Satyam fallout: Onsite Employees lose credit cards and insurance coverage

US-based employees of the embattled Satyam Computer Services have been asked to return their credit cards by an American financial institution. Employees, who are still coming to terms with the uncertainty about the firm’s fate, have also found that their medical insurance is no longer valid.

Last week, employees in the US received a letter from Northwest Federal Credit Union that their credit card accounts had been terminated. In its communication, a copy of which is with ET, the financial co-operative said, “This decision is based upon our reinvestigation and reevaluation of your (employees’) credit information as it pertains to employment.”

Most Satyam employees in the US have an account with Northwest Federal Credit Union as it’s amongst the few financial institutions that offer credit cards and other services based on a letter from the employer and salary statement. American banks generally require either a proof of prior credit history or a one-year stay in the US before someone can avail a credit card, explained a Washington-based Satyam employee.

A Satyam spokeswoman, however, denied that employees in the US have been asked to return their credit cards. “As a matter of routine, banks re-verify funds and payment arrangements. That is underway now. Requests to return cards has not occurred,” she said in an e-mail statement. The company has thousands of onsite employees outside India but ET was not able to ascertain the exact number of employees in the US.

Similarly, employees in the US who were provided a health insurance cover by Great-West Healthcare, which has now been acquired by insurer Cigna, found that they were ineligible for the insurance. A New York Based employee alleged that the management had failed to inform staff that they were no longer eligible for health insurance. “We learnt of this when the family members of some of the employees were told by the hospitals that they would have to pay in cash as their claims could no longer be processed,” he added.

Some Satyam employees sought an explanation from Great-West. “We were told that our company has defaulted in paying the premium to the tune of over $4 million. When confronted with this evidence, the management said they would address the issue. One cannot survive in the US without credit cards and health insurance,” said the employee.

The Satyam spokeswoman said health insurance for US employees has not been cancelled and the insurer is just conducting a brief re-verification process. She refused to comment on the outstanding payments to Great-West.