Medical Board is setup under section 54 of the ESI Act to assess the extent of loss of earning capacity as a result of disablement caused to the workers at their workplaces due to an employment injury or occupational disease in order to provide cash compensation in the form of periodical payments under the ESI Scheme.

Each Medical Board are normally consist of three Medical Officers and one of them is nominated as Chairman. Among them one is a Specialist in the branch of Medicine for which an IP, to be examined.

The number of Medical Boards required to be constituted in each State will depend upon the number of Insured Persons and the areas and the distances between these areas.