SHANGHAI, May 31 -- Disabled people living in the city's downtown core who are unable to find work because of their handicap will be provided free medical insurance starting in July, the municipal government announced yesterday.

The insurance will benefit about 35,000 people who are seriously handicapped and unemployed, said government spokeswoman Jiao Yang.

Disabled people over the age of 16 can apply for the insurance with their disabled certificate, identity card and residence booklet at any branch of the Shanghai Disabled Persons' Federation.

"The federation will estimate his or her physical condition, and write out a certificate proving he or she has not enjoyed any medical insurance before," said Jiao.

The insurance can be used at community hospitals around the city or larger hospitals if smaller clinics can't treat a patient. It will cover 50 percent of the cost of any outpatient or emergency room service and 70 percent of treatment during a hospital stay.

"The federation's district branches will also establish serious disease fund for disabled people, that provides 200 yuan (US$26) for each person every year," said Jiao.

Two-thirds of the funding will be covered by the federation, while the rest will be paid by the Shanghai Civil Affairs Bureau.