For the first time in the history of labour movement in Nepal, a distinct initiative has been pushed forward. Working on occupational safety and health since 1993, the General Federation of Nepalese Trade Union or GEFONT has now come to a stage of operating a distinct scheme of its own—Micro Health Insurance Scheme. The scheme was formally launched in Nepalgunj on 2 March 2004. Earlier, GEFONT had started its own health cooperative clinic. The Micro Health Insurance Scheme is a combination of the cooperative campaign and the Occupational Safety and Health campaign.  The workers of Banke district are the first beneficiaries.    GEFONT expects to cover 50,000 workers and their families in the coming years.

The scheme will pay for 50 per cent of the cost of treatment at the zonal hospital, 10 per cent of the cost of medicines and 50 per cent for the use of ambulance. For all other medical expenses, including check-up and consultation, child delivery, snake-bite, dog-bite, dental care, general medicine, surgery and tests (even for HIV), 100 per cent of the costs will be covered by the scheme. Separate Micro Health Insurance Scheme card for each member of a worker’s family will issued which will carry the photo of the head of the family and a photo of all the family members.

Altogether 400 rural agricultural workers from five villages and 100 workers from the Nepalgunj Municipality will be covered under the scheme.  Agreements with health service providers have been reached. The primary health service providers will be two local health centres. Secondary and tertiary care will be provided by the Bheri Zonal Hospital in Banke district.

A family with five members will have to contribute Rs 20 per month as premium in the case of agricultural workers and Rs 40 for non-agricultural workers. A family with six-seven members will be paying Rs 35 (agricultural workers) and Rs 60 (non-agricultural workers), a family of eight-ten, Rs 50 (agricultural workers) and Rs 90 (non-agricultural workers) and a family of more than ten members will pay Rs 60 (agricultural workers) and Rs 120 (non-agricultural workers).

Amid displacement of families, an aggravating unemployment and heavy economic deterioration in the country, the micro health insurance is expected to play a vital role for Nepal’s working population as an urgent social protection measure. The scheme is eagerly watched by other sectors as well. If GEFONT succeeds in Banke, it could bode well for thousands of working class families in the country.