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Pension scheme for agriculture workers launched

India is making a small start to bring agricultural workers under a pension scheme launched in July by state-owned Life Insurance Corporation.

Agricultural labour constituted over 60 per cent of the work force in the country during 1999-2000 as against 65 per cent during 1993-94 according to the National Sample Survey Organisation. With no social security to fall back upon, most of the unorganised workers fall into debt trap or have to depend on their children during their old age.

In case of accident leading to being laid off work either permanently or temporarily, they have nothing to fall back upon to support their family.

The new LIC scheme tries to address these needs, Minister of State for Labour and Employment Muni Lall stated in Parliament on Monday.

The 'Krishi Shramik Samajik Suraksha Yojana -2001' or social security scheme for agricultural workers is being implemented in 50 districts of the country in the first phase. A key factor is that groups of 20 people would have to be formed to participate in the scheme that offers wider benefit on the lines offered to organised sector workers.

The process of identification of districts, with at least one in every state, has started, Lall said.

"Keeping in view the performance of the scheme during the first phase and the availability of funds, the scheme will be extended to more districts."

Under the new scheme, the government would contribute Rs 2 for every one rupee the worker would have to pay per day as premium from the age of 18 to 50 years to be eligible for benefits like life and accident insurance, pension and superannuation.

The pension benefits would begin at 60 years of age, while in case of accident and resulting disability he would be eligible for a lump sum payment of between Rs 25,000 and Rs 50,000.

The scheme would cover people involved in cultivation, raising of livestock, beekeeping and poultry farming, and any activity related with farm operation.

The Insurance Regulatory Development Authority which is overseeing the entry of private and foreign players in the Indian insurance and pension market, has set up an expert group to chalk out the blueprint for pension reforms in the unorganised sector. The report is expected by October.

Indo-Asian News Service

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