The Hindu : Front Page : ESIC enhances expenditure on medical benefit

Online edition of India's National Newspaper
Sunday, Dec 24, 2006
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ESIC enhances expenditure on medical benefit

Special Correspondent

Many other decisions at meet

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NEW DELHI: The Employees State Insurance Corporation (ESIC) on Saturday enhanced the expenditure on medical benefit from the present Rs 900 per insured person every year to Rs 1,000.

It also decided to increase the limit of exemption from paying employees contribution for those drawing daily wages up to Rs.70. At present the exemption limit is Rs.50.

As a result, about 5.70 lakh employees will be exempted from paying their contribution under the ESI scheme. However, the employer's contribution for them will have to be paid.

The decisions were taken at the 137th meeting of the ESIC.

The meeting, chaired by Labour Minister Oscar Fernandes, decided to enhance the sickness benefit to 120 per cent of the standard benefit rate, against the existing 100 per cent.

It also decided to enhance disablement benefit, including temporary and permanent disability benefit, from the existing 140 per cent to 150 per cent of the standard benefit rate.

The existing limit of reimbursement for funeral expenses had been enhanced from Rs.2,500 to Rs.3,000.

These decisions would entail the Corporation a total liability of Rs.61 crore.

The ESIC has achieved the highest ever revenue income of Rs.2,410.61 crore. Of this Rs.1,933.56 crore has come through contribution income.

The Corporation was able to distribute Rs.31.44 lakh cash benefit payments to the tune of Rs.273.73 crore.

During the year, the total expenditure on medical benefits has gone up to Rs.724.11 crore.

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