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Health insurance extended to construction workers

Special Correspondent

NEW DELHI: The Centre has decided to extend the Rashtriya Swasthya Bima Yojana to construction workers. This is expected to benefit 2.6 crore people.

Addressing a press conference here on Tuesday, Minister of State for Labour and Employment Oscar Fernandes said the premium would be paid from funds collected by welfare boards under the Building and Other Construction Workers (Regulation of Employment and Conditions of Service) Act, 1996.

Cess collection

Several States were already collecting cess in crores, pursuant to a provision under the Building and Other Construction Workers Welfare Cess Act, 1996. It is collected at one per cent for construction work exceeding Rs. 10 lakh.

The scheme would be operated through the State Nodal Agency already set up under the ongoing health insurance scheme for those below the poverty line.

If tenders were already called for selecting an insurance company under the ongoing scheme and granted approval by the Centre, the same premium rate could be extended to building and other construction workers as well, Mr. Fernandes said. However, if tenders were yet to be invited, these workers could be included in the tender document, he said.

The workers pay Rs. 30 as half the price of the smart card given to those covered under the scheme, which provides health insurance to five members of a family for up to Rs. 30,000. The premium under the Rashtriya Swasthya Bima Yojana is shared by the Centre and State in the ratio of 75:25 and 90:10 in the north east and Jammu and Kashmir.

More than 3.35 lakh smart cards have been issued to 16.7 lakh people below the poverty line and over 1,500 had availed themselves of benefits.

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