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ESI scheme

ESI Scheme is implemented in non-implemented areas

November 18, 2015

The ESI Scheme is implemented in non-implemented areas in a phased manner. Under Section 56 of the ESI Act, provision of medical care under the ESI Scheme in the particular state is the responsibility of the State Governments.

The Scheme can be extended to new areas only after completion of the necessary arrangements for providing medical care from the State Governments.

The ESI Corporation, in collaboration with the State Governments, draws up a phased program for implementation of the scheme in new areas over a period of two years i.e. for the current year and for the next financial year.

In order to quicken the pace of implementation of the Scheme in new areas, the Corporation bears the entire expenditure in respect of newly implemented areas for three years (five years in the case of North-Eastern States) from initiation.

The ceiling of expenditure on full medical care has also been increased from Rs.1, 200/ per insured person, family unit per annum to Rs.1, 500/- w.e.f. 01.04.2012 and an additional incentive of Rs.50/- per I.P. Per family unit will be given to the State Government on fulfilling the specified terms and conditions for the improvement of medical scheme above the ceiling with effect from 01.04.2007. Further, an additional amount of Rs.20/- per I.P. Family unit in preventive health services, above the ceiling has been provided w.e.f. 01.04.2008.

The ESI Corporation, in its 155th meeting held on 18.01.2012 has taken up a decision that in the North-Eastern States and hilly areas a one-Doctor dispensary can be set up if there are over 1000 employees.

In view of the above, the State Government is requested to formulate desirable propositions for implementation of the ESI Scheme in new areas during the year 2015- 2016. The Regional Directors have been asked to provide the required assistance in this regard.

It has been in the past that very few centers are included in the Phased program for implementation and the actual implementation takes place in a few countries only. One of the major reasons for such slow progress is a lack of creating the infrastructure needed to provide proper medical care to the potential recipients of the benefit.

Keeping in view the difficulties in creating own infrastructure, feasibility of entering into a tie-up arrangement with reputed nursing home and diagnostic center, Etc. for primary and secondary treatments under the PPP model could be explored in consultation with local Trade Unions, Employers of the area, RD/Director/JD IIc & SSMC/SMC of ESIC.

Read more: ESI contribution limit to be increased. 

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