Congress MLC Mohan Joshi had raised the issue during the Question Hour, alleging that insurance companies had syphoned off public money.
Under the scheme, the Centre provides 75 per cent of the money while state provides the rest.
The scheme targets labourers to ensure that they get medical treatment at hospitals.
The Minister conceded that the scheme was tailor-made for insurance companies to earn profit.
In Maharashtra alone, Rs 215 crore were paid as premium and claims of Rs 134 crore were not settled, he said.
Mushrif said he has written to Union Labour Minister Mallikarjun Kharge asking for a CBI inquiry.
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