Gig worker insurance
Who are Gig Workers and why do they need protection?
Gig workers perform short-term, flexible jobs—like food delivery, ride-hailing, freelancing, or household services. India had 7.7 million gig workers in 2022, expected to grow to 23.5 million by 2030.
They often lack job security, formal contracts, or social benefits. This makes them vulnerable to:
- Income loss due to injury or illness
- No retirement savings or maternity support
- No insurance cover for accidents on the job
This segment has grown tremendously and become vital to India’s digital economy but remains outside the traditional social safety net.
What does India currently have?
India lacks a national framework for gig worker insurance. However, the central government’s Social Security Code, 2020 acknowledges gig and platform workers as distinct employment categories, allowing for:
- Voluntary registration
- Access to social security schemes (when created)
Some state-level efforts include:
- Telangana Gig and Platform Workers (Registration, Social Security, and Welfare) Bill, 2025
- Rajasthan’s proposal for a welfare fund for gig workers
- Karnataka’s Gig Workers’ Bill (proposed)
No national level scheme for health, accident, or unemployment insurance for gig workers exists yet.
Telangana’s Draft Bill
Telangana recently proposed the “Gig and Platform Workers (Registration, Social Security and Welfare) Bill, 2025”, which includes:
- Legal recognition of gig workers
- Online registry and digital ID for gig workers
- Welfare Board with representatives from workers, platforms, and government
- Welfare Fund: To be financed through contributions from the state and platforms
- Mandatory accident and health insurance
This is one of India’s most comprehensive drafts aimed at protecting gig workers.
The Singapore model: What can we learn?
- Singapore passed the Platform Workers Bill in September 2023, effective Jan 1, 2025.
- Covers over 70,000 delivery and ride-hailing workers.
- Includes mandatory work injury insurance, enhanced pension contributions, and worker representation.
- Introduces a new employment category: not full-time employees, but eligible for key protections.
- Platform companies must contribute 3.5% of earnings to CPF (Central Provident Fund) initially.
- Workers will match contributions, supported initially by government subsidies.
India’s progress and gaps
Some key differences between India’s model and that of Singapore’s are:
- Singapore ensures enforceable benefits, India is still in draft stage.
- National vs. state-level implementation
- Singapore has addressed cost-sharing and portability concerns; India has yet to clarify.
| Feature | India (Draft Stage) | Singapore (2025) |
| Legal Recognition | Yes | Yes |
| Enforcement | State-level | National policy |
| Mandatory Contributions | No | Yes (CPF contributions) |
| Accident Insurance | Proposed | Mandatory |
| Health Benefits | Proposed | Covered under CPF |
| Portability | Not defined | Ensured |
India needs a unified national policy with mandatory participation, and draw lessons from Singapore’s integration of gig work into social security frameworks.
Challenges in implementing Gig Worker insurance in India
- Fragmented workforce:
- Gig workers often work for multiple platforms
- Difficult to track contributions and claims
- Funding question:
- Lack of clarity on who pays: workers, platforms, or government?
- Need for a central, contributory fund
- Platform resistance:
- Platforms argue mandatory contributions increase operational burden
- Awareness and access:
- Many gig workers are unaware of existing rights or claims processes
- Lack of vision:
- Lack of coordination between central and state efforts
Can private insurers contribute?
Private insurance companies in India can be a powerful ally in insuring gig workers:
- Micro-insurance offerings tailored for daily-wage or flexible workers
- Partnerships with platforms (e.g. Zomato, Swiggy, Urban Company) for bundled accident/health covers
- Usage-based premiums linked to activity level or income
- Digital claims processing and mobile-first interface to reduce barriers
With regulatory guidance, insurers can innovate in this underserved segment and help extend universal risk protection.
What India must do
India must act fast to create a safety net for its gig workforce:
- Enact a national-level Gig Worker Protection Act
- Create a centralised Welfare Fund with platform and government contributions
- Make accident and health insurance mandatory
- Introduce portability of benefits across jobs and platforms
- Build digital infrastructure for gig worker registration, claims, and support
Singapore’s model provides an effective roadmap. India’s growing digital economy deserves an equally strong social foundation.
insurancepe believes gig workers deserve the same protection as all workers and employees. We support inclusive insurance solutions to build a safer, fairer future for India’s workforce.
This blog post is brought to you by the minds at insurancepe!
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