Nepal has formally recognised migration of its countrymen to India for employment purpose as "foreign employment" and bring them under the insurance coverage for the first time.

The government decided to give equal recognition to the employment in India as in other countries such as Gulf countries and Malaysia, news agency quoted Prime Minister Puspa Kamal Dahal "Prachanda" as saying on Tuesday.

"Now, people leaving for employment in India will also get insurance coverage," Prachanda said.

There is no official data about the number of Nepali working in India but around two million persons are believed to have been living there.

After the government's recognition, Nepali migrant workers in India will be entitled to receive insurance coverage up to $12,812 for critical illness and life insurance.

The Prime Minister said the insurance coverage of migrant Nepali workers in India will start from February 12.