Medical insurance for 55 lakh beedi workers

New Delhi - Around 55 lakh people working in 'beedi' making  units across the country will get medical insurance benefits by 2013-14 under a proposal approved by the union cabinet Thursday.

According to a government statement, a beedi (leaf rolled cigarillo) worker  and his family (a unit of five) will be covered for a sum of Rs.30,000 under the Rashtriya Swasthya Bima Yojana (RSBY).

"Any claim beyond Rs.30,000 will be reimbursed directly by the related  welfare commissioner to the concerned empanelled hospital   through the existing procedure," the statement said.

The cabinet meeting, chaired by Prime Minister Manmohan Singh, decided to  extend the insurance cover to the beedi workers, with the government  spending an estimated Rs.311.25 crore on it.

"The state governments will identify and register the beedi workers. It is  proposed to cover 10 lakh workers in the current financial year and 100  percent of beedi workers by 2013-14," the statement said.