
         (j) defraying the cost and other charges of instituting or defending any civil or criminal proceedings
    arising out of any action taken under this Code relating to this Chapter;
        (k) defraying expenditure, within the limits prescribed by the Central Government after consultation
    with the Corporation, on measures for the improvement of the health and welfare of Insured Persons
    and for the rehabilitation and re-employment of Insured Persons referred to in section 28 who have
    been disabled or injured; and
       (l) such other purposes as may be authorised by the Corporation with the previous approval of the
    Central Government.

How to apply this provision

1. Primary statutory test — Subject to the provisions of this Chapter and the rules and regulations relating thereto, made under this Code, the Employees' State Insurance Fund shall be expended only for the following purposes, namely:— (a) payment of benefits and provision of medical treatment and attendance to Insured Persons referred to in section 28 and, where the medical benefit is extended to their families, the provision of such…
2. Additional operative limb — (k) defraying expenditure, within the limits prescribed by the Central Government after consultation with the Corporation, on measures for the improvement of the health and welfare of Insured Persons and for the rehabilitation and re-employment of Insured Persons referred to in section 28 who have been disabled or injured; and (l) such other purposes as may be authorised by the Corporation with the previous…
3. Central Rule mapping — 16. Read the mapped provision together with this text rather than treating the concordance as a substitute for it.
4. Evidence file — retain facts and records proving the role/status of: Employee / worker, Central Government, State Government, Authority / officer, Tribunal, Corporation / EPFO / Board.

Rules, forms and cross-references

A direct concordance is not exhaustive. Central/State jurisdiction, schemes, authority appointments, saved instruments and later notifications may change the practical route without changing the section wording.

Worked example

Q&A — Section 26

Source & verification trail