The Jammu and Kashmir government’s decision to blacklist Reliance General Insurance Company Ltd (RGICL) for two years has revived attention on a group mediclaim insurance scheme that collapsed within months of its launch in 2018, raising questions over delayed accountability in public procurement cases.
The scheme, introduced in October 2018 during Governor’s rule, was meant to provide health insurance coverage to government employees and pensioners under a tripartite arrangement involving the J&K government, Trinity Reinsurance Brokers Limited and RGICL. The government had released over ₹62 crore as premium payments for the programme. However, the scheme was terminated in December 2018 after it failed to become operational. Key deliverables such as issuance of insurance cards, empanelment of hospitals, and development of a functional digital platform were reportedly not implemented, leading to administrative concerns over contractual non-performance.
The matter was subsequently referred to investigative agencies, and over the years it moved through multiple layers of scrutiny, including the Anti-Corruption Bureau, the Central Bureau of Investigation (CBI) and the Enforcement Directorate (ED). The agencies examined allegations related to eligibility, procedural compliance and financial transactions linked to the scheme.
While the scheme itself was scrapped within two months of launch, the latest government order imposing a two-year ban on the insurance company has brought renewed focus on why formal punitive action at the procurement level has taken nearly eight years to materialise.
Broader questions
The development also raises broader questions over the time taken in concluding accountability measures in public procurement disputes, particularly in cases where large-scale government expenditure is involved but services are not delivered.
Officials maintain that the blacklisting action is intended to safeguard public interest and ensure probity in future procurement processes in the Union Territory.
Published on May 1, 2026