Centre plans social security for unorganised sector

The Central government is considering to extend social security cover, including life and health insurance, to a large section of workers in unorganized sector.

The Union Cabinet which is scheduled to meet on Thursday may take a call on the proposal. Since the model code of conduct is in force in view of polls in five states, it restricts the government from making any announcements.

So the proposal may take some time for implementation.

The social security cover is meant for those who are involved in risky jobs like in mining and transport.
The next category to be covered under this plan may be of rag pickers, sources say.

The proposal is based on the recommendations of the Prime Minister’s Task Force constituted in 2008 by the central government.

The labour ministry has accepted the Task Force report. The ministry has suggested health insurance for the workers in the mining sector as part of its agenda to extend social security to the unorganized sector.

The Centre’s proposal also proposes to cover taxi and auto-rickshaw drivers, and rickshaw pullers. Approximately, 80 lakh people will benefit from this scheme.

According to the sources, the beneficiaries from the auto sector have to pay 30 percent of the insured sum and the rest will be born by central and state governments.

The workers in the mining sector and rikshaw pullers, who can’t afford to pay premium, would be taken care of by the central and state governments who will cough up this amount. The Finance ministry’s clearance for the latter category is yet to come through.