The Governor’s administration in Jammu and Kashmir has rolled out group mediclaim health insurance scheme for employees, pensioners and accredited journalists on September 20. Interestingly, the employees have been asked by the Central government to buy health insurance from Reliance General Health Insurance Company Ltd. instead of the state-owned insurance group Life Insurance Company (LIC).

The order issued by the Government of Jammu and Kashmir read, “The policy has been tied with M/s Reliance General Health Insurance Company Ltd on annual premium of Rs 8,777 and Rs 22, 229 (for employees and pensioners respectively).”

“The policy is mandatory for all the state government employees (Gazetted as well as Non-gazetted), State Universities, Commissions, Autonomous Bodies and PSUs,” it added.

Congress leader Salman Nizami called out PM Narendra Modi for being invested to prop up Ambani-owned Reliance company.

Modi- Reliance nexus: If you want an insight into how Modi is invested to prop up Reliance, look no further than J&K where all Govt employees are being forced to buy Reliance insurance policy but not Govt's LIC wd out bidding. Premium collection wd be 8000 crore per Annum! pic.twitter.com/CX1QbhY1BK — Salman Nizami (@SalmanNizami_) September 26, 2018

Furthermore, Employees Joint Action Committee (EJAC) in Jammu has also objected to the move. “It is just to benefit a particular company that Govt employees are being made scape goats. It is totally unjustified and a big burden on State Govt employees in specific the non- gazetted cadre,” the employees body said.

It also claimed that same annual premium of Mediclaim Insurance Policy for all category of Government employees was “unfair, unjustified and unacceptable,” reported Dailyexcelsior.

“The annual premium was fixed nearly about Rs 5300 while giving the same amount of insurance cover but now a deal has been struck Reliance Insurance with more than 65% increase annual premium that is Rs 8770 of Reliance Insurance from Rs 5300 of ICICI Bank, we smell a rat in it,” the daily quoted the committee as saying.

Allegations of crony capitalism against the Narendra Modi government have gained much media attention lately. First, reports suggested that the BJP government bent rules to award Institute of Eminence tag to Mukesh Ambani-owned Jio Institute.

Similar allegations surfaced with respect to the Rafale deal struck by the National Democratic Alliance (NDA) government, which benefits industrialist Anil Ambani’s company with no experience in defence or aircraft manufacturing.