The Hindu : Insurance scheme for migrant labour put on hold

Online edition of India's National Newspaper
Saturday, Jun 21, 2003

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Insurance scheme for migrant labour put on hold

By Aarti Dhar

NEW DELHI JUNE 20. The Labour Ministry's proposal to provide mandatory insurance cover to Indian migrant labourers has been temporarily put on the hold, following objections raised by the Finance Department.

The Department has questioned the Ministry's decision to virtually ``hand over'' the project, involving crores of rupees, to a particular insurance company that had been identified by the Ministry. The insurance company was to provide a cover to the migrant labourers to give financial help in the case of death, permanent or temporary disability and illness. Sources in the Ministry said that the Ministry's own Finance Department told the Labour Minister that it was against the rules to give a financial project to any company without calling for open tenders. The objection came just as the proposal went to the Finance Department for final approval before it was to be formally announced.

The Labour Ministry has withdrawn its earlier proposal and decided to allow more than one players in the field. All interested insurance companies would be free to float their own schemes and the individuals could opt for one of them. The insurance money would either be paid by the individual or the employers, with the Government only being a facilitator.

The provision for an insurance cover is to be included in the Emigration Act, 1983. In the case of death, the insurance company would pay for bringing his body back to India, along with an attendant; if the labourer is permanently or temporarily disabled or contracts a serious illness in India the company will bear the medical expenditure.

The Ministry has already been in touch with several prominent hospitals in the country where the labourers would be treated and the insurance company would directly pay the hospital the expenses incurred. As it is, the Labour Ministry has recommended amendments in the Emigration Act to check exploitation and provide social security to the migrant labourers. The Emigration Act amendment Bill, 2000, which the Government hopes to pass in the monsoon session, is pending with the standing committee.

Indian officials will soon visit other countries, where the Indian labourers are employed, to study their working conditions and suggest means to prevent exploitation. Indian embassies and emigration agencies too have been asked to provide inputs.

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