Jammu-Kashmir Governor Satyapal Singh scraps health cover deal with Reliance Insurance

SRINAGAR: Jammu and Kashmir Governor Satya Pal Malik has cancelled the Group Mediclaim Health Insurance Scheme for employees in the state, the contract for which was awarded to Anil Ambani’s Reliance General Insurance.

Malik, while talking to a news channel, said that the contract has been cancelled as it was ‘full of fraud’ and its implementation was erroneous. He even informed that the tenders were opened ‘secretly on a holiday to suit a particular company.’

The governor’s office had rolled out the scheme last month, which was immediately criticised by Congress leader Rahul Gandhi and others.


Former Jammu and Kashmir chief minister and National Conference leader Omar Abdullah said that a proper investigation should follow the cancellation of the contract and the guilty must be exposed.

“The Hon J&K governor now needs to order an inquiry headed by the chief secretary to establish who was behind the allotment of the insurance contract. The sums of money involved are too big for this to have been a straight forward mistake,” Abdullah tweeted.

Last month, the J&K government had issued the order stating that the policy has been tied with M/s Reliance General Health Insurance Company Ltd on an annual premium of Rs 8,777 and Rs 22,229 (for employees and pensioners respectively). After initial criticism over awarding of contract, Reliance General Insurance also issued a statement claiming that the company won the contract after a “rigorous and transparent competitive tender process”.

The scheme was mandatory for government employees, autonomous bodies and universities and optional for pensioners and accredited journalists and other category of employees. The scheme was challenged in the J&K High Court as well.

The employees union in the state had also criticised the scheme saying that the policy was being imposed on employees.