KCR govt to provide Rs 5 lakh life insurance cover for all Telangana farmers

The Telangana government on Friday announced that it would provide life insurance cover of Rs 5 lakh each to all farmers in the state.

The scheme would get underway from August 15 this year, Chief Minister K Chandrasekhar Rao said after chairing a meeting with ministers and officials on the insurance scheme, a release from his office said.

The entire premium, whatever might be the total amount, would be paid by the government, it said. All farmers in the age group of 18 to 59 years would be provided with the insurance. 

He said funds required for the purpose would be budgeted and the total premium amount credited to the implementing agency, the Life Insurance Corporation, by the first of August every year.

The insured amount of Rs five lakh should be paid to the nominee proposed by the insured farmer within 10 days of the claim, "irrespective of the reason due to which a farmer dies, including natural death," the release added.

"This is the first time in history that Rs 5 lakh is the insured amount under a group insurance. It is also a record that several lakhs of farmers are members in the scheme. This has never happened in the history of insurance companies in the country. The group insurance scheme to the farmer of Telangana is a record of its own,” the CMO said in the statement.

"Irrespective of the reasons due to which a farmer dies, including natural death, the insured amount of Rs 5 lakh shall be paid to the nominee proposed by the insured farmer within ten days of the claim. The idea behind this is to come to the rescue of the deceased’s family," the Chief Minister said. 

“The small and marginal farmers in Telangana account for 93%. There are 18 lakh farmers whose holdings are less than one acre. Their livelihood is entirely agriculture and farming and for any reason when the farmer dies, his family will have to face a lot of hardships. This is just another step forward by the government,” Rao further said. 

The Telangana government has tied up with the state-run Life Insurance Corporation of India (LIC) for the implementation of the scheme. 

A separate release from the Chief Minister's office said the state cabinet would meet on May 27 to discuss the new insurance scheme for farmers and also the proposed zonal system for government employment. 

(With PTI inputs)