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LATEST NEWS UPDATES | Unorganized sector may get complete medical care under ESI scheme -Mahendra Singh

Unorganized sector may get complete medical care under ESI scheme -Mahendra Singh

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published Published on Aug 16, 2015   modified Modified on Aug 16, 2015
-The Times of India

NEW DELHI: Rickshaw pullers, autorickshaw drivers, Anganwadi and Asha workers and other such vulnerable groups may get complete medical care (from primary to tertiary) under the umbrella of employee's state insurance (ESI) scheme.

They may also be entitled for a range of cash benefits during exigencies arising out of their jobs such as death, injury, disablement, maternity and unemployment as guaranteed to workers in organized sector under the Employees' State Insurance Corporation (ESIC) Act.

In an attempt to extend the medical coverage to those working in unorganized sector, the government is also working to reduce the present threshold limit of people working in a premise or precincts from 10 to 5. At present, the ESIC Act of 1948 applies to premises/precincts where 10 or more people are employed and the employees drawing wages up to Rs 15,000 a month are entitled to health insurance cover and other benefits, under the legislation.

In a meeting earlier this month, the ESIC Board had decided to set up a committee of the corporation to look into the coverage of unorganized sector by reducing the threshold limit to five and identification of selected groups in the urban areas such as rickshaw pullers, auto-rickshaw drivers, Anganwadi/Asha/mid-day meal workers and other such categories which could be provided medical benefits, said an official from ESIC.

The decision to extend the benefits of complete medical care to such vulnerable group of workers is seen as a significant move in the direction of BJP government's effort to extend social security coverage to a large part of the unorganized workforce.

An official said the move will also make optimum utilization of huge ESIC medical infrastructure. The unorganized labour, according to latest NSSO estimates, accounts for 82.7% of the total labour force, including a significant share of workers engaged in low income generating activities.

The workforce in the unorganized sector comprising of about 45 crore of the total workforce do not get adequate labour protection in terms of job security, wages, working conditions, social security and welfare.

The government has also decided to widen the geographic coverage of ESI Scheme to across 393 districts in the country within a year i.e. by April 1, 2016. At present, the ESIC coverage is limited to industrial/commercial pockets on the basis of 'revenue villages'.

Under the ESI scheme, which is part of the ESIC Act, the government provides full medical care to an insured person and his family from the day he enters insurable employment with no ceiling on the treatment.

Besides it provides for sickness benefits in cash at the rate of 70% of wages to the insured person for a maximum of 91 days in a year, 90% of the insured person's wage as disablement benefits, 90% as dependent benefit as well as Rs 10,000 as funeral benefit to the dependents or whoever performs the last rites of the insured person.

The Times of India, 16 August, 2015, http://timesofindia.indiatimes.com/india/Unorganized-sector-may-get-complete-medical-care-under-ESI-scheme/articleshow/48498296.cms


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