Andhra Pradesh Chief Minister YS Jagan Mohan Reddy launched the second phase of the YSR Bima Scheme from the Tadepalli camp office on Thursday.
As the central government had withdrawn from the scheme on April 1, 2020, the AP government to safeguard the poor families who have lost their bread earners carrying out YSR Bima by bearing the entire cost of the scheme.
The Chief Minister disbursed Rs 750 crore to provide insurance premium for 1.32 crore families for the year 2021-22.
The State government formulated the scheme to provide life insurance coverage to primary bread earners of their respective families. In the event of natural death of the worker within the age bracket of 18-50 years, Rs 1 lakh is paid to the family and in case of accidental death within the age bracket of 18-70 years, Rs 5 lakh is paid.
The AP government finances the payments of insurance premiums for unorganised workers under YSR Bima and the insurance pay-out is implemented by the respective bank, no other State government has taken up an initiative that bears the entire payment of premiums for a free insurance scheme. A total of Rs 1,307 crore has been spent under YSR Bima to date.
Ever since the Centre backed out from this scheme, the AP government has covered the insurance premiums of 1.21 crore eligible families last year. Despite the State government paying the premium in full, banks were only able to enrol 62.5 lakh beneficiaries, but could not enrol the remaining 58.5 lakh.
It is estimated that 12,039 eligible beneficiaries who had passed away in the last year missed out on their insurance payouts.
This is due to the lapses by banks not enrolling the eligible people in time or who were enrolled but did not complete the 45-day lien period. As a compassionate gesture, the government took it upon themselves to provide support and assistance to the bereaved families, by crediting a sum of Rs 254.72 crore to all the 12,039 families, in equal amounts to what they would have received from the insurance claims. To help the beneficiaries further, the government has set up an exclusive toll-free number, 155214, to clarify or settle any issues of insurance registration, claims, and/or complaints concerning.