Govt readies higher insurance cover for handloom weavers

Government is working on plans to raise insurance cover for handloom weavers under the Mahatma Gandhi Bunkar Bima Yojana, with the finance ministry coordinating with departments to converge all such schemes from the next fiscal.
To a specific query whether the government has any plan to increase the cover for handloom weavers under the Mahatma Gandhi programme, Textiles Minister Smriti Irani replied in the affirmative.
"The Ministry of Finance is coordinating with the ministries concerned to converge all insurance schemes, including Mahatma Gandhi Bunkar Bima Yojana (MGBBY), Pradhan Mantri Jeevan Jyoti Bima Yojana (PMJJBY) and Pradhan Mantri Suraksha Bima Yojana (PMSBY), from the next financial year," Irani said in a written reply to the Lok Sabha.

Earlier last month, PTI had reported quoting sources that the textiles ministry has proposed increasing the insurance cover for handloom weavers, a sector that employs millions and has been one of the focus areas of the government for job creation.
According to estimates, out of 110 million people employed in the textile sector, more than 60 per cent are in handlooms.
MGBBY, the insurance scheme for coverage of handloom weavers, is being implemented by the Office of Development Commissioner for Handloom through LIC. Total premium of Rs 470 is shared as Rs 290 by the central government, Rs 80 as weaver's contribution and Rs 100 LIC's contribution.

The Mahatma Gandhi Bunkar Bima Yojana provides insurance cover to handloom weavers in case of natural and accidental death and total and partial disability.
Under the scheme, the government released Rs 16.67 crore in 2015-16, slightly higher than Rs 16.39 crore in 2014-15 when 5.74 lakh weavers were enrolled.