Insurance cover for 2.11 crore NREGA workers

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After ensuring that all the beneficiaries under the National Rural Employment Guarantee Act (NREGA) have access to formal banking system through banks and post offices, the Centre has decided to extend insurance cover to all 2.11 crore workers under the United Progressive Alliance’s flagship wage employment programme.

Recently, the finance ministry has given its nod to cover all the workers under the NREGA in the rural poor category so that they could be covered with Janashree Bima Yojana (JBY). The finance ministry has approved the proposal prepared by the rural development ministry, which is nodal authority to implement NREGA in the country.

JBY provides for life insurance protection to the rural and urban poor persons below poverty line and marginally above the poverty line. Launched in 2000 and administered by Life Insurance Corporation of India (LIC), the group insurance scheme is designed for people below the poverty line and targeted at persons engaged in occupations such as rickshaw pullers, auto drivers, construction workers, farm labourers, handloom weavers etc.

The premium under the scheme is Rs 200 per annum per member. While half of the premium will be contributed by the member or the state governments and the balance will be born by the Social Security Fund. The families of the insured persons will get Rs 75,000 in the event of death due to accident or permanent disability while the beneficiary will be eligible for Rs 30,000 for partial disability. Incase of permanent partial disability, due to accident, the beneficiary will get Rs 37,500.

However, the workers who will be included under such insurance programme has to fulfil certain criteria before being enrolled in the insurance programme. The workers must need to put in a minimum period of 15 days in a year for being eligible for the insurance cover. According to rural development ministry, the insurance cover will be reviewed each year.

However, a worker person will not be eligible for insurance cover under JBY scheme if she/he has already been covered by any other insurance schemes for life and disability sponsored by any other ministries or departments.

Recently, the ministry of rural development had made payment of wages under NREGA to be made through banks and post offices. The ministry stopped cash payment of wage for ensuring transparency, delay and stopping pilferages in NREGA wage payment..