ESIC Now in All Maharashtra Districts: How Will This Affect Your Business?

Dear All,

Please find a notification dated 26.07.2016 implementing ESIC in all the districts in Maharashtra effective from 01.08.2016 for your information and implementation.

Concerns About ESIC Implementation in Maharashtra

Sir, as per the norms set by ESIC itself, there must be an ESIS dispensary for covered insured persons within an easy distance, say within 8 to 10 kilometers. The important question is whether ESIC has made all arrangements for its medical services within a reasonable distance before the issuance of the said notification. If not, then what is the use of such an extension of the scheme to the entire district without making arrangements for reasonable medical care? This will result in more criticism and disappointment of ESIS in big states like Maharashtra.

In my opinion, the extension of the area of the ESI Act, 1948 under section 1(3) of the said Act without making adequate medical arrangements within a reasonable distance is a futile and useless exercise. What is the use if the insured person or their family member is required to visit the designated ESI dispensary/hospital at a faraway place, say about 10 or more kilometers away, and waste the whole day procuring a few tablets of medicines, especially if the doctor is available?

Cost Implications of Medical Arrangements Under ESIS

To make medical arrangements under ESIS or any other scheme is a very costly affair. In remote areas of a district where there are only a few insured persons or their family members, the establishment of a separate ESIS dispensary or the appointment of a Panel Doctor will be a costly affair and will raise medical costs. Are the State Governments ready to bear such enhanced costs for the said scheme?

I am doubtful about the authenticity of the attachment as it does not contain the official ESIC logo anywhere. Moreover, the departments mentioned in the cc line are questionable. Some concerned officials from ESIC need to certify the correctness of the so-called circular.

What you have raised is very proper and true. Unless adequate medical facilities are provided to IPs and their family members, merely adding areas into its fold, the purpose of this social security legislation will never be served.

State-Owned ESI Corporation in Maharashtra

However, the news is that the Government of Maharashtra is establishing a state-owned ESI Corporation to implement the provisions in the state. This would mean the powers of Central ESIC will be taken away. In such a case, the present wide gap between ESIC Central Authorities and the State Medical Department will be reduced. Hopefully, this move will help to provide better services than ever before to IPs and their families in the state.

ESIC Extension to 20 Cities in Maharashtra

Mehtaji has covered all valid points. Today, on 17.08.2016, the local newspaper Lokmat of Nashik published an advertisement regarding the above subject. I have also spoken to the concerned ESIC representative. The ESIC Act has been extended to 20 cities in Maharashtra from 01.08.2016, including industries, travel, hotels, restaurants, theaters, and newspaper agencies. The cities are:

1. Thane
2. Raigad
3. Palghar
4. Solapur
5. Kolhapur
6. Pune
7. Sangli
8. Nashik
9. Nagpur
10. Amravati
11. Wardha
12. Gondia
13. Akola
14. Chandrapur
15. Buldhana
16. Aurangabad
17. Nanded
18. Dhule
19. Jalgaon

The ESIC representative mentioned that they are in the process of finalizing agreements with local authorities to provide medical facilities to employees. Within a week or two, they will also commence a training program on how to register with ESIC and address any questions.

Regards, Rameshwar

Sh. Rameshwar Ji, thank you for the confirmation. I would like to know if ESIC or the State of Maharashtra has made adequate arrangements for medical services in all districts as of 01/08/2016. I understand this may be challenging information to obtain, but I would appreciate it if you could provide any insights on this matter.

Please find attached a gazette notification by the Government of India dated 28.07.2016 concerning the subject at hand. According to this notification, you are required to implement the provisions of the ESI Act in the 20 districts of Maharashtra listed in the notification, effective from 01.08.2016. The contribution rates will remain the same, i.e., 1.75% and 4.75%, until changed by a subsequent gazette notification.

Please note that the Tarapur Industrial and Manufacturers Association has challenged this notification in the Mumbai High Court. The matter is expected to be heard for an ad interim order, if any, on 30th Sept 2016.

Regards

Thanks for your understanding. I regret any inconvenience caused by the delay in my reply.

So far, ESIC does not have any foolproof medical facility-related arrangements. However, they have partnered with local doctors where employees can receive basic treatment. In the case of a major operation or illness, patients are referred to the nearest ESIC Hospital. These local doctors are not authorized to grant ESIC leave (sick leave). In the event of an accident, one can admit the patient to the nearest hospital, but it is essential to inform the relevant authority simultaneously. For more details, please contact the nearest ESIC representative.

Regards, Rameshwar

Sir, thank you for your reply. ESIC has recently relaxed its norms for the availability of medical services within a radius of 20 kilometers. Now, the question is whether there are medical arrangements within a range of 20 kilometers in all the districts of Maharashtra where ESIC has been recently extended.

Dear sir,

ESIC does not have its own facility, but they have tied up with private Doctors/Hospitals. They also circulate a list of the concerned Doctors/Hospitals. For more details, one can contact the Local Office Authority of ESIC.

Rameshwar
9371190064

Dear Mehata Sir,

I am Subodh and working at Sadumbare village, which is 60 km far from Pune and 15 km from Talegaon. Could you please guide me on whether this place is applicable for ESI or not?

Thank you.

Thank you for writing to me as mentioned above. I would like to inform you that the appropriate government issued a notification in July 2016, extending the operation of the said Act to all areas of certain districts of Maharashtra where the scheme was previously implemented, effective from 01/08/2016. If the area in which your unit is located falls within any of the districts mentioned in the notification and employs the minimum number of persons required by the Act, then in my opinion, your unit is covered or can be covered under the ESI Act, 1948, as well as the rules and regulations framed thereunder. You can verify this information from the nearest ESIC Office or from the Sub-Regional Office, ESIC, Pune.

Furthermore, some experts and seniors who contribute to HRcite, such as Sh. Korgaonkar ji and Kulkarni ji, are, I believe, based in Maharashtra. You may seek their opinion if desired. Both of these seniors have expressed their views in this thread as well.

Kind regards

I want to know how many workers are needed in the construction field for ESIC contribution. Is it required that more than 10 workers are needed for ESIC deduction.

Dear Rameshwar Ji,

I have a micro SSI unit. My question is regarding the applicability of ESIC. How many employees are required for applying ESIC and PF?

Thank you.

Update on ESIC Implementation in Tarapur

As per the post regarding ESIC in Tarapur, you mentioned that the Tarapur Industrial & Manufacturer Association (TIMA) has challenged the implementation in the High Court. This challenge is due to the lack of facilities in the Palghar district, including no panel hospitals or dispensaries. Could you please provide an update on the outcome from the High Court? Has TIMA lost the case, or is it still pending?

Many contractors are experiencing numerous difficulties as there are no facilities in Tarapur/Palghar/Dahanu - MIDC, and there are no ESIC registered doctors or dispensaries available. There have been reports that registered doctors are sending patients to Mumbai instead of providing treatment locally. This situation resembles a case of "Tuglaki farman" from the Labor Ministry. We hope that ESIC will be implemented soon with hospitals that are panelled with ESIC to cater to the needs of employees who require facilities in Palghar and other districts lacking adequate resources.

Whether the ESIC is applicable to Ratnagiri District of Maharashtra or is it exempted?

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Pune district under Phaltan is applicable for ESI coverage.