Health insurance for Govt Staff

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Chennai, Mar 20 (UNI) The Tamil Nadu Government will launch a new health insurance scheme for its employees from the coming financial year.

Presenting the State Budget for the year 2008-09, Finance Minister K Anbazhagan said the insurance cover would also be extended to the employees of public sector undertakings, statutory corporations, local bodies and universities.

''This scheme will fully cover medical expenses upto Rs two lakh in a block of four years, incurred by the employee or his family,'' he added.

Treatment for more diseases could be availed under a cashless system, free of cost, by using the identity cards issued.

Stating the government would incur an additional expenditure of Rs 26 crore, Mr Anbazhagan said the service provider had been selected and the scheme would be implemented effectively from the coming financial year.

Giving more sops, Mr Anbazhagan announced increase of Dearness Allowance by six per cent to 47 per cent for State Government employees, teachers, pensioners and family pensioners with effect from January one this year.

The DA arrears would be paid in cash and the government would incur an additional expenditure of Rs 136 crore during the current fiscal and Rs 817 crore in the coming financial year.


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