ESIC Targets Over ₹2,400 Crore in Pending Dues Using Automated Chatbot Campaigns

The Employees’ State Insurance Corporation (ESIC) has launched a crackdown to recover ₹2,473 crore in pending social security funds tied up in 6.45 lakh recovery certificates. These amounts have remained pending for over a decade due to various structural and legal hurdles.

Under the ESI Act, 1948, the ESIC issues recovery certificates when employers fail to pay mandatory social security contributions, interest, or damages. These collections fund health insurance and self-sustaining programmes for workers. While officials historically relied on coercive actions—such as attaching movable or immovable property, or arresting defaulters in extreme cases—ministry sources indicate the ESIC has shifted toward a technology-led approach.

Taking inspiration from the Income Tax department's 'Nudge' campaign, the ESIC deployed an automated chatbot system to prompt employers to settle their dues. Across various nationwide efforts under the Social Security Code, 2020, authorities made 24,521 attempts to recover ₹1,029 crore in arrears. Prior to using the chatbot system, the ESIC had managed to recover approximately ₹77 crore.

The tech-driven campaign began on February 2, targeting individual companies in Haryana with arrears of ₹5 lakh or more. Messages were sent to 133 registered mobile numbers, delivering to 103 numbers for a 77 per cent delivery rate. Of those, 79 messages were read, leading to an immediate recovery of over ₹3.27 crore on that day alone. Failed deliveries were attributed to numbers not linked to active WhatsApp accounts.

Subsequent efforts scaled up significantly. On February 23, messages were sent to 957 out of 1,191 targeted recovery certificates, achieving a 98 per cent delivery rate and 660 reads. On May 1, a larger sample of 12,237 targeted audiences was processed, reaching 9,206 mobile phones with a 97 per cent strike rate. A day later, on May 2, the ESIC reached out to 14,313 numbers out of 17,714 targeted audiences, achieving a 97 per cent delivery rate and 9,485 reads.

By May 19, the ESIC recovered ₹37.24 crore across 1,479 cases. According to ESIC sources, the full impact of recoveries received beyond May 19 is still under assessment, though it is expected to cross ₹150 crore.

Despite these technological interventions, significant portions of recovery certificates remain blocked. A major fraction is held up due to employer challenges pending in ESI Courts or High Courts. Other claims are locked in proceedings before the National Company Law Tribunal (NCLT) or under liquidation, while many establishments have shut down operations, filed for bankruptcy, or feature untraceable promoters with no attachable physical assets.

"The shift from traditional coercive actions to data-driven nudges highlights how technology can streamline regulatory compliance and financial recovery. For businesses and employers, this development signals that statutory obligations like social security contributions are increasingly monitored through automated digital channels. Maintaining clean financial records and proactively addressing compliance issues is now more critical than ever to avoid sudden administrative actions and legal friction." — Dr. Shishir Gupta, Founder & CEO, StartupLanes