JK govt cancels Mediclaim Insurance Scheme after allegations of ‘favouring a private company’

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Srinagar: A month after rolling out the Group Mediclaim Health Insurance Scheme for employees, pensioners and accredited journalists, Jammu and Kashmir Governor Satya Pal Malik has said that the contract to a private company has been ‘almost terminated’.

In an interview to a New Delhi-based TV channel, Malik said, “It will take couple of days (for the official cancellation order).”

“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,” Malik said in the interview.

“It was full of frauds. I discussed the issue with the chief secretary and made it clear that such things can’t happen in my presence. So we decided to cancel it”.

The Governor’s administration had rolled out the scheme with much fanfare on September 20 this year.

MLA Kulgam Mohammad Yousuf Tarigami had alleged that the insurance scheme has been rolled out to benefit a particular corporate company. 

“What criterion was followed to select the particular company is not known to anybody which has raised serious doubts over the scheme, for which the employees have to shell out Rs 8777 as annual premium,” he had said in a statement.

Earlier this month, Reliance General Insurance had said that it has won the contract to provide health insurance cover to Jammu and Kashmir government staff after a “rigorous and transparent competitive tender process.”

The company’s statement came after Congress president Rahul Gandhi alleged that the general insurance company, a wholly-owned subsidiary of Anil Ambani’s Reliance Capital, got the health insurance mandate from the J&K government due to his proximity to Prime Minister Narendra Modi.

In a tweet, Gandhi had said:

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