NEW DELHI: Governor Satya Pal Malik on Saturday approved foreclosure of the contract with the Anil Ambani group’s Reliance General Insurance Company (RGIC) for the Group Mediclaim Health Insurance Policy meant for government employees and pensioners in Jammu & Kashmir.
According to the government spokesman, ever since sanction was accorded to the implementation of the insurance scheme, doubts were expressed in various quarters about the credibility of the process. “This cast a shadow on the entire process followed in the finalisation of the scheme,” the spokesman said, adding that allegations continue to appear in the media over the selection process and the intermediary (broker) through which the company was chosen.
The spokesman said that the matter has now been referred to the newly established Anti-Corruption Bureau for examining the entire process to see whether it was conducted in a transparent and fair manner.
“Keeping in view the importance of the matter, the Government has directed the Director, Anti-Corruption Bureau, to personally look into the matter rather than entrusting it to someone else,” the spokesman said, adding that action would be taken on the findings of the Anti-Corruption Bureau.
“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,” the spokesman said and added that a decision has been taken to foreclose the contract.