New India Assurance takes Orissa govt to High Court

Wednesday 12, January, 2011 The New India Assurance Co Ltd [NIACL] has moved the Orissa High Court challenging the state government’s order unilateral cancelling a work order awarded to it to implement of health insurance scheme under the Rashtriya Swasthya Bima Yojana [RSBY] for BPL families in the districts of Khurda, Cuttack, Sambalpur, Sundargarh, Ganjam and Rayagada stating that it was arbitrary and illegal. Last month the Court issued a stay order on the opening of the financial bids and ordered the government to submit its reply this month. The state government had initially floated tender for twelve districts in two phases for the financial year but six out of twelve districts were re-tendered to include maternity benefits. Incidentally, NIACL on both the occasions was the lowest bidder. However, the state government on August 26, 2009 informed the insurance company the union government of India have approved the tenders of NIACL for Rashtriya Swasthya Bima Yojana (R.S.B.Y) for six districts. Accordingly, the NIACL conducted district level workshops, appointed Third Party Administrator (T.P.A) and also empanelled hospitals for carrying out the Scheme by spending huge amount. As there were mismatch of B.P.L data provided by the state Government to R.S.B.Y site, some of the District Collectors and the then Nodal Agency advised it to stop further enrollment. After the intervention of the union government, the work again started, but the work was again stopped from March 4, 2010 till finalization of a corrected BPL list to be uploaded to R.S.B.Y website.

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