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Group Insurance Scheme for Powerloom Workers

Group Insurance Scheme for Powerloom Workers

Group Insurance Scheme for Powerloom Workers

The Powerloom sector is one of the mainstays of the Textile Industry and brings a major source of income to the nation. The powerloom sector provides employment to more than 7 million workers, and the number of shuttles less looms has increased to 50,000 covering about 35,000 looms working under this decentralised sector. In order to provide the best solution for the shortcomings faced by the powerloom weavers, the Government of India has introduced the Group Insurance Scheme in association with the Life Insurance Corporation of India.


The Powerloom sector largely depends on the population that performs the occupation. The scheme targets on helping the family of deceased weavers by compensating for their death and disabilities. With this objective, the scheme provides insurance cover to the powerloom weavers in case of their,


– Natural death due to the age factor

– Accidental death that occurs during the work,

– Partial and permanent disability caused due to accident.

Features of the Scheme

The Group Insurance Scheme provides the premium to benefit the powerloom weavers as listed below:

  • A sum of Rs.60,000 is paid for the nominee in case of natural death
  • If the powerloom weaver dies due to accident and is affected with partial/complete disability, the premium amount is allocated as listed below:
  • An amount of Rs.1,50,000 is paid to the weaver’s nominee, in case of their accidental death.
  • A sum of Rs.1,50,000 is paid to the weaver’s nominee in case of permanent disability due to an accident.
  • A total amount of Rs.75,000 is paid to the weaver’s nominee due to partial disability due to an accident.

Added Subsidies

In addition to the above-said benefits, the scheme also supports with the assistance of Rs.600 per child under the scheme Shiksha Sahayog Yojana (SSY). The powerloom worker and the member of the scheme should follow the procedure to acquire the benefits,

  • The child should fill in the application form available with the Nodal Agency and submit back to them.
  • The list of submitted applications is then sent to the LIC (P&GS) Unit for the scholarship assistance.
  • The respective Nodal Agency holds the responsibility to shortlist the beneficiary students and disburses the scholarship.
  • An account payee cheque in the name of Nodal Agency is issued by LIC with the list of students who passed the eligibility criteria.

Premium Amount Allotted Under The Scheme

The beneficiaries are liable for a minimum annual premium of Rs.470 per person with a break-up as follows:

  • Out of the premium amount of Rs.470, a sum of Rs.290 is incurred by the Government of India.
  • Out of the premium amount of Rs.470, a sum of Rs.80 is incurred by the Worker or the Weaver
  • Out of the premium amount of Rs.470, a sum of Rs.100 is incurred by the Social Security Fund.

Monitoring and Evaluation

  • All the monitoring and the execution activities are carried out by the Textile Commissioner.
  • The Textile Commissioner should send the Monthly Product and Financial Progress Report to the Ministry of Textiles.
  • Independent Agency reviews and evaluates the performance of the Scheme.

Eligibility Criteria

To avail the benefits stated in the scheme, the members of the scheme should meet the following conditions:

  • The powerloom weavers who are applying for the claim should be between the age group of 18 and 59
  • The scheme is eligible for all types of the Powerloom weavers irrespective of their Below Poverty Line (BPL) and Above Poverty Line (APL) status.
  • The scheme endorses not only the powerloom workers, instead considers all other allied preweaving and preparatory activities pertaining to Powerloom.
  • Self-employed Weavers with not more than four looms will also be eligible under the scheme of benefits.
  • The premium coverage is for a year, and if needed, the members can renew until he/she attains 59 years of age.
  • The scheme benefits both the applicant and his/her spouse.

Supporting Documents

The scheme is implemented with the joint effort of LIC and the Office of Textile Commissioner. The applicants should submit the following evident documents to the LIC through their respective Nodal Agency while applying for the benefits under the scheme:

  • Death certificate/post-mortem examination report on account of death of the beneficiary
  • FIR copy in case of an accident
  • Medical certificate/discharge certificate in case of partial/complete disability
  • On submission of the relevant documents, the nodal agency forwards the application and the documents to the LIC agency.
  • The LIC agency processes the application and settles the claim by transferring the NEFT/RTGS/Account Payee to the beneficiary and intimates the concerned nodal agency about the progress.

Responsibilities of the Nodal Agency

The Regional Offices of Textile Commissioner acts as a nodal agency for the execution of the scheme in every state except in the state of Karnataka. The Karnataka State Textile Infrastructure Development Corporation Ltd. (KSTIDC), Bengaluru, acts as a nodal agency for the state. The responsibilities of the agencies include:

  • Creating awareness on the benefits of the scheme to the powerloom weavers
  • Registering as many powerloom weavers as possible
  • Assisting them in filing the application forms
  • Channelising the powerloom weavers through the respective Powerloom Service Centers (PSCs) and covering all the major powerloom clusters in the country.
  • Collecting the premium amount of the beneficiaries and forwarding it along with the applications to the Regional Offices/KSTIDC before 25th of every month to the LIC in the form of Demand Drafts.
  • Compiling all the reports and information about the applicants, including the premium amount paid to the beneficiary, as one group and submit it to the respective ROs before the last working day of every month.
  • Holding responsibility to deliver the premium amount to the beneficiaries in the stipulated time and guaranteeing them against any inconveniences.

Functions of LIC

LIC is the responsible agency in disbursing the funds to the beneficiaries, and their other duties include,

  • Processing the applications submitted by the ROs/KSTIDC and issuing the master policy for the following month
  • Formulating and issuing 12 Master Policies a year to ROs/KSTIDC to the proper functioning of the scheme.

Other Terms and Conditions

  • The premium once paid by the beneficiaries shall not be refunded on any account.
  • The insurance cover will be terminated automatically in the event of non-payment of the insurance premium for the next year. However, the beneficiaries can rejoin the scheme after the repayment of the dues.
  • If the powerloom weaver changes their mode of employment during the period of insurance cover, he/she shall intimate the agency at the earliest.
  • The Government of India releases the fund to the Office of the Textile Commissioner depending upon the number of weavers enrolled during every month. Thus it is important for the weavers to register in their respective areas to obtain their claims.
  • A minimum of Rs.10 per worked is detected for the charges towards administration, marketing and publicity of the scheme, which may be modified from time to time.