Telangana Offers ₹1 Crore Insurance Cover to Government Employees, Pensioners

Telangana Deputy Chief Minister Mallu Bhatti Vikramarka has said the state government’s ₹1 crore insurance cover for government employees, contract and outsourced personnel, and pensioners is the first such initiative in the country. Speaking in the Legislative Assembly on Thursday, he said the scheme has been introduced to protect families from financial distress in the event of an employee’s untimely death.

Bhatti Vikramarka said the government has worked with banks to implement the scheme without creating any additional financial burden on either the state exchequer or employees. Since salaries of government staff are credited through banks, the government held discussions with the institutions and sought their cooperation in extending insurance protection to their account-holding employees.

As part of the arrangement, banks have also been encouraged to bear the insurance premium on behalf of employees wherever required. This model, the Deputy Chief Minister said, allows employees and their families to receive substantial financial protection without having to separately shoulder the cost of the insurance.

The initiative was not introduced across the entire government workforce at once. It was first launched for Singareni Collieries employees, before being expanded to personnel working with electricity distribution companies, or DISCOMs, and later extended to other categories of government staff.

According to Bhatti Vikramarka, the insurance scheme has been in force for Singareni employees since February 2024. From June 2026, the government extended the coverage to all government employees across Telangana, significantly widening the number of beneficiaries.

The scheme now covers approximately 13 lakh people statewide, making it one of the largest employee-focused insurance initiatives in the state. The beneficiary base includes 2,72,600 pensioners and 5,18,273 regular employees. Another 5,00,158 personnel from various categories, including temporary, outsourced, contract, multi-purpose and daily-wage workers, are also covered.

The Deputy Chief Minister said the scheme is aimed at ensuring that the death of an employee does not leave the family struggling to meet its financial responsibilities. By using the existing banking network to provide insurance protection, the government has sought to create an additional financial safety net for employees and pensioners while keeping the scheme free from a direct financial burden on them.