HYDERABAD: The Government will invite fresh bids from insurance companies for the second phase of Rajiv Arogyasri community health insurance scheme that would be launched in five more districts from November 1.

Minister for Medical Education and Health Insurance Galla Aruna and Chief Executive Officer of the programme, A. Babu, said at a press conference here on Wednesday said that fresh tenders would be invited from insurance companies for the second phase of the scheme to be implemented in five districts from November and another five from April next.

The Minister said Star Health and Allied Insurance Company Ltd, an IRDA licensed company, had won the bid for the pilot project in Anantapur, Mahabubnagar and Srikakulam. But, Government wants to invite fresh bids so that the lowest bidder gets the right to cover the beneficiaries.

Mrs. Aruna denied the charge that Star Health was favoured at the cost of other insurance companies while finalising the bids.

The following companies participated in the tenders called for in February this year: ICICI Lombard General Insurance, Star Health, United Insurance Company, National Insurance Company and Oriental Insurance Company.

Technical panel

A technical committee evaluated the technical bids and recommended that two bids submitted by the United India Insurance and ICICI Lombard General Insurance be considered for further evaluation. The ICICI Lombard quoted Rs. 468 and United India Insurance Rs. 800 per policy.

The Government favoured a premium of Rs. 300 to Rs. 350 per family and hence no decision was taken selecting the company. During the second bid, six companies had participated and the bid submitted by Star Health at a premium of Rs. 330 per family was found to be lowest.

Mr. Babu said Government proposed to conduct a survey to weed out the bogus ration card holders so that only genuine card holders are issued health insurance cards.