THIRUVANANTHAPURAM: There are indications that the monthly premium in the second scheme of Medisep, the health insurance scheme for state government employees and pensioners, will be higher than the basic amount of Rs 750 approved by the cabinet. Insurance companies will put forward in the tender an amount higher than the amount of Rs 750 fixed by the government. Finance Minister K.N. Balagopal clarified in the assembly that the government will have to pay it.

The current monthly premium for the three-year plan is Rs 500. The government's stance is that the premium can be increased every year in the new plan. The government has agreed to allow a 5% increase in the first year's premium for the second year. The contract period for the second phase is two years.

Oriental Insurance Company,

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