Hyderabad: Thousands of Satyam employees working across the country are set to lose their health insurance cover from as the beleaguered IT giant has failed to renew the premium. The company did not pay the approximately the Rs 30 crore outstanding premium “despite repeated requests” to Iffco-Tokio General Insurance Company on Wednesday which is the last date for payment, according to reliable sources.
The personnel from the Third Party Administrator (TPA) – TTK Health Care Pvt. Ltd – also tried to reach Satyam top brass in vain. While the lower-level staff replied that a decision would be taken at the top level, none of them took any measures to pay the premium, the source said. “When we asked them for the payment a couple of days ago, we were told that the first priority was to run the office and pay the salaries but not health insurance,” the source said.
The immediate implication for the employees is loss of health cover. “Unlike life insurance there is no provision to pay later with fine. The company has to take a fresh policy. Till then no health claims would be valid,” he said. The limit of health insurance cover for Satyam employees varies at different levels beginning from Rs 2 lakh. The average claim size of Satyam has been between Rs 12,000 and Rs 15,000, according to data available with TTK Health Care.
Employees shocked
When contacted, some Satyamites were shocked to know that the premium was not paid.
“This is very painful as our life has already been ridden with uncertainities over the job itself. I see this as an indication of future shocks. I hope, I don’t lose my job by the month-end,” Mr A. Janardhan, a Satyam staffer, said.
Top brass under cover
Paradoxically, the top brass of Satyam still enjoy insurance cover (other than health) as on date under the D&O policy which protects the personal fortunes of individual directors and officers, in respect of personal liabilities arising out of their wrongful acts such as breach of duty, breach of trust, neglect, error, misstatement or misleading statement.
“As on date the insurance cover for Satyam top brass under Directors and Officers (D&O) and Errors and Omissions (E&O) policies is very much in force,” an official from ICICI Lombard said while refusing to give details about renewal date and premium dues.
Sources: The Hindu Business Line
Friday, January 23, 2009
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