Life Insurance Scheme for Unorganised Sector Workers in Telangana

    The Government of Telangana has announced on 30th July, 2023 that it has plans to launch a free insurance scheme for unorganised sector workers on the lines of Rythu Bima.

    Who is an unorganized worker?

    The term unorganized worker has been defined under the Unorganized Workers’ Social Security Act, 2008, as a home based worker, self-employed worker or a wage worker in the unorganized sector and includes a worker in the organized sector who is not covered by any of the Acts mentioned in Schedule-II of Act i.e. the Employee’s Compensation Act, 1923 (3 of 1923), the Industrial Disputes Act, 1947 (14 of 1947), the Employees’ State Insurance Act, 1948 (34 of 1948), the Employees Provident Funds and Miscellaneous Provision Act, 1952 (19 of 1952), the Maternity Benefit Act, 1961 (53 of 1961) and the Payment of Gratuity Act, 1972 (39 of 1972).

    eShram portal:

    The Government of India has an eShram portal. The portal is used for the registration of Unorganized Workers across the Country. This portal has comprehensive National Database of Unorganized Workers (NDUW) of the country. There are over 38 Crore unorganized workers in the country. The registration is totally free for the workers.

    PRADHAN MANTRI JEEVAN JYOTI BIMA YOJANA (PMJJBY) is a one-year cover term life insurance scheme, renewable from year to year, offering life insurance cover for death due to any cause. Rs.2 lakh is payable on a subscriber’s death due to any cause. The premium payable is Rs.436/- per annum per subscriber.

    The proposed scheme of Telengana Government cannot be compared to PMJJBY, because it is free for all unorganised sector workers.


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