Employees' State Insurance Act, 1948 · Chapter II: Corporation, Standing Committee and Medical Benefit Council
Section 16: Appointment of a Director General and a Financial Commissioner
The Employees' State Insurance Act, 1948 was repealed and replaced by the Code on Social Security, 2020 from 21 November 2025. It still applies to matters and proceedings from before that date, as the repealing law provides.
[(1) The Central Government may, in consultation with the Corporation, appoint a Director General and a Financial Commissioner.]
(2) The Director General shall be the Chief Executive Officer of the Corporation.
(3) [The Director General and The Financial Commissioner] shall be whole-time officers of the Corporation and shall not undertake any work unconnected with their office without the sanction of the Central Government [and of the Corporation].
(4) [The Director General or the Financial Commissioner] shall hold office for such period, not exceeding five years, as may be specified in the order appointing him. An outgoing [the Director General or Financial Commissioner] shall be eligible for reappointment if he is otherwise qualified.
(5) [The Director General or the Financial Commissioner] shall receive such salary and allowances as may be prescribed by the Central Government.
(6) A person shall be disqualified from being appointed as or for being [the Director General or the Financial Commissioner] if he is subject to any of the disqualifications specified in section 13.
(7) The Central Government may at any time remove [the Director General or the Financial Commissioner] from office and shall do so if such removal is recommended by a resolution of the 2. Subs. by Act 29 of 1989, s. 4, for “nominated” (w.e.f. 20-10-1989). 3. Subs. by s. 4, ibid., for “nomination” (w.e.f. 20-10-1989). 4. Subs. by s. 6, ibid., for sub-section (1) (w.e.f. 20-10-1989).
Corporation passed at a special meeting called for the purpose and supported by the votes of not less than two-thirds of the total strength of the Corporation.
Source: India Code (Legislative Department), the text of the Act as it stood before its repeal. Words in square brackets [ ] were inserted or substituted by later amending Acts, and *** marks words omitted by an amendment. The amendment footnotes are not reproduced here. Official text on India Code.
Supreme Court judgments citing the section 16
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