The Medical Insurance Scheme for State Employees and Pensioners (MEDISEP) will come into force from June 1.

As per the scheme approved by the Cabinet on Friday, State government employees, part-time contingent staff, teaching and non-teaching staff in aided sector, employees of local self-government institutions, universities, High Court and such others who come under the ambit of the Kerala Government Medical Attendant Rules will be covered under the scheme.

Annual cover

The scheme, which has a tenure of three years, offers a three-tier cover for its beneficiaries. Each family would be eligible for an annual cover of ₹2 lakh. An additional benefit amounting to a maximum of ₹6 lakh would be given to each family during the three year period for treating serious ailments, organ transplant and such others.

If the ₹6 lakh additional cover is insufficient for a family for critical care, another component up to ₹3 lakh would be given to the family from a corpus of ₹25 crore to be constituted by the insurance company for this purpose.

MEDISEP was part of the budget speech for 2017-18. The government had invited expression of interest from insurance companies approved by the Insurance Regulatory and Development Authority and floated e-tender for selecting the insurer.

The company

Reliance General Insurance Company had quoted the lowest annual premium of ₹2,992.48, including Goods and Services Tax and thus it was selected for implementing the scheme. A sum of ₹250 each would be deducted per month as insurance premium.

In the case of service pensioners, it would deducted from the ₹300 being given as medical allowance. The government would pay the premium in three advance instalments to the insurance company. The reimbursement scheme in force for outpatient medical treatment will continue.