Kerala Budget 2026-27 announces life, accident insurance scheme for school children

Thiruvananthapuram: Members of Kerala's Green Army (Haritha Karma Sena), autorickshaw, taxi, and lottery workers, along with school children, will soon receive accident and life insurance coverage under new initiatives announced in Kerala’s 2026-27 budget.

Finance Minister K N Balagopal said the schemes, to be implemented jointly with the State Insurance Department and supported by government aid, will also cover workers in the unorganised labour sector, providing a wider safety net for those often excluded from formal insurance protections.

He said that the necessary arrangements, including earmarking Rs 15 crore, have been made for providing life or accident insurance coverage to students studying from class 1 to class 12th standard.

"Rs 15 crore is expected for the scheme per annum and the same amount is earmarked for this," the minister said.

The minister further said that a revamped version of Medisep -- the health insurance scheme for about 11 lakh government employees and pensioners in Kerala -- which provides cashless insurance services without any age and medical checkup barriage will come into effect from February 1 onwards.

The Medisep 2.0 will have more packages and hospitals, he said.

Additionally, an insurance scheme in the model of Medisep will be formulated for the employees and pensioners of public sector undertakings and co-operative institutions in the state, the minister said.

He also said that a health insurance scheme will be implemented at a very affordable premium for autorickshaw and taxi workers, who are members of the welfare board.

The minister further said that the government was also considering implementing a new health insurance scheme for the families who are outside the purview of Karunya Arogya Suraksha Scheme, which is providing free treatment to 42 lakh families of the state.

"This insurance scheme, which can be joined by paying a relatively small amount, will be implemented in the budget year itself. Rs 50 crore is earmarked in the budget for the scheme," he said.

Also, Rs 10 crore has been earmarked for the group insurance scheme for all fishermen in the state, the minister added.