TG staff set for salary linked insurance cover

1. Telangana likely to roll out salary linked life insurance for nearly 13 lakh employees, teachers, pensioners and contract staff.
2. Families of employees who die in accidents may receive insurance cover of up to ₹1.2 crore; natural death claims could be around ₹60 lakh.

metro india news  I hyderabad

While Telangana government employees continue to await long pending demands such as the Pay Revision Commission (PRC), release of five Dearness Allowances (DAs), fitment benefits and comprehensive health cards, a new welfare measure is likely to be rolled out soon with the implementation of a salary linked life insurance scheme.

The proposed move is expected to benefit nearly 13 lakh people, including serving government employees, teachers, pensioners and contract staff. Employee associations say the scheme already exists under banking norms linked to salary accounts, but has not been implemented effectively across the State due to lack of awareness and procedural hurdles at the field level.

According to employee leaders, the government has recently instructed banks to strictly enforce the existing insurance provisions attached to salary accounts. Banks have reportedly been told that failure to implement the facility could result in salary accounts being shifted to institutions willing to extend the benefits without delay.

Following discussions with the government, several leading banks have reportedly agreed to streamline implementation of the insurance cover. Once operational, the scheme is expected to provide substantial financial support to the families of deceased employees.

Under the proposed framework, the family of an in service employee who dies in an accident could receive insurance benefits of up to ₹1.2 crore, making it one of the highest compensation packages available through salary linked banking schemes. In cases where an employee dies due to illness or other health related reasons, the nominee could receive insurance benefits estimated at around ₹60 lakh.

The scheme would also cover pensioners, though the insurance amount payable to their nominees is expected to be comparatively lower than that available to serving employees.

Officials and employee representatives are currently working with banks to arrive at a uniform insurance structure and benefit package. Significantly, no additional financial burden is expected either on the government or on employees, as banks already deduct nominal annual charges from account holders under existing banking arrangements.

Employee leaders point out that similar insurance facilities are functioning successfully in several other States. In Telangana, however, implementation remained largely confined to urban centres where employees and their families were aware of the provisions and actively pursued claims. In districts and rural areas, lack of awareness among both bank staff and employees often resulted in eligible beneficiaries missing out on insurance benefits.

A formal announcement is expected after Chief Minister A. Revanth Reddy gives his approval, which employee leaders believe could happen in the coming days.

However, the move has also sparked mixed reactions among employees. While many welcome the enhanced insurance protection, others argue that the government should first fulfil its commitments on PRC, pending DAs, fitment benefits and health cards before unveiling other initiatives.