Kerala Govt to Launch Health Insurance Scheme for Employees

The Kerala State Government is going to launch a health insurance scheme to benefit its 9.50 lakh employees and The decision was on the basis of the recommendations of the 10th Pay Commission.

According to an official release, the present medical reimbursement will continue until the new scheme is implemented.

The employees will have to remit Rs 300 every month towards the insurance scheme. The Rs 300 now being given monthly as a medical allowance to pensioners will be stopped and the amount deposited as an insurance premium.

The release added that once the health insurance scheme becomes operational, the interest-free treatment loan scheme will also cease.

The state government is spending about Rs 230 crore annually towards medical reimbursement scheme, medical allowance for pensioners and interest-free treatment loans and is hoping that when the insurance scheme comes into force, this expenditure can be reduced.

As per the release, the cabinet also decided that while inviting applications from IRDA approved Insurance companies for the scheme, four public sector companies would be given preference.

There are about 4.50 lakh government servants and five lakh pensioners in the state. The government also decided to create 120 new posts in the Kerala Public Service Commission.

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