Provision of medical treatment by [State] Government :
Section – 58. (1) The[State] Government shall provide for insured persons and (where such benefit is extended to their families) their families in the[State] reasonable medical, surgical and obstetric treatment:
Provided that the [State] Government may, with the approval of the Corporation, arrange for medical treatment at clinics of medical practitioners on such scale and subject to such terms and conditions as may be agreed upon.
(2) Where the incidence of sickness benefit payment to insured persons in any [State] is found to exceed the all India average, the amount of such excess shall be shared between the Corporation and the [State] Government in such proportion as may be fixed by agreement between them:
Provided that the Corporation may in any case waive the recovery of the whole or any part of the share which is to be borne by the [State] Government.
(3) The corporation may enter into an agreement with a [State] Government in regard to the nature and scale of the medical treatment that should be provided to insured persons and (where such medical benefit is extended to the families) their families (including provision of buildings, equipment, medicines, and staff) and for the sharing of the cost thereof and of any excess in the incidence of sickness benefit to insured persons between the Corporation and the [State] Government.
(4) In default of agreement between the Corporation and any [State] Government as aforesaid the nature and extent of the medical treatment to be provided by the [State] Government and the proportion in which the cost thereof and of the excess in the incidence of sickness benefit shall be shared between the Corporation and that Government, shall be determined by an arbitrator (who shall be or shall have been a Judge of the [High Court [of a State]] appointed by the Chief Justice of India (and the award of the arbitrator) shall be binding on the Corporation and the [State] Government.
[(5) The State Government may, in addition to the Corporation under this Act, with the previous approval of the Central Government, establish such organisations (by whatever name called) to provide for certain benefits to employees in case of sickness, maternity and employment injury;
Provided that any reference to the State Government in the Act shall also include reference to the organisation as and when such organisation is established by the State Government.
(6) The organisation referred to in sub-section (5) shall have such structure and discharge functions, exercise powers and undertake such activities as may be prescribed.