Proposal for Emergency Medical Loan Scheme for Kerala Government Employees

Suggestion for Medical Emergency Fund to Govt Employees

 Proposal for Emergency Medical Loan Scheme for Kerala Government Employees

We have a Situation!
Recently an employee in our office met with an accident while he was on the way to the office. He was riding as a pillion rider. Unfortunately, a dog crossed the path and in that confusion,the pillion rider was thrown from the  bike. 

At SP Fort Hospital, after x-ray and scan, doctor said he had fractured both of his shoulder blade. That was one bad news! For recovery, doctor advised him to take rest and be in the sling for 3 weeks.

Incidents like this happen at unexpectedly, throwing all the plans out of gear. In the case of this fellow, he was the only working person in the family, and other financials was on his shoulder.

Imagine, such a situation can happen to anyone! So, the question is how can an employer support their employees in such cases? In the case of state govt employees, there's no quick way of of disbursing funds to meet such contingencies!  

Objective

To provide financial assistance of ₹50,000 to Kerala government employees for urgent medical expenses, ensuring swift disbursement to meet sudden financial crises due to illness or accidents. at least 2 years of service.

Loan Amount:

₹50,000 for urgent medical expenses.

Disbursement:

The loan amount will be sanctioned through the SPARK software and disbursed through the treasury system within 10 minutes of application.

The load is issued through a partner bank, but the entire processing and disbursement is done through SPARK application.

Application Process:

• Applicant can apply for emergency fund via the individual SPARK login, thereby eliminating the need for formal letters.
• Simplified and fast-tracked approval process for urgent needs.
• After it's issued, the incumbent must submit required medical documents within 30 days. Failing which, necessary action will be taken.

Repayment Terms:

• Repayment to commence from the month following the loan disbursement.
• Repayment period: 10 to 15 months.
• Interest rate: 8%. or 9% as agreed by the ban,

Fund Allocation:

A dedicated emergency fund to be set up by the government for immediate disbursement.
Probably, the initial capital will be around some 25  lakhs.

Benefits

For Employees:

1. Provides quick financial relief during medical emergencies.
2. Eliminates the burden of taking loan from other institutions .
3. Employees feels that employer provides a safety net to face emergencies.

For Government:

1. Boosts employee morale and goodwill towards the government.
2. Demonstrates the government's commitment to employee welfare.
3. Low risk as the loan is backed by a bank guarantee and managed through a structured repayment plan.

Risk Management:

• The involvement of a bank ensures proper management of the loan issuance and recovery process.
• The government's role in guaranteeing the loan minimizes the risk of default.

Implementation Plan

This loan plan must be introduced in a phase manner. Initially, this should only be available for cases when employee is hospitalized. If the plan and the scheme works well, then it can be extended to include loan for his or her immediate family members. Also, to stop people from misusing this scheme, certain checks should be done. 

Partnership with Banks:

• Identify and collaborate with a bank to handle the loan issuance
• Establish terms for the bank guarantee and fund management.

Technical Integration:

• Integrate the loan application and approval process into the SPARK software.
• Ensure the treasury system can handle real-time disbursements.( Disburesment of loan in 10 minutes) 
  

Awareness and Training:

1. Conduct awareness campaigns to inform employees about the scheme.
2. Provide training sessions for employees on how to use the online application system.

Monitoring and Evaluation:

1. Set up a monitoring mechanism to track the disbursement and repayment of loans.
2. Periodic review of the scheme to ensure its effectiveness and address any issues.

Conclusion

The proposed Emergency Medical Loan Scheme aims to provide a quick and efficient solution for Kerala government employees facing urgent medical expenses. By leveraging the SPARK software and treasury system, the scheme ensures rapid disbursement, enhancing employee welfare and demonstrating the government's commitment to their well-being. The structured repayment plan and bank guarantee minimize risk, making this a sustainable and beneficial initiative for all stakeholders.