THIRUVANANTHAPURAM: The Kerala government has significantly increased the financial limit for administrative departments to sanction medical reimbursement claims for government employees undergoing treatment at private hospitals. The limit has been raised tenfold from the previous ₹10,000 to ₹1,00,000 (One Lakh Rupees).
The decision was formalized by the Finance Department through an official order aimed at streamlining the process and ensuring the timely settlement of claims.
New Order to Reduce Delays
According to the official communication, the previous financial limit of ₹10,000 was found to be insufficient, leading to delays in processing claims and creating an additional workload for the Finance Department. The new enhancement is expected to empower administrative departments to clear a majority of claims faster, providing much-needed relief to employees.
The order number for this revision is G.O.(P) No. 120/2025/Fin, dated 03/10/2025.
Strict Conditions Apply
While the financial power has been increased, the government has mandated strict compliance with certain conditions to prevent misuse:
- All claims must be verified and approved by the Head of the Health Department or the District Medical Officer (DMO).
- The settlement of applications must strictly adhere to the Kerala Government Servants’ Medical Attendance (KGSMA) rules, related government orders, and guidelines mentioned in circular No. 82/2022/Fin. For claims made after the implementation of MEDISEP, its specific provisions must also be followed.
- The designated approving authority will be held personally liable for any rule violations or financial loss incurred by the government.
This move is anticipated to make the reimbursement procedure more efficient and less cumbersome for government employees across the state.
