30th January, 2003
Ministry of Labour & Empowerment  


WE ARE FULLY COMMITTED TO PROVIDE QUALITY AND SATISFACTORY HEALTH SERVICES TO THE INSURED PERSONS UNDER ESI SCHEME - DR. SAHIB SINGH


Minister of Labour, Dr. Sahib Singh said that we are fully committed to provide quality and satisfactory health services to the insured persons covered under ESI Scheme. Dr. Verma was speaking after accepting the report presented by Shri M.C Verma, Chairman of ESI Review Committee. He described the report as exhaustive and meanighful with necessary inputs for improvement. He said that we have at present 80 lakh insured persons and whereas the actual beneficiaries covered under the ESI Scheme is over 3,20,00,000. He further said that the Government had set up Shri M.C Verma Committee to review the functioning of ESI Scheme, because of the fact that the scheme was not coming up to the expectations of all stakeholders particularly the insured persons covered under the scheme. He further emphasised that in order to provide the quality health services to the beneficiaries, we are going to open 16 model hospitals in major states of the country with the total expenditure of Rs.180 crores. The Minister also added that the report will be studied and then will be considered by ESIC for implementation of the major recommendations. He also disclosed that we are bringing a comprehensive bill in the coming session of the Parliament for proving social security net to 36 crore workers in the unorganised sector. The government is fully committed to bring this population under health insurance scheme of ESI.

The ESI Review Committee was set up in August this year by the Ministry of Labour. The seven member committee headed by Mr. M.C Verma, IAS (Retd.) included representatives from employers, employees, medical profession besides an actuarial expert. Shri M. C Verma also made a visual presentation before the press, the senior officers of the Ministry and ESIC.

The main features of the terms of reference of the Review Committee included; to study the recommendations of the second National Commission on Labour pertaining to ESIC; study the present functioning of ESIC for identifying areas of deficiency and suggest measures for improvements in quality of service delivery; to redefine the roll of State Govts. In the delivery of medical services and also identify areas within the scheme for private/public cooperation for upgradation of services.

The committee has made wide ranging recommendations for overall improvement of services under the ESI scheme and widening the scope of social security services. The committee has recommended enhancement of wage ceiling for purpose of coverage from the present Rs.6500/- to a minimum of Rs.9,000/- for extension of social security cover to a larger number of workers.

It has also recommended extension of social protection under the ESI scheme to unorganised sector and bringing down the threshold of coverage from the present 10 employees to 5 employees or more for coverage of factories and establishments under the ESI Act, 1948. For upgradation of medical services under the scheme, the committee has recommended enhancement of ceiling on expenditure of medical benefit from the present Rs.600/- to Rs. 850/- per insured person per annum.

The committee has also opined 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 medical services. The report also suggests that the State Govts. and the Central Govt. should each contribute 1/9th of expenditure incurred on medical care of ESI beneficiaries and any expenditure above the proposed ceiling should be shared between the State Govts. and the ESIC on a 50:50 basis.

Yet another recommendation of the committee is that no new ESI hospitals and dispensaries should be constructed as long as any additional service requirements could be out-sourced through tie-up arrangements with Government or private medical institutions or panel clinics. It has also suggested that the Corporation should concentrate consolidating, maintaining and upgrading the existing infrastructural network of ESI hospitals and dispensaries.

The recommendations of the committee are based on extensive visits to field establishments, hospitals and dispensaries of the Corporation besides intensive interaction with important stake holders and interest groups like employers, insured persons, State Governments and administrators of the scheme at the grass roots level.

The ESI scheme today stands implemented at 680 centres in the country and covers about 310 lakh beneficiaries. Primary and secondary medical care is provided through a network of 1452 ESI dispensaries, 3000 panel clinics and 141 ESI hospitals with 27000 beds for in-patient services.