Tamil Nadu government has announced the rollout of a free personal accident insurance scheme for gig workers.
The initiative, led by the Labour Welfare and Skill Development Department, aims to provide financial protection to workers engaged in platform-based services such as food delivery, ride-hailing, and courier operations—sectors where road accidents and occupational hazards are common.
The scheme will initially cover 50,000 registered gig workers in its first phase, with plans to expand coverage in subsequent stages.
The government has invited tenders to appoint an insurance provider, and the selected firm will offer policies with coverage of up to ₹5 lakh per person annually.
Gig Workers Social Security: Coverage Details and Compensation Structure
The insurance policy will offer full compensation in cases of accidental death or permanent disability.
It also includes specified payouts for partial impairments:
- 40% coverage for loss of all fingers
- 50% for loss of hearing
- 20% for loss of all toes
- Other permanent or partial disabilities will be assessed by certified medical professionals for appropriate compensation
The scheme is designed to be renewed annually, and the government will bear the entire premium cost.
Labour Commissioner S.A. Raman emphasized that gig workers often lack access to private insurance due to economic constraints, making this initiative a critical support mechanism.
Implementation and Tender Conditions
To ensure effective rollout, the appointed insurance operator must issue a minimum of 10,000 policies for the tender to remain valid.
The Tamil Nadu Platform-Based Gig Workers Welfare Board will act as the policyholder on behalf of the registered workers.
The policy will be valid for one year from the date of premium payment.
The government has sanctioned ₹66.95 lakh for the scheme’s implementation, which includes premium costs, administrative expenses, and outreach efforts.
The estimated premium per worker is ₹105 annually.
Challenges in Registration and Outreach
Despite the establishment of the welfare board and previous schemes such as two-wheeler assistance and AC waiting rooms, only around 10,000 gig workers have registered so far—far below the estimated 3 lakh workers in the state.
To address this gap, the Labour Department is actively engaging with platform operators like Swiggy, Zomato, and Rapido to raise awareness and facilitate registration.
Union representatives have pointed out logistical challenges in enrolling workers, citing long working hours and lack of rest spaces. S. Gesty, Secretary of the Tamil Nadu All Workers Trade Union, suggested that the government coordinate with companies to allow registration camps during off-hours or designated holidays.
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