Owing to protest from employers the matter seems to be under hold. But I have a different opinion about the scheme. I think ESI is the only scheme which takes care of existing/ preexisting diseases and which takes care of elderly people irrespective of their age. That is, when an employee is enrolled, he gets treatment and benefits even if the disease exists at the time of his enrolling. Again, which medical cover gives medical benefits to your parents aged above 70 or 80? And also there is no hidden things and every thing is very transparent. Subject to certain conditions on contribution, super speciality treatment is also available.
From the employers' angle also, I feel a contribution of 4.5% on a salary of say, Rs 25000 per month seems to be a huge amount but when we work out the cost otherwise, ie, premium to cover hospitalisation and medical care of employee, his/ her spouse, children parents (without age restriction), leave due to hospitalisation (which may extend upto 90 days under ESI) accident benefits, maternity benefits, funeral and other benefits, it is cheaper than any medical policy.
The major problem is not the payments to ESI Corporation but the way in which the Corporation runs. The employees will have to use the worn out facilities and for that too have to wait for the officers/ bureaucrats and the misuse of the facilities by unscrupulous employees themselves by getting ESI leave by influencing the medical officers or even bribing them. If something could be done to prevent its misuse or at least make section 91B of the ESI Act more live so that misuse of benefits can be prevented, this seems to be good.
Madhu.T.K