The Hindu : ESI panel for enlarging coverage to benefit working class

Online edition of India's National Newspaper
Friday, Jan 31, 2003

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ESI panel for enlarging coverage to benefit working class

By Our Special Correspondent

NEW DELHI Jan. 30. In its wide-ranging recommendations, the Employees State Insurance Corporation (ESIC) Review Committee has favoured enhancement of wage ceiling for coverage for medical and social security benefits from the current level of Rs. 6500 to Rs. 9000 a month besides extending the facilities under the scheme to the organised sector.

Sharing the recommendations contained in the report of the panel, headed by M.C. Verma, after its presentation to him, the Union Labour Minister, Sahib Singh Verma, said the committee had suggested several steps for streamlining the ESI scheme by removing the deficiencies and enlarging its coverage to benefit the working class in a large measure and to ensure optimal use of the facilities and further improvement of services.

Mr. Verma said his Ministry would take at least a month's time to study the panel's recommendations. In reply to questions, he said a legislation for providing social security to 36 crore workers in the unorganised sector would be introduced in the Budget session of Parliament beginning next month.

While strongly recommending extension of social protection under the ESI scheme to the unorganised sector, the committee, Mr. Verma said, had suggested bringing down the threshold of coverage from the present 10 employees to 5 employees or more for coverage of factories and establishments under ESI Act, 1948.

For upgradation of medical service, the panel has sought enhancement of ceiling on expenditure of medical benefit from the present Rs. 600 to Rs. 850 per insured person per annum. It has expressed the view that subsidiary corporations should be set up in the States for direct flow of funds from ESIC as well as for ensuring functional autonomy at the grassroots level for overall improvement in the medical services.

The report also suggested that the State Governments and the Centre should each contribute one-ninth of expenditure incurred on medical care of ESI beneficiaries and any expenditure above the proposed ceiling should be shared between the State Governments and ESIC.

Another vital recommendation is that no new ESI hospital and dispensary should be constructed as long as any additional service requirements could be outsourced through tie-up arrangements with Government or private medical institutions or panel clinics.

The corporation should concentrate on consolidating, maintaining and upgrading the existing infrastructural network of ESI hospital and dispensaries.

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