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Frequently Asked Questions
The Government of India introduced the “Bunkar Bima Yojana” in December 2003 which was a combination of “Janshree Bima Yojana” and the Add-on Group Insurance Scheme being implemented in collaboration with the Life Insurance Corporation of India. Since, 2005-06 this scheme has been implemented by the Handlooms, Textiles & Handicrafts Department of the Government of Odisha with the revised title “Mahatma Gandhi Bunkar Yojana”.
The basic objective of the ‘Mahatama Gandhi Bunkar Bima Yojana’ is to provide enhanced insurance coverage to the handloom weavers in the case of natural as well as accidental death and in cases of total or partial disability. The concerned handloom authority in the state will finalize the insurance coverage, as the Life Insurance Corporation of India administers the scheme.
The State Governments and the State Handloom Corporations/Apex/Primary Handloom Weavers Cooperative Societies/Unions/ Associations shall be actively associated in the implementation of the scheme by way of sensitizing the handloom weavers to join the scheme through advertisements through print and other media.
Premium Insurance Coverage: The annual total premium of ₹ 330/- per member will be shared as under:
1. GOI contribution: ₹ 150/-
2. Weavers’ contribution: ₹ 80/-
3. LIC’s contribution: ₹ 100/-
Operational Modalities:
1. The scheme is renewable every year and continuation of coverage is ensured only on payment of premium on the due date of renewal every year. The premium amount shall be paid by the beneficiary only one-time for the whole year to the Life Insurance Corporation of India. This scheme will be effective from 1.10.2007.
2. The premium, once paid, shall not be refunded.
3. Maximum number of renewals shall be effected each year. The insurance coverage is ordinarily effective only after receipt of the entire amount of premium i.e. both the Government’s as well as beneficiary’s share. In an unlikely situation where the Government’s share of the premium is not ready, the LIC shall accept the share of the beneficiary and affect the coverage accordingly.
4. The office of the State Director-in-charge of Handlooms & Textiles and its subordinate offices in the field shall be the Nodal agencies for implementation of the scheme. Nodal agency will act for and on behalf of the insured members in all matters relating to the insurance cover. LIC will get in touch with State Directors In-charge of Handlooms for identification of beneficiaries, furnishing forms, instructions etc. for maximum coverage of weavers under the scheme.
Release of Funds:
1. For release of funds, LIC and the Authority In-charge of Handlooms in the State shall identify the weavers to be covered under the MGBBY. The Office of the Development Commissioner for Handlooms (DCHL), Government of India (GOI) in the Ministry of Textiles (MOT) shall release its share of the premium to the Life Insurance Corporation of India directly in advance, based on the number of handloom weavers to be covered under the Scheme. Every subsequent request for release must be accompanied with the note on the performance of the insurance company regarding the claims made and claims settled.
2. The Central Government share of the premium will be released directly to the LIC.
Monitoring And Evaluation:
1. Monitoring and evaluation of the progress of the Scheme will be done by the State Governments, which will submit quarterly physical and financial progress reports to the Development Commissioner for Handlooms.
2. LIC will hold a meeting with the State Director/Commissioner In-charge of Handlooms and the Assistant Director, Handlooms at the district level in the 2nd week of every month to review the implementation of the MGGBY Scheme. LIC will arrange to provide the figures pertaining to that State from their Claims Department well in advance.
3. The Office of the Development Commissioner for Handlooms will monitor the progress through its field office and by convening meetings with State Government and LIC from time to time.
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