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ESIC defers decision on higher allocation

Ambarish Mukherjee

New Delhi , April 19

THE governing board of the Employees' State Insurance Corporation (ESIC) on Tuesday deferred a decision on raising the allocation for workmen and their family members from Rs 750 per insured person per year to Rs 900.

The move would have increased ESIC's liability to the States by around Rs 105 crore, officials said. The funding is routed through the State Governments.

The proposal has now been referred to a subcommittee set up by the governing board.

The subcommittee has been asked to submit its report in a month.

The ESIC has approximately 80 lakh insured workers who get medical insurance for treatment in the ESI hospitals spread across the country.

It also covers the approximately 3 crore family members of these workers taking the total number to 3.8 crore individuals.

Following the increase in medical costs, it had been proposed to raise the amount earmarked for each person.

Even if a decision is delayed, any increase would be effective for the full financial year 2005-06.

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