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Government Insurance scheme for handloom weavers fails to generate interest

Last Updated: Sep 02, 2016 | 4266 Views

 

The Mahatma Gandhi Bunkar Bima Yojana (MGBBY) and Health Insurance Scheme (HIS) was launched by the Government for the welfare of the Handloom weaver’s. The aim was to cover 66,66,665 weavers during the period 2007-08 to 2011-12 including maximum renewal cases each year. All weavers, whether male or female, between the age group of 18 and 59 years are eligible.

 

In Uttarakhand, only 872 weavers have taken insurance from LIC under the MGBBY. This is a concern as there is not enough awareness created amongst the weavers in the remote areas of the state. The Uttarakhand government has asked the district officials to step up their efforts and to extend their reach.

 

The MGBBY is being implemented through the Life Insurance Corporation of India (LIC). The funding pattern and benefits are mentioned in the table below:

Premium Contribution

Amount

Weaver's contribution

Rs. 80/-

GOI Contribution

Rs. 150/-

LIC's contribution

Rs. 100/-

Total Premium Amount

Rs. 330/-

Benefits under the plan

Amount

Natural Death

Rs.60,000/-

Accidental Death

Rs.1,50,000/-

Total Disability

Rs.1,50,000/-

Partial Disability

Rs.75000/-

 

In addition to the above, under the MGBBY, a scholarship of Rs.300/- per quarter per child is paid to students studying in standard IX to XII for a maximum period of four years or till they complete XII standard, whichever event occurs earlier.  The benefit is restricted to two children of the member covered.

 

On the other hand the HIS scheme by ICICI Lombard has managed to get 3,122 weavers to buy the policy. Under this scheme, the weavers have to pay Rs.50/- yearly premium out of total premium of Rs. 988.30. In return, the weaver, spouse and two children are covered for pre-existing diseases and new diseases. The annual limit, per family on the claim amount is Rs.15,000/-

These attractive and beneficial insurance schemes however, have failed to achieve the desired number of applications from the weaver’s.

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