Khadi Karigar Janashree Bima Yojana for Khadi Artisans - (implemented through KVIC)

Organisation

MSME

Objective

A Group Insurance Scheme for khadi workers, namely, “Khadi Karigar Janashree Bima Yojana” was launched during X Five Year Plan through KVIC on 15th August 2003 By the Government of India (in the erstwhile Ministry of Small Scale Industries and Agro & Rural Industries), with LIC of India as insurers. This scheme, like other Group Insurance Schemes, does not have any terminal benefit for the beneficiaries as this is not a Life Insurance Scheme. The scheme provides only risk cover for death/disability and the worker is not entitled to get any returns on the premium paid by him or paid on his behalf by KVIC/khadi institutions, if he survives the entire period of insurance.

Eligibility

The Scheme covers spinners, weavers, pre-spinning artisans and post-weaving artisans engaged in the khadi sector.

Brief

This scheme was formulated by KVIC in association with the Life Insurance Corporation of India (LIC) with annual premium of Rs. 200/- per beneficiary. KVIC has been able to persuade the LIC to reduce the premium to Rs. 100/- with effect from the policy year 2005-06. The premium is shared as - Rs. 50/- by the Central Government Social Security Fund, Rs. 25/- by Khadi Institution and Rs. 12.50/- each by khadi artisan and KVIC. The compensation payable under this scheme, has also been increased by 50 per cent, i.e. Rs. 30,000/- in case of natural death, Rs. 75,000/- in case of accidental death, Rs. 75,000/- in case of full permanent disability due to accident, and Rs.37,500/- in case of part permanent disability due to accident.