Jammu and Kashmir government is contemplating health insurance for 3.40 lakh government employees and pensioners in the state, a senior official said today.

"The state government is contemplating health insurance under Group Mediclaim Insurance for three years on annual basis for its 3.40 lakh government employees, pensioners, besides officials of PSUs, autonomous bodies, local bodies, legislators and their dependents," Special Secretary of State Finance Ministry Mustaq Sidiqi said today.

In this direction, the state government has invited sealed offers of premium rates from companies with requisite experience, Sidiqi said.

The insurance will cover the employee and his five family members, he said.

"The insurance will also cover pre-existing and post contracted diseases," he said, adding that cashless facilities at designated hospitals both within and outside the state will also be mutually agreed upon.