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Unit 13: The Employees’ State Insurance Act, 1948

been given adequate administrative and financial powers for taking decisions for improvement Notes
in medical care facilities.

Did u know? ESI Corporation has decided to provide primary and secondary medical care
services in the areas directly where the concentration is more than 5000 and there is no
dispensary within 8 kms (5 kms in hilly areas) and where concentration is 25000 (15000 in
hilly areas) and there is no hospital within 25 kms. This facility will be available till the ESI
establishes its own hospital and dispensary.
Initial equipments for ESI Hospitals
The limit of expenditure for the purpose of providing initial equipments at the time of
commissioning a new hospital is given below:-
1. Upto 50 beds ` 60 lacs
2. For 51 to 100 beds ` 85 lacs

3. For 101 to 250 beds ` 100 lacs
4. For 500 and above ` 150 lacs
Approved the Action Plan for the year 2000-2001 to develop the Super specialty within the
existing ESI Hospitals and review of action on previous Action Plans for 1998-99 and 1999-2000.
The State Govt. shall have to delegate adequate powers to the field level functionaries i.e. Director
ESI Scheme, Medical Superintendents of ESI hospitals and Medical Officer In-charges of the ESI
dispensaries for ensuring hassle free day-to-day functioning including purchase of drugs and
dressings, maintenance of equipments and reimbursement of bills etc.
ESIC has taken a decision to provide primary, secondary and tertiary medical care services
directly in the areas where there is no ESI Hospital within a distance of 25 kms. The facilities of
ESIC would now be extended to workers in the unorganized sector under Rashtriya Swasthya
Bima Yojna by making optimum use of under utilized hospitals and dispensaries of ESIC
Corporation.

Self Assessment

State whether the following statements are true or false:

16. ESI Corporation has taken a decision to set up one hospital in each State as Model Hospital.
At present, ESIC has set up Model Hospital in 20 states.
17. ESI Corporation has decided to provide primary and secondary medical care services in
the areas directly where the concentration is more than 5000 and there is no dispensary
within 8 kms.
18. ESIC has taken a decision to provide primary, secondary and tertiary medical care services
directly in the areas where there is no ESI Hospital within a distance of 25 kms.

13.7 Penalties and Damages

The Act provides for penalties and damages for various offences. It also provides that if any
person commits any offence after having been convicted by the court, he will be punishable,
for every such subsequent offence, with imprisonment for a term which may extend up to `
2,000 or both. If the subsequent offence is for failure to pay any contribution, then for every
such subsequent offence a person is liable to punishment for a term of imprisonment which may
extend up to one year and which shall not be less than 3 months; and he will also be liable to pay.
a fine up to ` 4,000:

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