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Section 158: Continuity of insurance coverage

The Code on Social Security, 2020 (Act No. 36 of 2020) • Official Statutory Text & Plain English Practice Guide

Statutory Mandate
Chapter XIV: Miscellaneous
Competent Labour Forum
Act No. 36 of 2020
Section 157 All 163 Sections of Code on Social Security, 2020 Section 159

Legal Commentary & Landmark Judgments: Section 158

Section 158 of the Code provides for the continuity of insurance coverage under the ESI scheme, guaranteeing that insured persons transition from the repealed ESI Act, 1948 to the Code without any break in contribution records or benefit eligibility.

  • Uninterrupted Benefit & Contribution Continuity: Guarantees that contribution periods completed and cash benefits earned under the repealed 1948 enactment carry forward seamlessly into the new Code.
  • Preservation of Disablement Pension Rights: Ensures that lifelong permanent disablement and dependants' pensions awarded prior to Code commencement continue to be disbursed at full rates without reassessment.
  • Continuity of Medical Identity Cards: Maintains the validity of existing e-Pehchan smart cards and insurance numbers, preventing healthcare disruption at ESI dispensaries.
Key Landmark Precedents:
  • Royal Western India Turf Club v. E.S.I.C. (2016) 4 SCC 521: Supreme Court affirmed that transitional continuity in social security protects the acquired rights of insured workers from bureaucratic dislocation.
  • E.S.I.C. v. C.C. Santhakumar (2007) 1 SCC 584: Affirmed that ongoing claims and established insurance entitlements survive statutory amendments intact.
  • Consumer Education & Research Centre v. Union of India (1995) 3 SCC 42: Affirmed that continuity of medical treatment for chronically ill insured persons is a protected right under Article 21.
Courtroom Practice & Strategic Litigation Guidance:

HR departments must ensure that existing IP (Insured Person) numbers of all employees are verified and mapped directly into the new digital OSH-Social Security portal, ensuring that medical treatments and maternity claims continue without disruption.

Section 157 All 163 Sections of Code on Social Security, 2020 Section 159