Bengaluru, 4 Jan 

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.

The decision follows the death of  IAS officer Mahantesh Bilagi in a road accident last month, in which his family received nearly Rs 50 lakh less than the entitled insurance amount due to a technical oversight.

Explaining the background, Patil said the issue came to light during a governing council meeting of a medical college. "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," he said in a statement.

According to the minister, the lapse had serious financial implications for the bereaved family, prompting the department to review insurance coverage for its employees.

Taking serious note of the matter, Patil said he had instructed the Additional Chief Secretary to issue a circular mandating all doctors, officers and staff in medical colleges and hospitals to enrol in term insurance schemes aligned with their current salary and designation. The move aims to ensure that families receive the full insurance benefits in the event of an employee’s death.

Patil said several employees, particularly those in lower pay scales, may not have opted for sufficient term insurance due to financial constraints or lack of awareness. To address this, officials have been directed to engage with leading banks and insurance companies to identify the best possible term insurance options at affordable premiums.

He also said the department would examine the feasibility of extending term insurance coverage to contract employees as part of a broader social security initiative.

In a related administrative decision, the minister said he had directed the Additional Chief Secretary and heads of medical colleges and hospitals to consider absorbing experienced and meritorious outsourced employees into contract positions. This process, he said, would be carried out strictly in accordance with the reservation roster.

Instead of opting for fresh recruitment to fill temporary vacancies, eligible outsourced staff with proven experience may be migrated to the contract category to ensure continuity in services and fairness in employment practices, he added.