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CS Professional · Labour Laws and Practice · Social Security Legislations

The ESI Corporation wishes to enter an agreement with a private hospital in Pune under which it contributes towards the cost of medical treatment of Insured Persons, including the cost of building and equipment. Is such expenditure from the ESI Fund permitted?

Yes. The Fund may be expended on contributions to a State Government, local authority, private body or individual towards the cost of medical treatment and attendance to Insured Persons, including buildings and equipment, in accordance with an agreement entered into by the Corporation.

  1. ANo, the Fund can only be used for hospitals set up by the Corporation itself
  2. BNo, private bodies cannot receive any money from the Fund
  3. CYes, but only if the private hospital is run by a State Government
  4. DYes, contributions may be paid to a State Government, local authority, private body or individual towards treatment cost, including building and equipment, as per an agreementCorrect

Explanation

Section 26(e) allows payment of contributions to any State Government, local authority, private body or individual towards the cost of medical treatment and attendance, including buildings and equipment, under an agreement entered into by the Corporation. Limiting it to its own hospitals or to State Governments is wrong.

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