The Government of India launched the Bunkar Bima Yojana to give insurance cover to handloom weavers in association with the Life Insurance Corporation of India (LIC). Under this scheme, weavers of all communities are insured against natural death, accidental death, and partial or permanent disability caused by an accident. LIC administers the scheme, and the handloom authority of the State finalises the insurance coverage.

Eligibility criteria

A weaver who wants to be insured under this scheme must meet the following conditions.

• The weaver must earn at least 50% of his or her income from handloom weaving.
• All weavers between 18 and 59 years of age may apply, including minorities, women weavers and weavers of the North Eastern Region.
• Weavers belonging to State Handloom Development Corporations, Apex or Primary Handloom Weavers' Cooperative Societies are covered. Weavers outside cooperatives are also covered if they give an eligibility certificate from the State Directorate of Handlooms.
• The State Director in charge of Handlooms checks the eligibility of the weavers to be covered under this scheme.
• The State Director and LIC make sure that women weavers, weavers of minorities and weavers of the North Eastern States (Arunachal Pradesh, Assam, Nagaland, Tripura, Manipur, Meghalaya, Mizoram and Sikkim) are adequately represented.

Features of the insurance cover

Mahatma Gandhi Bunkar Bima Yojana gives the following insurance cover to handloom weavers.

• On the natural death of the member, a sum assured of ₹60,000 is paid to the nominee.
• On accidental death or total permanent disability, a sum assured of ₹1,50,000 is paid. For partial disability, the sum assured is ₹75,000.

Premium for the insurance cover

The annual premium of ₹470 per applicant is shared as follows: