J-K Governor Satya Pal Malik orders foreclosure of insurance contract with Reliance group for employees

The decision follows the Governor's decision to scrap the contract with RGIC.

Published: 27th October 2018 04:01 PM  |   Last Updated: 27th October 2018 09:04 PM   |  A+A-

Satya Pal Malik (Photo: ANI)

Express News Service

SRINAGAR: Jammu and Kashmir Governor, Satya Pal Malik Saturday ordered foreclosure of the contract with Anil Ambani's Reliance General Insurance Company (RGIC) for implementing the Group Mediclaim Health Insurance Policy for the state government employees and pensioners and directed Anti Corruption Bureau (ACB) to conduct thorough probe and fix the responsibility.

The decision follows the Governor's decision to scrap the contract with RGIC. He had cancelled the contract saying it was 'full of fraud' and its implementation was erroneous. "The tenders were opened secretly on a holiday to suit a particular company," he had said.

The State government had launched the group mediclaim health insurance policy for its 3.5 lakh employees, pensioners and accredited journalists from October 1 this year.The health mediclaim was made mandatory for its employees and pensioners by the State government.An official spokesman said today that ever since sanction was accorded to implementation of the insurance scheme by the government, doubts were expressed in various quarters, including a cross-section of society and media, about credibility of the process.

"This has cast a shadow on the entire process followed in the finalization of the scheme," he said adding the allegations flying around have not stopped but are pouring in the media about the selection of the Insurance Company, more so the selection of the intermediary (Broker). He said as Governor's administration is mandated to provide good, transparent, fair and employee-friendly governance, it was felt that it would be difficult to proceed ahead with implementation of the scheme.

"Taking a well-informed view on all aspects and the concerns about the process involved, the government is of the opinion that in interest of the government and for enhanced transparency, it would be judicious not to proceed further in the contract with the insurance firm," he said adding therefore, a decision has been taken to foreclose the contract.The spokesman said the matter has been handed to Anti-Corruption Bureau (ACB) for examining the entire process to ascertain whether it was conducted in a transparent and fair manner.

The government has ordered Director, ACB to personally look into the matter rather than entrusting it to someone else. "Action will be taken on the findings of the ACB," added the spokesman.Sources said the probe has been ordered after reports that State's Finance Department had made an advance payment of Rs 60 crore to RGIC without approval of the Governor or Chief Secretary.After cancellation of contract with RGIC, the government employees have demanded immediate return of their premium with interest.The annual premium for employees was Rs 22,229 and for pensioners was Rs 8777.


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