Cashless health insurance scheme for street vendors

New Delhi: Street vendors will now enjoy the benefits of cashless-based health insurance scheme, the proposal for which was approved by the Government today.

The insurance scheme under the Rashtriya Swasthya Bima Yojana (RSBY) presently covers BPL families only.

The Union Cabinet today approved the proposal of the Ministry of Labour and Employment for extending RSBY to street vendors whose number according to a 2001 report is over 42 lakh.

The Government proposes to cover all the registered street vendors under RSBY by 2013-14, out of which 4.21 lakh are proposed to be covered in the current financial year, said an official release.

The premium for the insurance scheme will be paid by the Central and State Governments in the ratio of 75: 25. For the North Eastern States and Jammu and Kashmir, the expenditure would be shared in the ratio of 90: 10.

The total expenditure on the part of the Central Government during the current...year will be around Rs 20 crore.

The recurring expenditure after 2013-14 will be around Rs 200 crore annually, the release said.

Beneficiaries under RSBY are entitled to a cover of upto Rs 30,000 for most diseases that require hospitalisation.

The cover extends to five members of the family, which includes the head of the household, spouse and up to three dependents.

According to the Labour and Employment Ministry, till October 15 this year, 27 states were in the process of implementing the scheme.