18th December, 2002
Ministry of Labour  


ESIC ENHANCES DISABLEMENT AND DEPENDENCE BENEFIT; INCREASE RANGES UPTO 330 PERCENT

THREE MORE MODEL HOSPITALS BEING TAKEN OVER BY THIS WEEKEND


The Employees State Insurance Corporation has decided to further enhance the rates of permanent disablement benefit and dependants benefit (family pension) ranging from 7% to 330% in respect of disabled workers and dependants of deceased insured persons. The decision was taken at the 124th meeting of the Corporation chaired by the Minister of Labour Dr. Sahib Singh here today to compensate for the erosion in the real value of the benefit rates. The increase varies depending upon the year in which death or disablement occurred. This will benefit over two lakh beneficiaries who are currently on the pay rolls of permanent disablement and death benefits of the Corporation.

Inaugurating the Meeting, the Chairman of the ESIC Dr. Sahib Singh said that the existing ESI hospitals at Nachharam (Hyderabad), Jaipur, Ludhiana, Chandigarh and Sahibabad have been taken over by the Corporation to be run as model Hospitals . He said the proposed Model hospitals at Asramam (Kerala), Ranchi and Phulwari Sharif (Patna) are being taken over by the week end while those at Guwahati, Rajajinagar (Bangalore), Kollam (Kerala) is on the cards. The Minister advised the ESIC management to follow up the issue with the other State Governments vigorously and seek their consent for handing over rest of the proposed model hospitals to the Corporation by the end of this month. The proposal of setting up of a separate wing of Indian System of Medicine in each of the model hospitals was also approved at today’s meeting. Dr. Sahib Singh called for more flexibility in ESI mechanism in order to extend its coverage to the workers in the informal sector.

The Minister of State for Labour and Vice Chairman of the ESIC Shri Ashok Pradhan called for organising Health Melas for workers in order to diagnose various diseases at an early stage. He appreciated the Corporation’s decision to set up a model hospital in each state.

The Corporation also decided to grant notional extension of employment related accident occurring on way from residence to place of work and vice versa after consultations with the Ministry of Law. This will provide relief to the hundreds of workers who get permanently disabled or even die in road accidents in the process of commuting between the residence and the place of work.

The proposals related to enhancement of wage ceiling for coverage under the ESI Act and expansion of scope of coverage by reducing the threshold in terms of number of employees besides coverage of seasonal factories etc. were deferred till the submission of report by the Verma Committee. The Committee has been assigned the task of suggesting ways and means for bringing about need based improvements in the scheme.

The Meeting also adopted the Annual Report for the year 2001-02. The report indicated that as many as 5 lakh insured persons have been deprived of the social security cover during the year 2001-02 with the crossing of existing wage ceiling and other factors. This has brought down total number of beneficiaries under the scheme to 310 lakh. The Corporation’s share of expenditure on medical care was Rs.543 crore whereas the expenditure on cash benefits amounted to Rs.300 crore. The total amount outstanding against employers as arrears of contribution had touched a new high of 748 crore by the end of March 2002. The Corporation was able to recover about Rs.72 crore during the year on account of outstanding arrears through its revenue recovery mechanism.

Later addressing the media persons, the Labour Minister said that a Committee under the Minister of State for Labour, Shri Ashok Pradhan has been set up to monitor the functioning of the Indian System of Medicine in ESI Hospitals. He said that all the 52 members of the ESI Corporation have been authorised to visit ESI hospitals/dispensaries and monitor their functioning. He said that taking a cue from the adage "prevention is better than cure", it has been decided to set up facilities like Yoga, Naturopathy etc. at in district parks in the capital after taking permission from the concerned local authorities.

The representative members of Employees and Employers, the Labour Secretary Dr. P.D. Shenoy, Director General ESI, Smt. Asha Murthy and senior officers of the Labour Ministry and the ESIC participated in the meeting.