The governor on Wednesday cancelled Group Mediclaim Health Insurance Scheme for employees, pensioners, and accredited journalists.

The announcement was made by the governor Satya Pal Malik in a TV interview which aired last night.

Asked why the contract was given to Reliance company headed by Anil Ambani, the governor declared that he was cancelling it.

The Governor’s administration, through an order No 406-FD dated September 20, choose Reliance General Insurance as the company for implementing the insurance policy with a coverage of Rs 6 lakh for individual and family members on floater basis.

The scheme was made mandatory for all state government employees including employees of PSUs, autonomous bodies and universities. It will be optional for pensioners and other categories of employees.