Mumbai: BMC decides to pay Rs 125 cr for its employees’ medical insurance

Mumbai: After an over eight-month wait, during which time the Brihanmumbai Municipal Corporation (BMC) employees had to survive without medical insurance, the civic body has finally decided to pay up to Rs 125 crore for the premium to the insurance company. However, the decision will take time to come to fruition until which employees will have to continue paying out from their pockets. The decision was taken on Thursday after heated arguments between the Standing Committee members and the administration.

Corporators alleged that while the BMC and the insurance company are busy ‘negotiating’, those ailing staffers or those supporting a family member in hospital, are going through a harrowing time.  Ravi Raja, corporator and Congress group leader, said the civic body is not taking the committee seriously. “The corporation is rich merely by budget. As far as execution and reality is concerned, it is the poorest of all,” he said, adding, “There should be a positive response from the corporation or we will have to take brave steps.”

Scores of BMC employees were left in a fix after the BMC, without warning, withdrew the health insurance cover in August 2017. Moreover, the premium amount was being deducted from their salaries and pensions every month. The BMC said the insurer — United India Insurance — is demanding Rs 166 crore for the financial year 2017-18, after providing the same services for Rs 96 crore the previous financial year.

“Initial offer was Rs 83 crore in the year 2015, followed by Rs 92 crore and Rs 96 crore in 2016 and 2017 respectively. But this year, the company demanded Rs 166 crore citing 40 percent increase in premium,” said Vijay Singhal, additional municipal commissioner (AMC). He also added that the corporation is also sensitive towards employees.

Yashwant Jadhav, Standing Committee chairman, accepted that the administration failed to take correct and timely decisions and has ensured the corporators that a decision will be taken by next committee meeting. “It is a serious issue and the civic body should consider it. The administration has not taken the right decisions that are expected from them. But if a decision is not taken in the meeting, the next committee meeting will not be conducted,” said Jadhav.