Governor, Satya Pal Malik has approved foreclosure of the contract with M/S Reliance General Insurance Company (RGIC) for implementing the Group Mediclaim Health Insurance Policy for the employees and pensioners in the State.
According to the Government spokesman, ever since sanction was accorded to the implementation of the insurance scheme by the Government, doubts were expressed in various quarters, including a cross-section of the society and the media, about the credibility of the process.
“This has cast a shadow on the entire process followed in the finalization of the scheme,” he said adding that 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 said that as the Governor’s Administration is 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 and added that therefore, a decision has been taken to foreclose the contract.