Special Correspondent The All India Anna Dravida Munnetra Kazhagam has charged that the State Government is trying to impose a new health insurance scheme on its employees from June this year.

The scheme, to be implemented in coordination with Star Health and Allied Insurance Company, will also cover the employees of public sector undertakings, statutory corporations, local bodies and universities.

In a statement here on Monday, party general secretary Jayalalithaa said under the scheme Rs 25 would be deducted every month from the employees’ salary to cover their medical expenses up to Rs 2 lakh in a block of four years.

The Government decided to remit an annual premium of Rs 75 crore to the insurance company immediately. The Director of Treasuries would be in charge of implementing the scheme. A government order had been issued.

Ms.Jayalalithaa questioned why the Government preferred a private health insurance company when nationalised insurance companies were offering such services. Again where was the need for paying the premium urgently to the company even before it released the list of hospitals where employees could avail themselves of the medical facilities. Moreover, the company did not have branches in 12 districts in the State.

The AIADMK leader also said as per the GO several conditions had been laid down which would create problems for the staff in availing the benefits of the scheme. The GO had provided ways for the company to have its representatives in committees being set up for enquiring complaints preferred by employees but the same facility had not been provided to the employees.

The Government should consult employees unions and modify the scheme so that the procedures were simplified, the statement added.