The Karnataka government has introduced a new initiative to provide social security to gig workers by offering a free accidental and life insurance cover worth INR 4 lakh. Out of this total amount, INR 2 lakh will be allocated for life insurance, while the remaining INR 2 lakh will be for accidental insurance. The scheme aims to benefit gig workers in the unorganized sector, particularly those working for food delivery companies such as Zomato, Swiggy, and other ecommerce platforms.
Premium covered by the Karnataka government
The premium for the insurance coverage will be borne entirely by the Karnataka government. Chief Minister Siddaramaiah highlighted the government’s commitment to ensuring social security for gig workers employed as full-time or part-time delivery personnel in companies like Swiggy, Zomato, Amazon, and others.
Congress’ election promise and the gig economy in Karnataka
The announcement aligns with the Congress party’s election manifesto, which pledged to establish a ‘Gig Workers’ Welfare Board’ for Karnataka with an initial allotment of INR 3,000 crore. Congress emphasized the need for a transparent policy to outsource employment opportunities for gig workers in the state. The gig economy in Karnataka is expanding rapidly, with a projected increase from 7.7 million workers in 2020-21 to 23.5 million by 2029-30, according to NITI Aayog, the government think tank.
Challenges and protests faced by gig workers
While the gig economy offers employment opportunities, the rise in the number of gig workers has also led to protests demanding improved working conditions and higher wages. Events such as strikes by Blinkit delivery executives in the Delhi NCR region over a new payment structure and protests by Dunzo riders in Bengaluru regarding changes in login timings and incentives have highlighted the challenges faced by gig workers. A Fairwork report highlighted that Indian startups like Ola, Uber, and Dunzo ranked among the worst performers in providing suitable working conditions for gig workers.
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