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No funds to pay premium for group mediclaim policy: Jet Airways to staff

Noting that the group mediclaim policy would cease from May 1, Jet Airways Chief People Officer Rahul Taneja urged employees to take a medical insurance cover of their choice

Press Trust of India  |  New Delhi 

Jet Airways staff
Photo: Kamlesh Pednekar

In continuing woes for staff, Airways has said there are no funds to pay premium for the group policy that expires on Tuesday.

The more than 25-year-old airline temporarily suspended operations on April 17 as it ran out of cash after lenders declined to extend emergency funds.

Airways Chief People Officer has informed employees that the airline would not be able to fund the premium for the group policy.

"In the absence of any emergency funding from the lenders or any other source of funds forthcoming in the near future, we find ourselves facing a situation where we are not able to fund the premium of our Group Policy. The policy lapses on the midnight of April 30.

"These circumstances are not of our doing and much as we would wish to do things differently, we are left with little choice," he said in a communication.

The full service carrier has more than 20,000 employees, including pilots and engineers.

Noting that the group mediclaim policy would cease from May 1, Taneja urged employees to take a cover of their choice.

The domestic lenders to Airways have initiated the bidding process for sale of up to 75 per cent stake in the airline and the list of final bidders are expected to be known in the second week of May.

"I must also state that we have not yet given up on our efforts and continue to engage with the lenders and support them in the bid process. We are working with them proactively to find opportunities to revive our beloved airline," the communication said.

First Published: Tue, April 30 2019. 15:42 IST
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