Kerala launches 'Rakshakavacham' accident insurance scheme for private sector workers

Thiruvananthapuram: Kerala Minister V Sivankutty on Tuesday launched 'Rakshakavacham', a new accident insurance scheme aimed at providing financial security to private sector workers in the state.

Describing it as a "major labour welfare initiative", Sivankutty said the scheme would offer crucial protection to workers and their families during times of crisis.

Inaugurating the scheme here, he said 'Rakshakavacham' would provide protection and assurance to lakhs of private sector workers, describing the labour force as the backbone of Kerala's development.


'Rakshakavacham' means "shield of protection".

The state labour minister said the government had earlier implemented the Wage Security Scheme to ensure timely payment of wages, and at present, over 3.65 lakh establishments and more than 13 lakh workers are covered under the system.

"Beyond wage security, the government felt the need to support the family of a worker during times of crisis. It was from this concern that the 'Rakshakavacham' insurance scheme was conceived," the minister said.

The scheme is a group personal accident insurance programme implemented through the Comprehensive Health Insurance Agency of Kerala (CHIAK) for workers employed in establishments registered under the Wage Security Scheme.

CHIAK is the nodal agency for implementing public health insurance schemes in the state.

In the event of accidental death, whether at the workplace or otherwise, the family of the deceased worker will receive 5 lakh rupees as immediate financial assistance.

The amount will be provided in addition to benefits available under the Workmen's Compensation Act, Sivankutty said.

He added that with an annual contribution of 150 rupees, the government aims to extend the safety cover to around 25 lakh workers.

Considering the importance of the scheme, 30 lakh rupees have been allocated for it in the 2025-26 state budget.

The minister noted that accidents involving private sector workers often push families into debt and poverty, and said the assistance under the scheme would offer significant relief and help them recover.

Registration for the scheme will be carried out through CHIAK with the support of the state Labour Department. In the event of death, applications can be submitted to the nodal agency's district officer along with the death certificate, FIR and legal heir certificate.

Officials have been instructed to verify eligibility and ensure speedy disbursement of assistance, he said, appealing to employers to enrol their workers under the scheme.