HC stays G.Os on new health insurance scheme for transport staff

Madras High Court today stayed operation of three Tamil Nadu Government Orders (GOs) pertaining to new health insurance scheme for employees of state transport corporations in the state. Justice N Paul Vasanthakumar granted the stay on a petition filed by Tamilnadu State Transport Employees Federation seeking to restrain the government from altering, annulling or modifying the existing Special Medical Assistance Scheme in any manner and from implementing the new Health Insurance Scheme announced and introduced by the government by GO Ms No 430, GO Rt No 65 and GO No 174. The petitioner submitted that the transport corporations had introduced the Special Medical Assistance Scheme for the employees based on a settlement reached under Section 12 (3) of the Industrial Dispute Act on September 28, 1995.

As per Clause 79 of the minutes of the settlement, every workman had to contribute Rs five every month towards the scheme and the corporations have to make an equal contribution.

The petitioner contended that the Special Medical Assistance was a better scheme than the new scheme introduced by the state government. The government has no power to do away with the existing scheme framed under the settlement, the petitioner added.

The state government had recently introduced the new health insurance scheme for government employees in collaboration with a private insurance company.