KOLLAM: Insurance claims running into crores remain in limbo as delayed promotions and unfilled vacancies at the top officer-level at Kerala State Insurance Department have crippled the functioning of the department.
The administrative deadlock has left lakhs of beneficiaries, including Kudumbashree members, pensioners, and government employees, without their rightful dues under various insurance schemes.
The worst hit are members of the Oruma scheme, which provides insurance coverage to Kudumbashree workers. An official told TNIE that around 14 lakh Kudumbashree members are yet to receive their claims, leaving the women’s self-help group — considered the backbone of Kerala’s poverty eradication drive — in a precarious position.
More than 500 claims are also pending under the Jeevan Raksha Scheme, which provides accident insurance of Rs 15 lakh in case of death and Rs 5 lakh for injuries to employees of government, public institutions, semi-government bodies, and cooperative societies.
Similarly, nearly 15,000 employees who retired between March and May this year are yet to receive settlements under the State Life Insurance (SLI) and Group Insurance Scheme (GIS). Over 10,000 newly appointed employees have also been denied their SLI and GIS coverage so far. Claims worth lakhs under the general insurance schemes , including fire, motor, and miscellaneous categories, are also pending.
"I retired in May after serving in the health department for two decades. My insurance claim is still not cleared. I have health issues and cannot chase this every day. I live on a modest pension, and this delay has caused real hardship for my family. I hope the government would intervene soon," said a former government employee.
According to sources, 14 top-level officer posts in the department remain vacant, leading to the massive backlog. "The vacancies were supposed to be filled by June. By July, the paperwork for postings had even reached the director’s office. But the process stalled after a request for a home posting triggered union objections. Before the issue was resolved, the director was transferred, and the new director has not yet taken charge," said a State Life Insurance source.
Officials in the insurance department said steps are being taken to clear pending claims. Meanwhile, a senior finance department official maintained that while the posting issue would be resolved, it should not affect the day-to-day functioning of the insurance wing. "We will streamline the postings and promotions, but the backlogs should have been managed regardless. The department cannot allow administrative delays to affect claim settlements," said the official.