Sibal proposes insurance cover, group housing for 6 million school teachers

Union minister for human resource development Kapil Sibal today proposed health insurance and life insurance cover as also a group housing scheme for the 6 million school teachers in the country.

The minister was addressing a meeting of the National Foundation for Teachers Welfare, in New Delhi today.

While the two insurance schemes will require financial contribution by the centre, the states and the teachers, the group housing scheme will be administered at the central level but will not require financial contribution from the centre or the state governments, he said.

The health and life insurance schemes are expected to cost less premium wise, compared to individual schemes or even schemes run at the state level, due to the economics of scale.

The life insurance cover would guarantee a minimum of about Rs5 lakh on retirement and Rs2 lakh on death during service.

The health cover, limited to hospitalisation of the teacher, spouse, two children and parents, is being worked on two options, either on a maximum cover of Rs1.25 lakh, which would mean lesser premium and another option of cover of Rs3 lakh, which would mean a higher premium.

The group housing scheme is being envisaged to be centrally administered through a portal, with construction to be done by NBCC, land to be bought at institutional rates and group housing societies to be formed by teachers. Thus, while there will be no cost to the government, the teachers will be able to get quality housing at lesser rates without much struggle or fear of being cheated.

State education ministers also welcomed the proposals, but said they would communicate formal approval after discussing it with their finance ministers.