Govt weaves insurance scheme for textiles sector

Textiles Minister Shankarsinh Vaghela today said a new health insurance scheme for handloom weavers has been devised by the government in collaboration with ICICI Lombard, which will replace the existing health package scheme.

Under the new scheme, a handloom weaver and his family can avail medical treatment amounting to a maximum of Rs 15,000 per annum by paying a premium of Rs 200 per annum.

The rest of the premium, which amounts to Rs 800 per weaver, will be borne by the government. Other than providing maternity benefits and pre- and post-hospitalisation charges, the scheme also covers all pre-existing diseases.

"Of all the segments in the sector, handloom is our priority and in its first year the scheme is estimated to cover 350,000 weavers," Vaghela said.

"We have not set any fixed targets and money is not a concern here. If the scheme turns out to be a big draw which I am sure it will, the government will ensure that the weavers are benefited," he added.

The scheme will be implemented through the ICICI Lombard General Insurance Company Ltd and the Commissioners of Handlooms of the State Government will be responsible for implementing the scheme in their respective states.

It can be availed by the weaver through a network hospital where he will not have to pay any money upfront.

Alternatively the weaver can also avail of reimbursements in case of a visit to a non-network hospital.

The textile ministry claims that the new scheme will not only cater to more weavers, it will also involve greater contribution on the part of the government.

Under the existing health package scheme, which was introduced in 1992-93, Rs 2.21 crore and Rs 3.69 crore was released to various state governments for the benefit of 26,814 and 72,198 weavers respectively in the years 2003 and 2004.

In comparison, the health insurance scheme is expected to benefit more than 3.5 lakh weavers with a government contribution of Rs 27.06 crore.

"Our emphasis on handloom cannot be more pronounced. Last year we allocated Rs 154 crore for the segment and it was fully utilised. This year Rs 156 crore and more than Rs 50 crore have already been utilised," Vaghela said.