|JK Govt puts Reliance on notice for termination of contract, response awaited|
|Employees' mediclaim policy|
|Early Times Report|
Jammu, Dec 4: Amid suspense over the status of infamous government employees' mediclaim insurance policy, the state government has served notice to the company for termination of the contract and has been waiting for response from the company.
Sources in the Finance department informed Early Times that the state Governor led state government served a notice to the Reliance Company, for termination of contract of the mediclaim insurance policy for the state government employees and pensioners.
"The state government has been waiting for the response of the Reliance company and after getting the response, further course of action will be decided by the government", sources said, adding that there were least possibilities that the contract would be terminated as the government had signed the Memorandum of Understanding with the Company for mediclaim insurance cover, after lowest bid proposed by the Reliance company.
Sources further said that due to the MOU signed with the company, government has been caught in a catch-22 situation, due to which, government clarified that the policy would continue till December 31. "The premium of first quarter was already deducted by the company from the accounts of government employees as well as pensioners after which the Governor made an announcement alleging a big fraud in the insurance policy", sources said, adding that following the announcement by the Governor, a peculiar situation erupted for the government.
"There is each possibility that the Mediclaim policy with the Reliance company will continue as the company would easily knock the door of the court as they had managed the contract for three years, after securing the lowest bid", sources said, adding that the officials of Finance as well as other department, were satisfied with the procedure adopted. Sources further said that the government has almost decided not to complicate the matter further and continue the contract with the company as there were reports of political pressure to continue the contract.