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Labour Laws
Notes of the Scheme have recommended that the Corporation take over the administration of the
medical benefit. There has been no decision on this recommendation but the process of
taking over the administration of medical benefit by the Corporation is reported to have
commenced with the Corporation taking charge of a few hospitals to be run as model
ones.
If the Corporation is free from this constraint, it should be possible for it to expand medical
facilities significantly. It can become a major instrument for providing Universal Health
Care and assume responsibility for providing medical care to all workers in the organised
as well as the unorganized sector.
Question
Critically analyse the above case.
Source: http://thealternative.in/content-type/views/rka-subramanya-the-role-of-esic-in-universal-health-care/
13.8 Summary
l z The comprehensive and well-designed social security programme is administered by an
apex corporate body called the Employee State Insurance Corporation.
l z It comprises members representing vital interest groups that include, employee, employers,
the central and state government, besides, representatives of parliament and medical
profession.
l z The corporation is headed by the union minister of labour, as its chairman, where as, the
director general, appointed by the central government functions as its chief executive
officer.
l z A standing committee constituted from amongst the members of the corporation, acts as
an executive body.
l z The medical benefit council, constituted by the central government, is yet another statuary
body that advises the corporation on matters related to effective delivery of services to the
beneficiary population.
l z The corporation with its central head quarters at New Delhi operates through a network of
26 regional and sub- regional offices located in various States.
l z The respective state governments take care of the administration of medical benefit except
in case of Delhi and Noida, Greater Noida areas of Uttar Pradesh, where, the corporation
administers medical facilities directly.
l z The Government of India through notification in the Official Gazette has amended the
Employees’ State Insurance (Central) Rules, 1950. Accordingly, as per rule 50, the wage
limit for coverage of an employee under Employees State Insurance Act has been enhanced
from ` 10,000 to ` 15,000 with effect from 1st May 2010.
l z ESI Corporation has taken a decision to set up one hospital in each State as Model
Hospital.
l z The Central Government appoints a chairman, a vice-chairman and other members
representing interests of employers, employees, state governments/union territories and
medical profession. Three members of the Parliament and the Director General of the
Corporation are its ex-officio members.
228 LOVELY PROFESSIONAL UNIVERSITY
