Gem workers' insurance scheme fails to take off

The ambitious insurance scheme for over five lakh diamond polishers in Surat has failed to take off following disputes over premium payment and lukewarm response from the employees.

The novel scheme was launched recently by the Surat Diamond Association for providing financial security to workers of polishing units. Most of the workers are in the unorganised sector, without any benefits other than their wages.

According to the scheme, diamond polishers should pay a premium of Rs 225 a year to the Surat Diamond Association until they turn 50. In case of death of an insured worker, the association will pay Rs 1 lakh to the worker's family.

The cause of death of the insured worker will not be considered while disbursing the sum assured.

Of the five lakh diamond polishers in Surat, only around 7,500, or around 1.50 per cent, have opted for the scheme so far.

Polishers, traders and association members cite various reasons for the scheme's failure. Babubhai Jirawala, president of the Surat Ratnakalakaar Samiti (diamond polishers' association), said the scheme has failed due to a dispute over premium payment.

Jirawala said, "The polishers want the traders to pay the premium amount, while majority of the traders are not ready to do so. The traders want the polishers to pay the money. This dispute is a major reason behind the insurance scheme's failure."

"When polishers are not claiming any other benefits from their employers, it is difficult to understand why traders are refusing to pay the premium amount, which is not a big sum by any means. A few companies such as Lakshmi Diamonds and Shital Gems have agreed to pay the premium on behalf of the polishers and we hope other diamond traders will also follow this example," Jirawala said.

Nanubhai Vanani, president of the association, said the scheme did not evoke the expected response.

Vanani said, "Most of the people in the diamond industry, including traders, brokers and polishers, do not care about their future. For them, insurance is something unusual - something they have never given much thought about."

Vanani said, "The insurance scheme, which is more of a social security scheme, was introduced recently. So it is still a very new concept. It is very likely that several traders and polishers might not be fully aware of it. We are very confident that majority of the five lakh diamond polishers will go for the scheme in the coming few months."

Leading diamond merchant and former president of the association Pravin Nanavati said, "The scheme did not generate good response due to lack of awareness about it. Insurance is a must for everyone and polishers must seriously consider opting for the scheme."

Nanavati said, "There is a dispute over who pays the premium. Polishers do not want to pay, while traders are reluctant to pay the premium because polishers do not work with units on a permanent basis. A trader may premium for a worker for some time. Later the worker may quit that unit and join another trader. This is a major reason behind the scheme's failure."

"However, insurance is a must. All the disputes can be settled amicably through talks," Nanavati said.