Draft Report of the High Level Group on Services Sector


c Employees State Insurance (ESI)



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7.2.7c Employees State Insurance (ESI)
The ESI was conceived of as a very good scheme for taking care of the healthcare problems of industrial employees. However, on account of poor implementation of the scheme a very small number of employees of shops and establishments are able to avail of its benefits. The experience of these employees is that issuance of ESI identity cards takes months, generally the doctors are not available, and medicines are in short supply. The requirement that ESI contribution be paid even in respect of temporary employees who, because of the short duration of their service, can never hope for any benefit from the ESI hospitals, is regarded as particularly onerous. The High Level Group suggests that the Government should set up a Committee to evaluate the performance of the ESI scheme and make suggestions for reform. Since now a number of health insurance companies have come up in the private sector employers/employees should be given the option of subscribing to alternative health insurance programmes.

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