Why is it in the news?
- The Telangana government has sanctioned a group accidental insurance scheme for 64.35 lakh members of Self Help Groups (SHGs) across both urban and rural areas.
More about the news
- Each SHG member will be provided coverage of Rs 10 lakh in the event of accidental death, aiming to provide financial security to SHG members and their families.
- The Panchayat Raj and Rural Development department released Rs 96.35 crore to the Stree Nidhi Cooperative Federation Limited to facilitate the effective implementation of the insurance scheme.
- Additional approvals were granted to release Rs 50.41 crore in four installments for the creation of a risk fund specifically designated for women members of SHGs for the first year.
- The scheme extends risk coverage against loans acquired by SHGs from banks under the SHG linkage program. It covers a maximum of Rs 2 lakh outstanding loan per member in the event of their demise.
- The Stree Nidhi Cooperative Federation has been tasked with formulating and issuing operational guidelines for the seamless implementation of the insurance scheme, ensuring clarity and efficiency in its execution.
