Labour ministry moves PMO on tweaking ESIC

The labour ministry has approached the Prime Minister’s Office after finance ministry blocked a proposal to provide an option to ESIC subscribers to opt for health insurance products available in the market.

The finance ministry, which had itself mooted this proposal earlier, has now opined that the prevailing practice is good enough wherein ESIC (Employee’s State Insura-nce Corporation) subscribers are given its own health insurance cover.

“The labour ministry has approached the PMO to resolve the issue following the finance ministry’s turn-around on its own proposal to provide option of other health insurance products to the ESIC subscribers,” a source said.

“All the required clearance for this proposal was received from various ministries including the law ministry. The finance ministry had also made a case for it earlier after finance minister Arun Jaitley’s announcement in this regard in last year’s budget speech.”

Mr Jaitley had said at that time, “With respect to ESI, the employee should have the option of choosing either ESI or a health insurance product, recognised by the IRDA.”

“But the labour ministry could not send it for the Cabinet approval as the finance ministry has now written adverse comments on it saying the prevailing practice is good enough,” the source said, while adding that the labour ministry had to therefore seek PMO’s inte-rvention before approaching the Cabinet.