Rs 1,000 crore social security scheme for unorganised sector

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New Delhi, Feb 29 (UNI) Finance Minister P Chidambaram today said Rs 1,000 crores will be spent on a social security scheme for unorganised workers.

The scheme, which was launched on October 2, 2007 called Aam Admi Bima Yojana (AABY), will now extend to death and disability insurance cover through Life Insurance Corporation of India (LIC) to rural landless households.

The central government will bear 50 per cent of the premium of Rs 200 per year per person and the Finance Minister, while presenting the General Budget 2008-09 in the Lok Sabha, said, ''I would urge the state governments to come forward to bear the other 50 per cent on behalf of the beneficiaries.'' He said the fund will be maintained by LIC and the scheme will be finalised in consultation with state governments and begin implementation in 2007-08.

Mr Chidambaram said in anticipation of the Unorganized Sector Workers' Social Security Bill, 2007 being made into law, the Government has introduced three schemes viz Aam Admi Bima Yojana, Rashtriya Swasthya Bima Yojana and Indira Gandhi National Old Age Pension Scheme with an objective to provide social security to workers in the unorganized sector in a phased manner.

He said Rashtriya Swasthya Bima Yojana will be implemented with effect from April 1, 2008.

He added that the Indira Gandhi National Old Age Pension Scheme, which was in large with effect from November 19, 2007 to include all persons over 65 years falling under Below Poverty Line (BPL) category, proposed to allocate Rs 3,443 crore in 2008-09 as against Rs 2,392 crore in 2007-08 because of expansion of coverage from 87 lakh to 157 lakh beneficiary under the scheme.


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