ESIC Adjourns Proposal to Free Workers from Mandatory Health Scheme

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The Employees’ State Insurance Corporation (ESIC) has postponed the proposal to provide an option to its 1.95 crore subscribers to choose health insurance products available in the market in lieu of the mandatory health scheme run by ESIC.

"The proposal to provide an option to buy health insurance products in lieu of ESI, was taken up for discussion in the board meeting, which was held under the chairmanship of Mr. Bandaru Dattatreya, Labour Minister. But no decision was taken as unionist expressed reservation against it," said Mr. G Sanjeeva Reddy, President of Indian National Trade Union.

Further, Mr. Bandaru Dattatreya stated the ministry will further examine the proposed amendment of ESI Act, 1948 after taking into account views of meetings and stakeholders of ESIC.

With regard to medical education; ESIC has decided to continue to run its 4 medical colleges in Rohini (Delhi), Joka (Kolkata), K K Nagar (Chennai) and Rajajinagar (Bangalore) but no further medical education project will be taken by ESIC. Board members reiterated that imparting medical education is not the activity of ESIC and so it should exit the same. However, within this approach, each medical college may need specific decision.

Source: This article has been adapted from the article "ESIC defers proposal on private health insurance products" that appeared on April 7, 2015 in economictimes.com.

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