Kerala Raises PSC Age Limit to 40, Approves Major Disaster Insurance Scheme

The Cabinet decided to increase the maximum age limit for applying to the Kerala Public Service Commission (PSC) by four years. The general category limit has been raised from 36 to 40 years, with proportional relaxation extended to all other eligible categories.

To ensure financial protection for households affected by natural calamities, the government approved a state-level group insurance mechanism to be implemented through the State Insurance Department.

The decision follows recommendations of a committee led by Planning Board member Ravi Raman, which studied suitable climate risk-transfer options for Kerala.

The Cabinet accepted proposals for a hybrid model comprising- Parametric Insurance- Compensation to the state will be triggered automatically when predefined thresholds of rainfall, floods, or windspeed are exceeded. No individual house damage assessment required. Funds will first reach the government and be disbursed as per an SOP for relief and rehabilitation. Coverage: Based on the average disaster relief expenditure of the last decade. Duration: 5 years. Premium: 3%-8% of total coverage (e.g., Rs15-40 crore annually for Rs 500 crore coverage).

Indemnity Insurance for BPL Families- Compensation will be provided directly to BPL households for actual losses to houses, household items, and temporary rental support. Local bodies will collect structural and household data; random verification by insurers permitted. Coverage per house: Up to Rs 10 lakh. Premium: Rs 250 per house; for 32.3 lakh BPL families, total annual premium is Rs 80.75 crore. Future provision: Mandatory coverage for non-BPL households may be considered by linking it to building permits or property registration.

Annual Financial Commitment- Parametric model: Rs15-40 crore, Indemnity model: Rs80.75 crore; Total estimated annual outlay: Rs 120.75 crore.

The amount will be shared equally between the State Consolidated Fund and the Chief Minister's Distress Relief Fund. Departments including Finance, Revenue, Disaster Management, and Rebuild Kerala Initiative will finalise the detailed framework.

The Cabinet also approved in principle the JB Koshy Commission report and decided to publish it officially. Apart from previously accepted recommendations, 32 additional decisions were taken on Tuesday.

Notably, the government ruled that the year 1947 should no longer be considered the benchmark for issuing Latin Catholic community certificates. Instead, certificates issued by the respective bishops may be used as supportive documents, with the final verification carried out through local inquiries by village officers.

- ANI