There is no option to opt ot of ESI Scheme per se. However, if you have facilities to give medical benefits to your employees and their families in such a manner that the facilities available in the hospital are better than that offered by ESIC then the ESIC will exempt your establishment from the operation of ESI Act. In order to get exemption, the facility should be superior to the one available at ESI hospital. Also the employer should be giving all accident compensation, leave with wages for such long days as are paid by the ESI and post retirement medical benefits.
I don't think that any private medical insurance will cover a family member of the employee aged 70 or 80 years of age. I doubt if any private insurance company will extend coverage to an employee who is already having some disease(pre existing disease). I don't think that any insurance company will compensate leave of absence for a period upto 90 days!! 24th February 2018 From India, Kannur