Govt finally terminates health insurance policy

Jammu, December 28

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Putting all speculations to end, the state government on Friday finally issued a notification for revocation of the controversial J&K Group Mediclaim Insurance Policy for all state government employees with effect from December 31 midnight.

An order of the state finance department said the sanction was accorded to the revocation or withdrawal of the government order issued on September 20 regarding the implementation of the insurance policy for all state government employees, including employees of public sector undertakings (PSUs), autonomous bodies, universities and pensioners with effect from December 31 midnight.

Accordingly, all drawing and disbursing officers (DDOs) have been directed not to deduct the premium from the salaries of employees henceforth.

On September 20, the state finance department had notified the implementation of the policy for about 4.5 lakh government employees, including 1.6 lakh pensioners and their dependent family members. The policy had been tied up with M/s Reliance General Insurance Company Ltd. The policy promised health insurance coverage up to Rs 6 lakh per employee or pensioner per annum along with their five dependent family members on a floater basis. The annual premium for the insurance cover was to be deducted in four quarterly instalments.

However, Governor Satya Pal Malik on October 24 had announced the cancellation of the policy after the detection of multiple frauds and ordered a high-level probe into the matter. He had disclosed that the government officers did not call tenders for the policy and a front company had been floated by some officers to call the tenders. “The tender were opened on a holiday to suit a company. A fraud was established in the implementation of the scheme that led to cancellation of the agreement with the insurance company,” Malik had said. — TNS