To give a helping hand to Indian expatriates in their twilight years, the government of the Indian state of Kerala is launching a savings scheme which will entitle them to pension, insurance cover. It will also cover repatriation of dead body and tickets fare of a relative. The scheme will be implemented initially in United Arab Emirates (UAE) and later on expanded in other Gulf Co-operation Council (GCC) countries.
Kerala State Financial Enterprises (KSFE), a non-banking company fully-owned by the Kerala government, will issue the Pravasi Chitty scheme. It is expected to be launched in the UAE next month, top government officials from the state have revealed. The scheme will be rolled out later in other GCC countries as the government targets at least 100,000 subscribers in the first year, reports Khaleej Times.
In this connection, Kerala Chief Minister Pinarayi Vijayan and Finance Minister Dr TM Thomas Issac are set for a visit to the UAE for the implementation of the initiative.
The funds collected by KSFE will be invested in bonds issued by Kerala Infrastructure Investment Fund Board (KIIFB), which is a government-owned financial institution to mobilise funds for infrastructure development.
The scheme will be an investment for the non-resident Keralites once they return to their motherland
TP Ramakrishnan, Kerala Minister for Labour, said, “The scheme is a boon for expats as it's very safe and secure. It's no one person or institution, but the government is behind this.”
A delegation from Kerala is on a short visit to the UAE to create awareness about the new scheme. The state government expects to raise INR100billion (USD1.5 billion) from expats through 'Pravasi Chitty' scheme.
Peelipose Thomas, KSFE chairman, said, “By enrolling into this scheme, expats will receive many benefits - insurance, pension etc. All process can be done online and the logistics are being set in place this month. A 24X7 office will soon be operating in the state capital, Thiruvananthapuram.”
The insurance cover is in partnership with Life Insurance Corporation. On death of a subscriber, the payments will be completed by the insurance company. It will also cover repatriation of dead body and tickets fare of a relative. If a subscriber invests in pension scheme, he will get regular benefits on turning 60.