J-K guv orders foreclosure of insurance contract with Reliance group for employees

Jammu and Kashmir Governor Satya Pal Malik Saturday ordered foreclosure of the contract with Reliance General Insurance for implementing the group mediclaim health insurance for state employees and asked the Anti-Corruption Bureau (ACB) to probe the matter.

The decision comes after the mandatory Reliance insurance for the state government employees and pensioners had sparked a row.

"The governor has approved foreclosure of the contract with M/s Reliance General Insurance Company (RGIC) for implementing group mediclaim health insurance policy for the employees and pensioners in the state," a Raj Bhavan spokesman said.

He said ever since sanction was accorded to the implementation of the insurance scheme by the government, doubts were expressed by various quarters, including a cross-section of the society and the media, about the credibility of the process.

"This has cast shadow on the entire process followed in the finalisation of the scheme," the spokesman said.

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 added.

The spokesman said that as the Governor's Administration was mandated to provide good, transparent, fair and employee-friendly governance, it was felt that it would be difficult to proceed ahead with the 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 the 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.

Therefore, a decision has been taken to foreclose the contract, the spokesman added.

He said the matter has been referred to the newly-established Anti-Corruption Bureau for examining the entire process to see whether it was conducted in a transparent and fair manner.

"Keeping in view the importance of the matter, the government has directed the director, Anti-Corruption Bureau, to personally look into the matter rather than entrusting it to someone else," the spokesman said.

He said action would be taken on the findings of the ACB.

Malik had on Thursday said he cancelled the tie-up with Reliance General Insurance for providing the group mediclaim health insurance policy to employees as there was "some bungling" in it.

The Jammu and Kashmir government had on 30 September rolled out the group mediclaim health insurance policy for its employees, pensioners and accredited journalists of the state.

It had tied up with Reliance General Insurance for the mediclaim policy, which was made mandatory for the employees and pensioners.