Karnataka Govt rolls out health, accident insurance to gig economy workers

More than two lakh platform-based gig economy workers in the state, who are known to work under tight delivery deadlines putting their safety at risk, will now be eligible for government-funded life and accidental insurance with the state government rolling out “Karnataka State Gig Workers Insurance” scheme. 

In his budget presentation this year, Chief Minister Siddaramaiah had announced that the state government would ensure Rs 4 lakh insurance to gig workers. Accordingly, the government has rolled out the insurance where a worker will be eligible for Rs 2 lakh life insurance and an equal amount of accidental insurance. The government plans to bear the entire expense from its end. 

Delivery personnel employed with food and grocery delivery apps, courier platforms and the like, will be eligible for the scheme. Drivers of private transport apps will not qualify for this as the government runs a separate insurance scheme meant for commercial drivers, sources in the Labour department specified. 

The Karnataka State Unorganised Workers’ Social Security Board will be the nodal agency for its implementation as the gig workers are categorised under unorganised labour sector.  Based on NITI Ayog 2022 data, the government has pegged the number of gig workers in the state at 2.33 lakh. It is estimated that there are 80,000 workers in Bengaluru alone. “However, we believe there are far more workers than this number,” an official in the Labour department said. 

A government order in this regard stated that it was the government’s responsibility to extend aid to the families of these workers in case of their death or disability owing to an accident. 

Workers interested in availing of the insurance can apply on the Seva Sindhu portal. “Once they apply, they will be registered as part of a formal database and we will get the exact number of workers in the state,” the official added. 

According to the government guidelines, gig workers who are between 18 and 60 years, those who do not fall under the tax bracket and those who are not at present availing of either PF or ESI benefits are eligible for the insurance. 

As per the scheme terms, family members will be entitled for Rs 2 lakh life insurance in case of the employee’s death. In case of accidental death, they will get both life and accidental death insurance amounting to Rs 4 lakh. 

In addition, a worker is also eligible to claim a hospital reimbursement of Rs one lakh. The accident insurance covers accidents even while off duty, as long as the person is still working as a gig worker, the order stated. 

However, the insurance does not cover death by suicide or if the person is inebriated at the time of death, among other related specifications.