Kerala - Thiruvananthapuram   

Move to blacklist firm

THIRUVANANTHAPURAM: The Government is planning to move the Insurance Regulatory Development Authority (IRDA) seeking legal action against a private insurance company that was engaged by the previous UDF Government for implementing the health insurance scheme for BPL families.

Official sources told TheHindu that the Government would ask the IRDA to blacklist the company for failing to honour a commitment to implement the insurance scheme, taking money from the Government as premium before specifically evolving a scheme and signing a pact and also not repaying the money within the stipulated time. The previous Government had given Rs.6.37 crore collected from various local self-Government institutions, individuals and other agencies as premium to the company for implementing the scheme.

The scheme failed to take off, as it was drawn up in violation of the norms laid down by the Union Government for providing subsidy under the Universal Health Insurance Scheme (UHIS). After assuming office, the LDF Government asked the company to repay the money to the respective civic bodies as the scheme did not materialise. The company is yet to repay Rs.72,70,288 collected by 188 LSGIs, sources said.

As a first step in this regard, Kudumbasree executive director Sarada Muralidharan has written a letter to the regional head of the company on August 13 demanding to repay the outstanding amount and also 12 per cent interest for the Rs. 6.37 crore which the company had taken as premium. “The amount of Rs.63709977/- was kept in your account since February 2006. If you are unable to implement the scheme as offered in your letter dated 14-08-2005, you should not have accepted the premium and even if accepted it should have been refunded immediately,” the letter said.

The money was refunded only after five months in instalments after repeated requests. The executive director has demanded that the company pay 12 per cent interest for the amount that has been repaid for a year from February, 2006 to February 2007 and for Rs.72,70,288 till the date of repayment.

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