J&K gov cancels ‘fraudulent’ Reliance insurance scheme

Srinagar: Jammu and Kashmir governor Satya Pal Malik has annulled the group medical insurance policy with Anil Ambani’s Reliance General Insurance Company Limited (RGICL) for state government employees and pensioners and accredited journalists after finding it “full of frauds.”

He said in a television interview on Wednesday night, “I’ve ordered termination of the Jammu and Kashmir Group Medical Insurance Policy of Government employees after going into roots of the case, which turned out to be full of frauds. Formal orders to this effect will be issued in the next two days.”

On September 20, the governor’s administration had formally rolled out the scheme and said that it is mandatory for government employees including employees of PSUs, autonomous bodies and universities and optional for pensioners, ad-hoc, contractual, work charged and contingent paid workers, some other non-permanent officials and accredited journalists. The scheme came into effect from October 1 for a period of one year and, as per the official announcement, was extendable annually for three years “based on satisfactory performance of the insurer”.

However, the governor administration’s picking up RGICL for the scheme had raised many eyebrows in the State and beyond. The Congress party was in the forefront of censuring the move and had termed it as yet another testimony of ‘Modi-Reliance nexus’. The Congress and some other opposition parties had sought to link the choice of the State which is currently under Governor’s rule with ongoing Rafale controversy wherein the Modi government has been accused of favouring Anil Ambani’s Reliance Defence Limited over Hindustan Aeronautics Limited (HAL).

However, the state government had rejected the criticism as unwarranted and said that all public sector undertakings as well as top private insurance companies were contacted to participate in the bidding process “done in a competitive, clean and transparent manner in line with all financial rules and regulations as well as CVC guidelines”

It had also said that “speculative accusations” being levelled were aimed at undermining “a highly beneficial healthcare initiative” and that “unfortunately and ironically, disingenuous information is being dished out about this immensely advantageous scheme for the employees across the board”. It had also strongly denied the RGICL was picked up for political reasons. But now governor Mr. Malik has said that the policy was “full of frauds” has been established and officers involved in it by a probe ordered by him. He said that the entire process was carried out in hush hush manner and even the tenders were opened on holiday to suit the company.

He further said that he called the officers involved and when the fraud was established, he spoke to the chief secretary and directed for immediately scrapping the contract.