J&K Governor to terminate health insurance contract

first_imgJammu and Kashmir Governor Satya Pal Malik has said that his administration will terminate the contract granted to Reliance General Health Insurance Company Ltd., a month after the government rolled out a Group Mediclaim Health Insurance Scheme for employees, pensioners and accredited journalists of the State.Bids not displayed “I studied it (the case) 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. I have almost terminated the contract after an investigation. It will take couple of days (for the official cancellation order),” Mr. Malik said in an interview to a Delhi-based news channel.He claimed that the contract signed earlier “was full of frauds”.Annual premium The Governor’s administration had rolled out the insurance scheme on September 20 this year. It had announced that the government had tied up with Reliance General Health Insurance Company Ltd. on an annual premium of ₹8,777 and ₹22, 229 for employees and pensioners respectively.The government had said Reliance General Insurance, headed by Anil Ambani, won the contract to provide health insurance cover to Jammu and Kashmir staff after a “rigorous and transparent competitive tender process”.Many employees have already paid their first instalment for the policy, cumulatively running into around ₹25,000 crore.Kickback chargeThe Governor hinted that “during tendering the amount was changed to suit the company and was opened on a holiday”, also suggesting that top officials took kickbacks in the State’s Finance Department.The Governor’s regime on Wednesday pushed for the establishment of an Anti-Corruption Bureau which will have powers to arrest the corrupt officers and attach their property.last_img

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