New health insurance policy for tamil nadu govt employees

Very rarely do I stir myself to comment on insurance sector. But today's news report and photo captions were crying out for a blogspost.
For the last few days the new health insurance scheme for all employees of tamil Nadu government has been making news. It was following a predictable pattern; A perfunctory news about a new health insurance scheme; A few days later news that a new private sector insurance company is offering this product; Additional news that none of the public sector general insurance companies could match the quotation from this new player; and that Tamil nadu government was enticed to finalise the deal with them.
Predictably one section of employees said, that they will not accept this scheme as it is not offered by state owned companies. Nothing was heard of them later.The spokesman of the government came out with information that the premium is so low and the benefits so large, that it is in the interest of the employees, and who offers them is incidental.
Today the scheme is introduced and the first policy handed over to a beneficiary. The irony is all the four public sector general insurance companies were also represented, as they are coinsurers to the scheme.
They don't get the goodwill and publicity but they will be booked for a proportion of the claims that would arise. Heads somebody else wins, but tails these companies lose.