Budget provides health cover to unorganised sector

In a bid to bring workers in the unorganised sector under the social security net, the government on Friday proposed to a slew of schemes, including Rashtriya Swasthya Bima Yojna, that will provide a health cover of Rs 30,000 to each beneficiary.

The scheme would cover every worker, including his/her family, in the unorganised sector falling in the below the poverty line, Finance Minister P Chidambaram said while presenting the Budget for 2008-09 in the Parliament on Friday.

"I am happy to report that most of the states have agreed to join the scheme and it will be launched in Delhi and in the states of Haryana and Rajasthan on April 1, 2008," he said.

The government would provide Rs 205 crore (Rs 2.05 billion) as the Centre's share of the premia in 2008-09.

Commenting on the government's initiative on the social sector, MetLife India Managing Director Rajesh Relan said the focus on health care and

education is appreciable.

"The key to success now would be the timely implementation of the measures announced," he said.

The finance minister also proposed to allocate an additional Rs 1,000 crore (Rs 10 billion) for the Aam Admi Bima Yojana that provides insurance cover to landless households through LIC.

The scheme is expected to cover one crore poor households by September 30 this year. Regarding the Indira Gandhi National Old Age Pension Scheme, which was earlier expanded to cover all persons over 65 years of age belonging to below poverty line category, the finance minister proposed to allocate Rs 3,443 crore (Rs 34.43 billion) for the coming fiscal as against Rs 2,392 crore (Rs 23.92 billion) in 2007-08.

This has been done to expand the scheme to cover 157 lakh beneficiaries from 87 lakh.

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