Big budget move: Kerala announces accident insurance for school children

Thiruvananthapuram, Kerala: The second Pinarayi Vijayan government’s final budget introduced major welfare initiatives for healthcare and public safety, including accident insurance for schoolchildren and free emergency treatment for road accident victims.

Presenting the Budget in the State Assembly on Thursday, Finance Minister K.N. Balagopal announced an accident insurance scheme for students studying in Classes 1 to 12. The scheme is expected to cost ₹15 crore annually, with the amount allocated in the budget.

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Balagopal also announced further expansion of the MediSep medical insurance scheme for government employees. MediSep 2.0 will be launched from February 1, offering enhanced benefits and bringing more hospitals under its network.

A new medical insurance scheme on the MediSep model will be introduced for retired government employees. Similar insurance coverage will also be extended to workers in public sector undertakings and cooperative institutions.

Highlighting reforms in the Budget, FM Balagopal stated that Rs 3,820 crore has been allocated for the women's security welfare pension.

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"Rs 400 crore is allocated for the Chief Minister's 'Connect to Work' scholarship scheme and Rs 14,500 crore is allocated for disbursing welfare pensions for the year 2026-27," he said.

According to the Budget, a pay hike will be implemented as follows: Rs 1,000 for Anganwadi workers, Rs 500 for Anganwadi helpers, Rs 1,000 for pre-primary teachers, and a Rs 1,000 increase in the monthly honorarium of ASHA workers.

Further, a Rs 25 increase in daily wages for school mid-day meal workers and a Rs 1,000 increase in monthly wages for literacy promoters have been included in the Budget.