THIRUVANANTHAPURAM: New India Assurance Company Ltd, a public sector insurer, has once again secured the KSEBL Group Insurance Scheme for Personal Accident for employees of Kerala State Electricity Board Ltd.
businessbenchmark.news could confirm that the scheme, which provides a death coverage of Rs15 lakh, will continue with the same premium structure – Rs600 plus 18 per cent GST, bringing the total cost to Rs708 per employee.
The ongoing policy, also managed by New India Assurance, is set to expire on February 14, with the new scheme commencing from February 15, 2025.
In keeping with its practice of sourcing insurance coverage from public sector companies, KSEBL invited bids from five state-owned insurers.
The New India Assurance Company Ltd, United India Insurance Company, National Insurance Company Ltd, State Bank of India Life, and LIC of India were invited to submit their quotes.
However, only three – New India Assurance, United India Insurance, and National Insurance – submitted their bids within the stipulated deadline.
After evaluation, New India emerged as the lowest bidder, ensuring continuity in coverage for KSEBL employees under unchanged terms.
Challenges in Govt staff health insurance
While KSEBL employees can expect a seamless transition in their accident insurance scheme, their counterparts in other Kerala government departments have been facing mounting issues with the health insurance scheme managed by Oriental Insurance Company.
The state government’s health insurance plan for its employees and pensioners, run by Oriental, has come under criticism due to delays in claim settlements and difficulties in accessing benefits.
Several employees and pensioners have raised concerns over protracted claim processing times, frequent disputes over admissible expenses, and a cumbersome reimbursement procedure.
Complaints have also surfaced regarding hospitals refusing cashless treatment due to pending dues from the insurer, forcing policyholders to bear out-of-pocket expenses and navigate bureaucratic hurdles for reimbursement.
The contrast between the relatively smooth administration of KSEBL’s accident insurance scheme by New India Assurance and the ongoing struggles with Oriental Insurance’s health scheme highlights the need for better oversight and improved service delivery in government-backed insurance programs.
