BMC first civic body to offer health cover to its employees

In what can be considered as a first of its kind initiative by a public sector agency, the BMC has decided to offer a nationwide health insurance cover to all permanent employees – 1.10 lakh in total.

The civic group leaders approved a proposal in this regard on Monday.

According to the plan, the BMC will set aside Rs75 crore for insuring the employees, along with a buffer fund of Rs10 crore. The buffer fund is meant for health expenses incurred beyond the stipulated amount in the proposed scheme.

While the country's richest civic body will cover all the employees, the scheme is going to mainly benefit employees vulnerable to health hazards from departments like conservancy staffers, fire brigade and those working at its TB hospital in Sewri.

Kiran Acharekar, deputy municipal commissioner (general administration) said that after approaching several agencies, the civic body has zeroed in on New India Insurance Company, which quoted the least premium amount. The civic body will pay Rs7,000-Rs 8,000 premium per employee, who so far have been receiving a health allowance of Rs300 per head.

"We did not want to increase the health allowance, but introduce a fresh scheme for our staffers. The new scheme is going to help our staffers as four members (spouse and three children) of an employee's family, besides him/her will be covered. Also, a majority of our staff stays outside Mumbai limits. So, the scheme will be convenient for such staffers. The best part is that it will be applicable across the country and for illnesses of all types," Acharekar said.

The official said the BMC plans to offer insurance cover between Rs 5lakh and Rs10 lakh.