TN’s gig workers to get life cover, e-bike subsidy
The initiative, announced by the Labour Department, also includes a Rs 4 crore subsidy scheme to help 2,000 gig workers purchase electric bikes.
Tamil Nadu government
CHENNAI: In a significant move to strengthen social security for gig workers, the Tamil Nadu government is on the lookout for insurance providers to extend group insurance coverage to 50,000 registered members of the state's Platform-Based Gig Workers' Welfare Board.
The initiative, announced by the Labour Department, also includes a Rs 4 crore subsidy scheme to help 2,000 gig workers purchase electric bikes.
The Labour Department's twin orders aim to materialise Finance Minister Thangam Thennarasu's Assembly announcements regarding group insurance, offering compensation in cases of accidental death and disability, and a subsidy of Rs 20,000 each for 2,000 registered gig workers to purchase new electric vehicles (e-scooters).
"There has been a lukewarm response from gig workers enrolling with the Welfare Board. Therefore, we have launched outreach campaigns to raise awareness about the available social security schemes and to encourage registration with the Board," said a senior bureaucrat, noting that just over 10,000 workers have enrolled with the Board to date. The estimated number of gig workers in the state stands at around five lakh.
Secretary of Labour Department K Veera Raghava Rao, in the order, stated that the government has accepted the proposal from the director of Labour and granted approval to introduce the group insurance scheme for gig workers. The government has also approved funding of Rs 66.95 lakh for the implementation of the group insurance scheme, and Rs 4 crore for the e-scooter subsidy.
An official noted that the director of Labour will initiate an open tender process to identify suitable insurance providers, in accordance with the Tamil Nadu Transparency in Tenders Act, 1998, and the Rules, 2000. The existing procedure of selecting the lowest annual quote will be followed for the scheme's renewal.
"The government determined an annual premium of Rs 52.50 lakh, excluding taxes and administrative costs, based on sample quotations from service providers," the official added, citing the order. The official further stated that the insurance scheme has been structured to provide Rs 5 lakh in compensation to the kin of gig workers in the event of accidental death, and Rs 2.5 lakh or Rs 1.25 lakh for cases of permanent disability or injuries caused by an accident, respectively.
