October 2018 News

Governor Cancels Group Mediclaim Policy Contract With Reliance Citing Fraud

25 October 2018

Srinagar: Jammu and Kashmir Governor Satya Pal Malik has cancelled the group mediclaim policy for state government employees and pensioners with Anil Ambani's Reliance General Insurance Limited. In an interview with Zee News channel on Wednesday, Malik said he has ordered the cancellation of the scheme which 'turned out to be full of frauds' after an investigation. Malik said the official cancellation order will be out in the next few days. 'I studied it myself. The issue is that the government had not issued any tenders,' Malik said, according to Greater Kashmir. '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.' A month after Malik was sworn in as Jammu and Kashmir's governor in August, he had approved an order to implement the Chief Minister's Group Mediclaim Insurance Policy from October 1. The policy had been tied up with Reliance General Health Insurance Company Limited on an annual premium of Rs 8,777 and Rs 22,229 (for employees and pensioners respectively). Around 3.5 lakh government employees were to benefit from the policy. 'We are happy about the decision taken by the governor,' The Print quoted Abdul Qayoom Wani, president of Employees' Joint Action Committee, as saying. 'It was not an open tender. All the stakeholders have been highly suspicious about how suddenly it was allotted to RGIC.' The state has been under Governor's Rule since June 20 after the Bharatiya Janata Party pulled out of the ruling alliance led by former Chief Minister Mehbooba Mufti of the Peoples Democratic Party. Earlier this month, Congress President Rahul Gandhi had criticised the Narendra Modi government for buying health insurance for the employees of the Jammu and Kashmir government from Reliance General Insurance. In response, the insurance firm said it has won the contract after a 'rigorous and transparent competitive tender process'.