One million registered Afghan and Iraqi refugees in Iran can now benefit from expanded health insurance under a new United Nations-backed initiative that subsidizes the cost.

Under the scheme, each refugee will pay a subsidized rate of $16 per year to Alborz Insurance, or 58 per cent of the actual cost of the insurance premium, with the UN High Commissioner for Refugees (UNHCR) paying for the rest. UNHCR will pay 100 per cent of the premium for vulnerable refugee groups.

To date, the refugees have only been covered for kidney failure and the genetic blood disorders of haemophilia and thalassemia, while also enjoying access to primary health care. Refugees holding the new health insurance cards under the agreement between UNHCR, the Government and Alborz, will now benefit from a wide range of services, including hospital treatment, ambulance services and natal care.

"It's a ground-breaking scheme," UNHCR representative in Iran Bernie Doyle said in an agency news release issued today. "Refugees without insurance coverage had found it impossible to pay for anything other than the most basic health care, jeopardizing their long-term health prospects and also their ability to work and sustain themselves."

For Afghan refugee Gholam Reza, who fled to Iran over 30 years ago, joining the insurance scheme will mean getting treatment for his slipped disc, a problem that has been afflicting him for years. "I have not been able to work for quite a while now," he said. "My wife and children are worried all the time about how to survive."

Afghan refugees in Iran are allowed to seek employment. Most work in low-paid occupations such as construction and agriculture.

Mr. Reza seemed happier, if a bit apprehensive, after getting his card. "This is a new thing and we are still not sure how it will work. We are just hopeful," Mr. Reza told UNHCR. "I hope this scheme will be good for refugees," he said.

The insurance deal complements UNHCR"s existing health interventions in Iran, where it helps ensure that refugees get free access to primary health care.