Cancellation of insurance deal: Consider recovery of Rs 44 Cr from RGICL, ACB alert to J&K Govt

Srinagar: The Jammu & Kashmir Anti- Corruption Bureau (J&K ACB) has advised the Government of Jammu & Kashmir to consider recovery of Rs 44 crore from the Reliance General Insurance Company Limited (RGICL) after cancellation of the contract executed with it in 2018 for medical insurance of government employees and pensioners.
In its alert note sent to J&K government the ACB has advised it to consider recovery of the balance amount pending with RGICL.
“It is advised through this alert note the government of Jammu & Kashmir may consider recovery of balance amount of Rs 443992618 pending with Reliance General Insurance Company Ltd. as per the agreement clause of the contract,” reads alert note sent by director ACB, Anand Jain to Commissioner Secretary, General Administration Department on December 30,2020.
The note states that as per the agreement, the company shall refund the excess premium paid to it after expiry of the policy period.
“In case of excess of premium paid to the Insurance Company, the same shall be refunded by the Insurance Company after the expiry of the policy period,” reads clause 17 of the agreement signed between the J&K government, RGICL and Trinity Reinsurance Brokers Limited.
The tripartite agreement for implementation of Group Mediclaim Insurance Policy was signed on October 15, 2018. But before signing of the agreement, Rs 61.43 crore were released in favour of RGIC as first installment of premium on Sep 28,2018.
According to the ACB’s alert note dated December 30, 2020, the RGIC submitted that Rs 17.03 crore were reimbursed to employees and pensioners.
In its letter dated February 8, 2022, the ACB has communicated to the J&K Government that the report from Reliance General Insurance Company Limited regarding reimbursement of claims and settlement of claims is awaited.
“The figure of Rs 17 crore as reimbursement of claims was interim figure obtained from Reliance General Insurance,” the letter states