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State Illness Assistance Fund, Madhya Pradesh
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Subject Area="Access to service and coverage." Objective="Financial support to BPL families for major surgical procedures in premier hospitals in or outside the state."
Details for Reform Option "State Illness Assistance Fund, Madhya Pradesh"

Background: Government of Madhya Pradesh created such a scheme for the benefit of people living below the poverty line. This scheme provides assistance to poor families in case of 13 major diseases, listed by the government, that require surgery and expensive treatment. Action:The State Illness Assistance Fund (SIAF) has been created with a grant of INR 10 crores (100 million) (€ 1,723,760). The eligibility criteria for applying for this fund stipulate the person should be a domicile of MP and belong to a BPL family; assistance can be sought for any of the 13 listed diseases. An application form can be obtained from the district collector’s office, the district chief medical and health officer’s office or from the office of the district civil surgeon or the district hospital. The application has to be submitted to the District Collector and addressed to Director, Public Health and Family Welfare. Along with the form, other attachments that are needed are (1) BPL and residence certificates (will be given by the collector or the sub-divisional magistrate). (2) Certification of the disease, the estimate for the surgery (to be given by Civil Surgeon). The application is then forwarded to the Secretary, SIAF. The application is scrutinised by an SIAF sub-committee before the management group approves it. SIAF sub-committee constituted under chairmanship of the Minister for Health and Family Welfare. Assistance is provided for: (i) cancer surgery, radiotherapy and chemotherapy (ii) Thoracic surgery (iii) Renal surgery and renal transplant (iv) Total hip joint replacement (v) Total knee joint replacement (vi) Head injury requiring surgical intervention (vii) Organ transplant (viii) Comatose condition (ix) Spinal surgery (x) Retinal detachment (xi) Post puerperal complications (xii) Cardiac surgery (xiii) Injuries caused by bomb blast, agricultural machines, industrial accidents and natural calamities. The above-mentioned surgical procedures can be performed in 16 recognised institutions or hospitals (see Reference). Initially, a state level committee was formed and registered under MP Societies Act 1973. The committee comprises 10 members, including Chairman and member secretary. The State Minister for Health and Family Welfare is the Chairman. The other members include Director, Public Health and Family Welfare, MP, Principal Secretary, Health and Family Welfare, Principal Secretary, Finance, Director of Medical Services, Director of Medical Education, two members of legislative assembly and two reputed medical experts. The committee is responsible for generating funds for the scheme, assessing the requests and monitoring programme performance. In January 2006, district level committees were formed for prompt service to needy patients far from the state capital. The minister responsible for a particular district is the chairman of the committee. The other members include the District Collector, Civil Surgeon, Chief Medical Health Officer and three persons nominated by the chairman. The maximum amount that can be approved by a district committee is INR 75,000.Assistance ranges between minimum INR 25,000 and maximum INR 150,000. It is provided directly to the government-approved hospital where the patient has been referred to or undergoes treatment. Results: Between 1997and 2004, the SIAF Secretary received 5,150 applications; of these only 1, 341 seriously ill patients have been provided assistance for surgical and medical treatment in government recognised institutions. Most of the recipients are from districts of Rajgarh, Mandsaur and Jabalpur. After the formation of district committees, assistance was made available to additional 793 patients (from January 2005 to May 2006).

Cost The Government of Madhya Pradesh (GoMP) has so far spent more than INR 18 crores (180 million) on 3000 patients.
Place Madhya Pradesh.
Time Frame Few months.

Life Saving: Treatment, unaffordable by the patient, saves life.


Monitoring: Lack of information after the patient undergoes treatment. Time consuming: Bureaucratic procedures can sometimes cause delay in treatment. Rightful recipient: Effective scrutiny so that only the genuinely poor get the assistance.


Government order.

Who needs to be consulted

GoMP. Directorate of Health Services. SIAF committee members at state and district level.Beneficiaries.



Depends on the establishment’s will to save the life of a person who cannot afford a certain category of treatment.

Chances of Replication

There is demand for such assistance and the government is in favour of extending it. A similar scheme is in place in Jharkhand, where BPL patients have drawn above INR 1 lakh (100,000) for expensive treatments as in the case of cancer and cardiac surgery.


Political consideration may also mar the scheme and reduce it to a conduit for granting favours.


Submitted By

Dr. Nandini Roy, Research Consultant, National Institute of Medical Statistics, June 2006.

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