Hyderabad, September 2026 : Telangana Deputy Chief Minister and Finance Minister Mallu Bhatti Vikramarka on Thursday said the state’s ₹1 crore insurance scheme for government employees, contract and outsourcing staff, and pensioners is the first of its kind in the country.
Speaking during Question Hour in the Legislative Assembly, Vikramarka said the scheme was introduced with the humanitarian objective of providing financial security to the families of employees who die unexpectedly and ensuring that they do not face financial hardship.
He said the scheme is being implemented in partnership with banks and does not impose any additional financial burden on either the state government or employees.
According to Vikramarka, the government has entered into agreements with 16 banks to provide insurance coverage to regular employees, pensioners, and contract and outsourcing personnel. A total of 12,91,056 people are covered under the scheme, including 5,18,293 regular employees, 5,00,158 temporary, outsourcing, contract and other workers, and 2,72,600 pensioners and family pensioners.
The Deputy Chief Minister said the ₹1 crore insurance initiative was initially introduced for employees of Singareni Collieries Company Limited. It was subsequently extended to employees of power distribution companies and other organisations before being expanded to cover government employees across Telangana.
He said the government negotiated with banks handling employees' salary accounts to implement the scheme without placing an additional financial burden on the exchequer. Since banks benefit from salary-account business, they agreed to support the insurance initiative, he added.
Vikramarka said 33 claims had been received from state government employees, of which 24 had already been settled. In the power sector, including SPDCL, NPDCL, TG Genco and Transco, 15 claims were received and all were settled, with payments exceeding ₹15 crore. Similarly, all 50 claims received from Singareni employees had been settled.
He said the government has made arrangements to ensure that the family of an employee who dies in an accident can receive benefits of up to ₹1.20 crore, including the ₹1 crore insurance cover and other applicable benefits.
The scheme also provides insurance coverage of up to ₹2 crore for accidents during air travel, while benefits of up to ₹10 lakh are available in cases of natural death, he said.
Vikramarka further said the Central government had studied Telangana's accident insurance model and that several other states had expressed interest in examining the initiative. Tamil Nadu has also implemented a similar scheme, he added.
Cashless Health Scheme for Employees and Pensioners
The Deputy Chief Minister also announced the implementation of a health card scheme for government employees and pensioners, aimed at providing cashless medical treatment.
He said the government had fulfilled a long-standing demand of employee unions for cashless healthcare facilities. The health card policy was finalised after consultations involving employees, union representatives, the Chief Secretary and relevant Principal Secretaries.
Under the scheme, employees and pensioners will have access to cashless treatment and CGHS package rates at empanelled healthcare facilities.
Vikramarka said the Telangana government has already allocated approximately ₹240 crore towards the health card scheme.
