The ESIC provides five main benefits to the insured population. There are many other additional facilities provided. The Medical Benefit is provided mainly through the State Governments. Adequate funds are provided to the State Governments in advance every quarter.
As the ESI Corporation collects the contribution from the workforce and the employers, the beneficiaries make only on the ESI Corporation answerable for the proper administration of Medical Benefits. But, the ESIC does not, practically, have any monitoring mechanism to oversee the exact manner in which the funds released by it are spent by the State Governments.
There are many dispensaries where even the essential medicines are not available, when the procedure demands that the medicines must be indented for in advance to meet the requirements of subsequent quarter and the funds are released in advance.
The ESI Corporation must, therefore, arrange to have a Monitoring Committee of four officers, two from the State Government concerned and two from the ESIC, one of them being the Deputy Director (Finance) of the concerned Regional Office. That system will ensure that the funds released are utilized only as per the ESI norms. Releasing the advance must be with reference to the clearance given by this Monitoring Committee.