Sections 36-37 explained: this guide covers what it means, who it applies to, the step-by-step process, documents required, fees, due dates and penalties in India — so you can stay compliant with confidence and avoid costly mistakes.
Section 36 says a disease listed in the Third Schedule as peculiar to an employment is treated as an "employment injury" if the employee has been in that employment for the stated time. Section 37 sends disablement questions to a medical board and sets out review and appeal routes.
A disease listed against an employment in Part A, B or C of the Third Schedule is deemed an employment injury, unless the contrary is proved, if the employee worked in that employment as required: any time for Part A, a continuous period of at least six months for Part B, and a period the Corporation specifies by regulations for Part C (s.36(1)). Any other disease earns no benefit unless directly attributable to a specific injury by accident in the course of employment (s.36(2)). Questions of permanent disablement and loss of earning capacity go to a medical board (s.37); appeals lie to the medical appeal tribunal or the Employees' Insurance Court.
Section 36: occupational diseases
The Third Schedule lists employments and the diseases peculiar to them, in three parts. Our separate article on the Schedule will go through the entries; here the focus is on how section 36 uses them.
| Part of Third Schedule | Condition for deemed employment injury |
|---|---|
| Part A | Employee is in an employment specified in Part A and contracts a disease specified there as peculiar to that employment |
| Part B | Employee has been in the Part B employment for a continuous period of not less than six months and contracts the specified disease |
| Part C | Employee has been in the Part C employment for such continuous period as the Corporation specifies by regulations for each employment |
If these are met, the disease is, "unless the contrary is proved", deemed to be an employment injury arising out of and in the course of employment (s.36(1)). The burden to prove otherwise lies on whoever disputes the link.
Section 36(2) closes the door on other diseases: no benefit is payable for a disease not covered by sub-section (1) unless the disease is directly attributable to a specific injury by accident arising out of and in the course of employment. So a general illness that an employee connects to work, but which is not in the Schedule, is outside the benefit unless that accident link exists. Section 36(3) adds that the accident presumption in section 34(1) does not apply to cases under section 36; read sections 34 and 35 for that presumption.
An employer should note the six-month condition for Part B, and keep dated records of how long each employee has worked on a given process. For a tailored review, our labour law compliance team can help.
Section 37: the "disablement question"
Section 37(1) defines the disablement question. It covers whether the accident has resulted in permanent disablement; whether the extent of loss of earning capacity can be assessed provisionally or finally; whether the assessment is provisional or final; and, for a provisional assessment, the period it holds good. A medical board, constituted under the regulations, decides these.
| Sub-section | Point |
|---|---|
| 37(2) | The Corporation refers a permanent disablement case to a medical board; a provisional assessment must be referred again before the period it covers ends |
| 37(3) | The board may review its decision at any time on fresh evidence that it rested on non-disclosure or misrepresentation of a material fact, fraudulent or not |
| 37(4) | The board may review an assessment if there has been a substantial and unforeseen aggravation of the injury's results; proviso: only if substantial injustice would otherwise result |
| 37(5) | Without the leave of a medical appeal tribunal, no review under (4) on an application made less than five years after the assessment, or six months for a provisional assessment; the revised period cannot include time before the application |
| 37(6) | On review, the board may deal with the case as on an original reference, including making a provisional assessment even where the assessment under review was final |
| 37(7) | Appeal rights, below |
Appeals
Under s.37(7)(a), an Insured Person or the Corporation aggrieved by a board decision may appeal, in the manner and time the Central Government prescribes, to either (i) the medical appeal tribunal constituted under the regulations or (ii) the Employees' Insurance Court directly. Two provisos bar an appeal where commutation has been applied for and the commuted value received (Insured Person), or where the Corporation has paid the commuted value on the board's decision (Corporation). Under s.37(7)(b), a party who first appeals to the tribunal has a further right to a second appeal to the Employees' Insurance Court, in the manner and time prescribed by the appropriate Government.
The Central Rules, 2026 fill in the time limits:
- Rule 23: appeal to the Medical Appeal Tribunal by application within ninety days of communication of the board's decision, in the form specified in the regulations; the tribunal may entertain a late application for sufficient reasons. It can be sent to the Chairperson by speed post (with registration) or presented personally.
- Rule 24: appeal to the Employees' Insurance Court within ninety days of communication of the decision of the board or the tribunal, again with a sufficient-reason exception; the State Government's rules on form and manner for applications to that Court apply.
Because the Employees' Insurance Court is constituted by the State Government (see sections 48 and 49), its procedure follows the State's rules. The Central Rules apply where the Central Government is the appropriate Government; where the State Government is, its own rules apply.
Example
A worker in a listed Part B employment works there continuously for eight months and contracts the disease listed against it. Under s.36(1) the disease is deemed an employment injury. The Corporation refers him to a medical board, which provisionally assesses his loss of earning capacity and sets a period. Before that period ends the Corporation must refer him again (s.37(2)). If he is unhappy with the decision, he can apply to the medical appeal tribunal within ninety days under rule 23, or go directly to the Employees' Insurance Court.
What the benefits are
Once a disease is an employment injury, disablement benefit follows: see sections 32 and 33 and our post on disablement benefit under ESI. Death from such a disease can lead to dependants' benefit under section 38.
Need help with occupational disease and ESI claims?
Good records of job role and duration are the employer's strongest protection when a claim lands. If you would like help setting up those records or understanding a disablement dispute, our labour law compliance team is available to assist.
Key takeaways
- Section 36 deems a Third Schedule disease an employment injury if the stated employment condition is met (Part A no minimum; Part B six months continuous; Part C per regulations).
- Other diseases earn benefit only if directly attributable to a specific accident injury (s.36(2)).
- A medical board decides the disablement question (s.37(1)).
- Review on fraud or non-disclosure can happen at any time; aggravation review needs leave if sooner than five years (six months if provisional).
- Appeal to the medical appeal tribunal or the Employees' Insurance Court within ninety days under rules 23 and 24.
Read next
- Sections 34 and 35: Accidents in the course of employment
- Section 38: Dependants' benefit
- Sections 48 and 49: Employees' Insurance Court and matters it decides
- Disablement benefit under ESI
Disclaimer: Based on the Code on Social Security, 2020 (as enacted) and, where noted, the Code on Social Security (Central) Rules, 2026 (G.S.R. 344(E), 8 May 2026), as on 30 September 2026. The Code is in force from 21 November 2025; some provisions may be notified later, and State Governments make their own rules for establishments where the State is the appropriate Government. Verify the current position before acting.