Karnataka to make term insurance mandatory for Medical Education Dept staff

The Karnataka government has decided to make term insurance mandatory for all doctors, officers and staff working under the Medical Education and Skill Development Department, Minister Sharan Prakash Patil said on Sunday.

Patil, who holds the medical education portfolio, said the decision was taken following the death of IAS officer Mahantesh Bilagi in a road accident last month, after which a technical lapse resulted in his family receiving nearly ₹50 lakh less than the entitled insurance amount.

Insurance lapse prompted policy decision

“The issue came to notice during a governing council meeting of a medical college, where it was found that the officer had not updated his service status in the term insurance system after being promoted from the State Civil Services to the IAS,” Patil said in a statement.

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He said the lapse had significant financial consequences for the officer’s family.

Taking serious note of the matter, the minister said he had directed the Additional Chief Secretary to issue a circular mandating all medical college and hospital doctors, officers and staff to enrol in term insurance schemes aligned with their current salary and designation.

'Full financial protection for families'

The objective of the move, Patil said, is to ensure that families receive the full entitled insurance cover in the event of an employee’s death.

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He noted that many employees, especially those in lower pay scales, may not have opted for adequate term insurance due to financial constraints or lack of awareness.

Officials have been instructed to engage leading banks and insurance companies to offer suitable term insurance plans at affordable premiums, he said.

Contract staff coverage under consideration

Patil also said the department would examine the feasibility of extending term insurance benefits to contract employees as part of a broader social security framework.

In a related decision, he said the Additional Chief Secretary and heads of medical colleges and hospitals have been directed to consider absorbing experienced outsourced staff into contract positions, strictly in accordance with the reservation roster.

Instead of fresh recruitment to fill temporary vacancies, eligible outsourced employees with proven experience may be transitioned to contract roles to ensure continuity and fairness in employment, the minister said.

(With agency inputs)