The Karnataka government has notified a Rs 4 lakh insurance cover for gig workers, which was announced in the state budget.
According to an order dated September 8, the 'Karnataka State Gig Workers Insurance Scheme' will be implemented through the Karnataka State Unorganised Workers’ Social Security Board. This scheme will provide coverage for both full-time and part-time workers in food and grocery delivery apps, as well as courier platforms. The Rs 4 lakh insurance cover includes Rs 2 lakh for life insurance and Rs 2 lakh for accidental insurance.
Also, read: Karnataka budget - government announces Rs 4 lakh insurance cover for gig workers
The state government will bear the expenses, however, details about the scheme's funding have not been revealed yet. Karnataka labour minister Santosh Lad has recently proposed imposing a 5 percent cess on newly-registered vehicles to support the welfare of informal and gig workers in the state.
Read more: Karnataka labour minister proposes 5% cess on vehicles to support informal and gig workers
Under the scheme, hospital expenses of up to Rs 1 lakh will be reimbursed, and benefits will apply in cases of accidents on duty and off duty, but only for active workers. They can submit applications within one year of the accident or death.
While the state government doesn't have data on gig workers, NITI Aayog's 2022 data indicates their number to be around 2.33 lakh in Karnataka.
Gig workers aged between 18 and 60, those not falling under the tax bracket, and individuals not currently availing of PF/ESI benefits are eligible for the insurance. Anyone who has been working as a gig worker with any online food delivery or e-commerce company for at least one year will be eligible.
As per the order, gig workers registered on the government’s official web portal will benefit from this initiative. Legal heirs of the beneficiaries and siblings of unmarried workers are also eligible for compensation. They must apply directly on the Seva Sindhu portal, submitting the necessary documents, including the e-labour identity card number.
The order stated that gig workers under the influence of alcohol or drugs on the job, leading to an accident or death, will not be eligible for scheme benefits. Further, the worker's family cannot claim benefits in the event of the gig worker's suicide, intentional harm to others, or accidents caused by mental instability, it said.
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Rajasthan plans online surcharge for gig workers' welfare fund
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