Govt. ‘pick-pocketing’ state sector employees in health insurance scheme, unions claim
View(s):By Bandula Sirimanna
Moves by the Treasury to increase the monthly premium of a Sri Lankan government insurance scheme which state workers must compulsorily contribute is stirring unrest among trade unions.
The payment of the Agrahara health insurance scheme run by the National Insurance Trust Fund (NITF) was increased in the last budget to Rs 125 from Rs.75.
General Secretary of the Ceylon Teachers’ Union, Joseph Stalin told the Business Times that public sector employees saddled with severe economic hardships cannot manage the forcible deduction of Rs. 125 to swell the government coffers without giving any benefits or relief. He said it was daylight robbery,
He noted that the normal practice in the insurance field is to inform the policy holder and get his consent before increasing the monthly premium, but in this instance the government has failed to follow this normal insurance practice.
The government is ‘pick-pocketing’ the money belonging to public sector workers who struggle to survive with their meagre salaries, he said, adding that the rulers should be shamed for collecting money from the Agrahara insurance scheme without providing any benefits to beneficiaries.
On one hand, employees are deprived of the returns from their own funds while on the other hand the government is collecting a huge sum of money amounting to Rs. 1.95 billion every year from around 1.3 million public sector employees, he said.
President of the Health Services Trade Union Alliance, Saman Rathnapriya, pointed out that when this insurance scheme began the government had pledged to provide Rs.69 as returns every month.
This hasn’t been paid yet. The government has collected around Rs.8 billion through this method hoodwinking the public servants, he added.
General Secretary of All Ceylon Trade Union Federation Samanthe Koralearachchi noted that all public sector trade unions will join hands to carry out an agitation campaign against the government, demanding the authorities not to deduct money for Agrahara insurance scheme without providing benefits for employees.
He said that they have already launched an awareness campaign of distributing leaflets to explain employees regarding this situation.
He vowed to intensify the protest campaign if Treasury authorities fail to come up with a viable package of benefits for beneficiaries of the scheme and stop using this money to maintain 67 ministries and public sector institutions.
Responding to these allegations, NITF Chairman D. Vidanagamachchi told the Business Times that the decision to increase the insurance premium was taken by the Finance Ministry and it was announced in 2013 budget.
The NITF is following the circular issued by the Public Administration Ministry and it cannot be revised or withdrawn, he said.
He noted that insurance benefits have been increased and the contributions made to the insurance scheme cannot be refunded when state employees go on pension.
This was the policy of any insurance scheme and the trade union demand was unrealistic, he said.
He revealed that the NITF has raised the insurance benefits on account of death to Rs. 100,000 from Rs. 50,000 and for surgeries in respect of kidney failure, cancer and heart disease by Rs. 50,000 to Rs. 400,000.
The insurance scheme was introduced by the Ministry of Public Administration Circular No: 5 /1997 and came under the NITF 1st January 2006.
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