Insurance scheme for powerloom workers fails to takeoff

The Central government-sponsored group insurance scheme for the workers of the decentralised powerloom sector, has failed to win the support of the Surat textile workers. Of an estimated 4 lakh powerloom workers in Surat, only less than 4,000 have opted for the scheme.

"This is an excellent scheme, and it is difficult to understand why it has got such poor response," M N Mishra, assistant director, Powerloom Service Centre, A K Road, told Business Standard.

"Surat is one of the biggest centres of textile industry in the country, and we were expecting it to be a huge success, but somehow the scheme has not taken off."

"Powerloom workers mostly live below the poverty line. This scheme was started by the Central government to provide social security to such workers. This would have gone a long way in improving their living conditions and productivity. The workers are required to pay an annual premium of just Rs 40 for the scheme, but they are simply not getting attracted to it," Mishra said.

"We are trying our best to create awareness about the scheme among powerloom workers, but the desired result is not there. In view of this, we have started talking directly to powerloom unit owners, asking them to motivate their workers to opt for the scheme, which would ultimately also benefit them. We have got favourable response from many unit owners, and are hopeful that the number of workers opting for the scheme, will increase significantly in the coming months," Mishra added.

The scheme was launched in June 2003 by the Centre. Powerloom workers and self-employed weavers, having up to four looms, who are below or marginally above the poverty line, and in the age group of 18 to 59, are eligible for this scheme.

The scheme is known as Janashree Bima Yojana (JBY). It's annual premium is Rs 200. The workers, however, have to pay only forty rupees, as the remaining is contributed by the central government.

The benefits of the scheme include Rs 20,000 for death, Rs 50,000 for accidental death, Rs 50,000 for permanent disability due to accident and Rs 25,000 for partial permanent disability.

The workers are also entitled for the additional benefit of scholarships under Shiksha Sahayog Yojana, ie. Rs 300 per quarter for each child (maximum of two) studying in Class IX to XII.

The government has also implemented the Add on Group Insurance Scheme, wherein workers are required to pay annual premium of Rs. 90 (government contributes Rs. 180). Rs. 30,000 is paid to the nominee in case of natural or accidental death.

The workers are free to join either or both these insurance schemes.