Muslim Society Blames ESI For Reimbursement Delays

Hyderabad: Uneven enforcement under the Employees’ State Insurance (ESI) scheme, where institutions face strict penalties for delayed contributions while employees wait months for medical reimbursements, amounts to a violation of the constitutional right to equality, the All India Muslim Educational Society has said.

Raising the issue, M. S. Farooq, advocate and general secretary of the All India Muslim Educational Society (AIMES), Telangana and Andhra Pradesh units, said prolonged and unexplained delays in settling ESI medical reimbursement claims were arbitrary and legally unsustainable.

Farooq said ESI authorities strictly enforce timelines and penalties on institutions for monthly contributions but fail to follow any time-bound procedure while reimbursing genuine medical claims. “This unequal treatment offends the constitutional guarantee of equality before law and fair administrative action under Article 14,” he said.

According to AIMES, several reimbursement claims submitted by its members have remained pending for over a year, causing severe financial stress to employees, particularly those from lower- and middle-income groups.

Farooq said many employees were forced to borrow money or exhaust savings during medical emergencies, defeating the core purpose of the ESI scheme, which is meant to provide timely social and medical security.

He added that the absence of a mandatory timeline for disposal of claims, along with poor communication on claim status, amounted to administrative arbitrariness. “Beneficiaries who have complied with all statutory requirements have a legitimate expectation that their claims will be settled within a reasonable time,” he said.

AIMES demanded that ESI authorities ensure regular communication on application status and strengthen grievance redressal mechanisms to prevent repeated visits to ESI offices.