FinMin plans social security insurance scheme for unorganised sector

Posted By: Religare
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FinMin plans social security insurance scheme
In a bid to extend insurance penetration to the rural areas, the finance ministry is planning to provide a comprehensive social security insurance scheme for lakhs of workers in the unorganised sector.

"The scheme seeks to provide life, health and retirement pension schemes under one cover," said a senior government official.

As per the ministry, Life Insurance Corporation (LIC) and the four PSU general insurance companies would manage the corpus, wherein the majority of the premium would be shared among central and state governments and the beneficiary.

"We are yet to decide on the ratio of premium sharing. Anyway, the government would bear maximum share of the premium under the cover," he said, adding that private sector players could also come forward and join the scheme.

Meanwhile, the details of the individual would be maintained by central record-keeping agency (CRA). The plan comes in line with the financial inclusion drive by the finance ministry which aims at reaching out to the poor workers.

Thus, through the scheme, the ministry is also considering bringing on board various government flagship healthcare and insurance schemes, National Rural Health Mission (NRHM), Rashtriya Swasthya Bima Yojana (RSBY) and Aam Admi Bima Yojana.

Dion Global Solutions Ltd

Read more about: insurance, pension, lic, government
Story first published: Tuesday, November 22, 2011, 12:30 [IST]
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