J&K Governor To Cancel Reliance General Insurance For Govt Employees Over "Irregularities Detected"

Earlier this month, the Group Mediclaim Health Insurance Scheme was rolled out by the government administration of Jammu and Kashmir. It was then made mandatory for the government employees to buy health insurance from Reliance General Health Insurance Company Limited. However, now the J&K governor Satya Pal Malik said that the contract has been “almost terminated” and the official order will be sent soon.

Contract to private company to be cancelled

In an interview with a Delhi-based TV channel, Malik said, “I studied it myself. The issue is that the government had not issued any tenders. A private company had asked for tenders on behalf of another company. Those bids were not displayed anywhere on our (government’s) website. The tenders were changed to suit a particular company,” as reported by The Statesman.

He further added that he has discussed the matter with the chief secretary and told him that “such things can’t happen in my presence”, after which the decision to cancel it was taken.

The Logical Indian has sent out a mail and the article will be updated when the response from Reliance General Insurance is obtained.

Health insurance for 4 lakh employees

“The policy has been tied with M/s Reliance General Health Insurance Company Ltd on annual premium of Rs 8,777 and Rs 22,229 (for employees and pensioners respectively),” said the order issued by the Jammu and Kashmir government. The order further added that it was mandatory for all state government employees(Gazetted and Non-Gazetted) including Universities, Commissions, Autonomous Bodies and PSUs. However, for pensioners, accredited journalists and others, this policy was to be optional.

This health insurance was to cover 4,00,000 government employees.

Around that time there were objections raised on the tender given to a private company. It was alleged that the unlike the usual practice of posting an invitation for tender on the government website, it was carried by few newspapers.

Members of the Employees Joint Action Committee (EJAC) had also alleged that the premium amount was fixed at Rs 8,777 annually for all employees across the posts they held, which was deemed unfair.

Also Read: Mandatory Health Insurance For J&K Govt Employees To Be Provided By Reliance Insurance