The Telangana government on Friday said it is working on a scheme to provide life insurance of up to Rs 5 lakh per farmer in the state. The state government plans to pay the entire premium every year on August 1.
Announcing the decision, Chief Minister K Chandrashekar Rao said, “We are already giving Rs 8,000 per acre under Rythu Bandhu towards investment support and supplying free power round the clock. Now we have come out with a unique life insurance scheme for the farmer.”
The insurance scheme will commence on August 15 and farmers will be given insurance bonds, he said. The entire premium will be paid by the government, and the funds for the same will be budgeted. Every year on August 1, the total premium amount will be credited to LIC, the implementing agency, he added.
To a query, Rao said that irrespective of the reason for which a farmer dies, including natural reasons, the insured amount will be paid to the nominee within 10 days of the claim. The CM said the premium amount would have been less in case of accidental insurance, but the government had decided to provide life insurance in order to help the family of the deceased as it was the government’s responsibility.
“Small and marginal farmers in Telangana account for 93 per cent. There are 18 lakh farmers whose holdings are less than one acre. Their livelihood is entirely agriculture and farming. When the farmer dies for any reason, his family will face a lot of hardship. So we have decided to provide Rs 5 lakh insurance coverage to the farmer. This is another step forward by the government,” he said, addressing LIC officers.