How To Close The ESI - CiteHR
Harsh Kumar Mehta
Consultant In Labour Laws/hr
Khaja Vali
+2 Others

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Dear All,
I am working as HR Executive in Pvt Ltd Company, Our employees said no use of the paid ESI, at the time treatment nobody responded well, So pls close the the a/c. Please help me it is possible to close the ESI A/C.

It is not possible to close the ESI a/c for the above reasons. Varghese Mathew

1. A large number of employees i.e. about 1.65 crores and their family members total about 7.5 crores are covered under ESI Scheme. The employees and family members covered under ESI Act get benefits as a matter of their legal rights. In such like large scheme, the short-comings and delays are easy to be detected. However, I will suggest that if there are any short-comings or defects, the same may be brought to the knowledge of senior management of dispensary/hospital or branch office of ESIC so that the same are improved and short-comings are removed. The issues can also be raised in Local Committees as constituted under said Act and can also be raised in Shikayat Adalats being organised by the department every month on a stipulated date.

2. Even if you engage any private hospital for treatment of your employees, such like short-comings are likely to be detected in any system. Further if you will get your employees covered under private commercial insurance, the said system is always having a cap on total expenditure, reimbursement is difficult and is also not free from such like defects/short-comings as pointed out by the person who started this thread.

3. The coverage under ESI Act, 1948 and rules/regulations framed thereunder is statutory and one has no option except to make compliance. If an employee today feels that there is no use of ESIC services, perhaps his outlook/views may change in future as and when he or any of his family members or his colleagues happens to get the benefits and medical services of said institutions in the contingencies as mentioned in said Act.

ESIC is not an optional , its compulsory , also if employees are not getting proper treatment at allocated dispensary , they can be reffered through higher hospitals throught refferrals from their allocated dispensary.

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