ESIC defers proposal on private health insurance products

The Employees' State Insurance Corporation has deferred the proposal to provide an option to its 1.95 crore subscribers to choose health insurance products available in the market in lieu of mandatory scheme run by it.
"The proposal to provide an option to buy health insurance products in lieu of ESI, was taken up for discussion in the board meeting today. But no decision was taken as unionist expressed reservation against it," said President of Indian National Trade Union Congress G Sanjeeva Reddy who is also on the board of ESIC.
"ESI scheme provides many benefits to the workers and their family members. There is no such product available in the market as of now. Thus it is not proper to amend the law for the purpose," he added.

Labour Minister Bandaru Dattatreya who chaired the meeting has stated that the ministry will further examine the proposed amendment of ESI Act, 1948 after taking into account the views expressed during the meeting by the members as well as other stakeholders of ESIC, a statement said.
"It was felt that if workers have an option, it is likely to bring in competition, leading to improvement in the services by ESIC," it added.
The minister said that consensus for the requisite amendments will be arrived amongst all the stakeholders.

The press statement said: "On the issue of medical education, the board members reiterated that medical education is not the core activity of the ESIC and that it should exit the same. However, within this broad approach, each medical college project may require specific decision."

ESIC has already decided to continue to run three medical colleges in Joka, Kolkata, K K Nagar, Chennai and Rajajinagar, Bangaluru.
The State Governments have been requested to convey their decision regarding taking over of other medical college projects.
The members said that the revenue of the ESIC comes from the workers and investments made out of that, should not go waste.
The meeting of the ESIC board once again authorised its Chairman to take decision in the mater and finalise terms and conditions on a case by case basis for transfer of the Medical college Projects to the state governments.

"The discussion on Medical Education in ESIC was aimed towards its finality. It was also decided that no further Medical Education project will be undertaken by ESIC," it added.