Kerala Budget 2026-27 Introduces Comprehensive Insurance Scheme for School Children and Unorganised Workers
In a significant move to enhance social welfare, the Kerala Budget for the fiscal year 2026-27 has announced a new life and accident insurance scheme. This initiative, unveiled by Finance Minister K N Balagopal, aims to provide critical financial protection to two key segments of society: school children and workers in the unorganised labour sector.
Key Features of the Insurance Scheme
The scheme is designed to offer a safety net for those often left out of formal insurance systems. For school children, it will cover life and accident risks, ensuring that families are supported in times of unforeseen tragedies. Simultaneously, unorganised workers, who typically lack access to structured benefits, will receive similar coverage, helping to mitigate economic hardships from accidents or fatalities.
Implementation and Government Support
Finance Minister Balagopal emphasised that the scheme will be implemented jointly with the State Insurance Department. It will be bolstered by government aid, ensuring its sustainability and reach. This collaborative approach leverages state resources to extend protections to vulnerable groups, reflecting Kerala's commitment to inclusive development.
Broader Impact on Social Security
By including unorganised labour, the budget addresses a longstanding gap in India's social security framework. This move is expected to benefit millions of workers in sectors like agriculture, construction, and small-scale industries, who often face financial instability due to lack of insurance. For school children, it adds an extra layer of security, promoting a safer educational environment.
The announcement, made on 29 January 2026, underscores Kerala's proactive stance in welfare policies. As the state continues to prioritise health and safety, this insurance scheme could serve as a model for other regions aiming to strengthen their social safety nets.
