Karnataka Unveils Rs 400,000 Insurance Scheme for Gig Workers

New Delhi (Agency): Delivery workers laboring for e-commerce corporations, who fall under the ‘gig economy’, are set to receive an insurance package worth Rs four lakh, as declared by Chief Minister Siddaramaiah. The chief minister’s announcement came as part of his budget speech in the Legislative Assembly last Friday.

The proposed insurance arrangement, designed to bolster social security measures for gig workers, will be divided into two segments: Rs two lakh for life insurance and an additional Rs two lakh earmarked for accident coverage. Chief Minister Siddaramaiah, who also oversees the state’s financial affairs, assured that the full insurance premium would be shouldered by the state government.

Siddaramaiah clarified, “In order to provide social security to the ‘gig workers’ in the unorganised sector, ie, employed as full-time or part-time delivery personnel in e-commerce companies like Swiggy, Zomato, Amazon etc, insurance facility of total Rs four lakh will be provided…”

The welfare scheme, extending to registered beneficiaries and their dependents, will be implemented via the Karnataka Building and Other Construction Workers Welfare Board. It is expected to provide a safety net for thousands of gig workers, part of an evolving workforce that remains largely unprotected by traditional employment rights and benefits.

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