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Staff to bear burden of insurance scheme in RTC

Posted December 24th, 2014, 11:30 AM IST

Staff to bear burden of insurance scheme in RTC

Kochi: The Kerala State Road Transport Corporation (KSRTC) has asked the staff members to take the burden of paying the insurance premium under the employees insurance scheme.

Earlier, the corporation used to meet the premium amount, however, now it has entered into a pact with the State Bank of Travancore to deduct monthly premium from the salary accounts of those employees opting for the insurance cover.

“The pact with the LIC entered on May 8, 2013, ended in July 2014. The KSRTC entered into a new pact with the SBT under which the employees account will be deducted Rs 100 to Rs 1000 based on the policy they select.

It will come into effect from January next and the staff had to submit the required documents at the earliest,” reads a circular issued (LR 8/001894/2014) dated December 4, 2014.

When contacted a senior official said the decision was taken after holding talks with recognized unions on October 24 last and that the financial condition of the corporation did not allow to meet the extra burden.

Meanwhile, the Corporation’s plan to extend accident insurance scheme for passengers is yet to take off. The premium will be levied along with ticket charge on the basis of travel beyond 30 kms. However, tickets priced upto Rs 24 will be exempted from the premium.

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