Insurance for Gig Workers: A New Era, A New Security
Gig workers are today’s new era workers – Insurance for Gig Workers. These people are those who do not do traditional 9-to-5 jobs, but work on their own terms – like Zomato-Swiggy delivery boys, Uber-Ola drivers, freelancers, or online content creators. Their work is flexible, but what about future security? Insurance is a big question for Gig workers, because they do not have the same benefits as regular employees. So let’s understand in detail – who are gig workers, why is insurance necessary, what policies are available, and how can this system be better?
Who are Gig Workers?
First, let’s understand what is meant by gig workers. Gig workers are those people who do short-term or project-based work, usually not as permanent employees of any company. They are a kind of “freelancers” who look for work according to their time and skills. The gig economy is growing rapidly in India, and here are examples:
Delivery Partners: Zomato, Swiggy, Amazon riders.
Drivers: Uber, Ola, Rapido drivers.
Freelancers: Graphic designers, writers, coders who work on Upwork or Fiverr.
Service Providers: Urban Company plumbers, electricians, beauticians.
According to a report by NITI Aayog, there could be more than 2.5 crore gig workers in India by 2025. These people make a big contribution to the country’s economy, but their job security and benefits scenario is still weak.
Why is Insurance necessary for Gig Workers?
Now the question is – why do gig workers need insurance? Look, regular employees get benefits from the company – health insurance, PF, gratuity, paid leaves. But gig workers are independent, so they do not get all this. Plus, their work can also be risky:
Delivery boys or drivers are at risk of accidents.
For freelancers, income is unstable, so there is a problem of money in medical emergencies.
No social security – there is no backup at the time of retirement or illness.
Insurance can become a safety net for them, which can protect them from financial and health-related tensions. It not only secures their life, but also supports the family.
Challenges of Gig Workers
The insurance scene for gig workers is a little complicated, because:
No Fixed Income: Their earnings are different every month, so paying the premium can be tough.
Lack of Awareness: Many gig workers do not know what insurance options are available.
No Employer Support: Companies call them “partners”, not employees, so they do not take responsibility for insurance.
High Risk Jobs: There is a high chance of accident in delivery and driving, due to which insurance companies charge high premium.
Policy Gaps: Traditional insurance policies are not designed according to the unique needs of gig workers.
Insurance Options for Gig Workers
Now let’s talk about what insurance options are available for gig workers. There are currently very few full-fledged gig worker-specific policies in India, but some general and emerging options can be availed:
Health Insurance
This is most important. Gig workers can get health insurance for themselves and their families.
Examples: Star Health, ICICI Lombard, HDFC Ergo plans are available for Rs 5,000-10,000 annual premium, which covers hospitalization, OPD, and medicines.
Benefit: Delivery riders get a lot of relief in case of accident or illness.
Accident Insurance (Personal Accident Policy)
This policy provides coverage in case of injury, disability, or death due to accident.
Examples: Bajaj Allianz, Reliance General plans of Rs 500-2,000 provide cover of up to Rs 5-10 lakh annually.
Perfect For: Drivers and riders who are at high risk of road accidents.
Term Life Insurance
This is a simple life insurance which gives a lump sum amount to the family in case of death.
Examples: LIC, Max Life plans of Rs 3,000-8,000 provide cover of up to Rs 50 lakh annually.
Benefit: For freelancers or gig workers, the future of the family is secure.
Some gig platforms (Zomato, Swiggy, Ola) offer group insurance for their workers.
Details: Zomato’s “Riders Insurance” offers accident cover up to Rs 5 lakh and medical cover up to Rs 50,000 (free for active riders). Swiggy also offers similar benefits.
Problem: This is only for active workers and ends when they leave the platform.
Government Schemes for gig workers’ insurance
PMJJBY (Pradhan Mantri Jeevan Jyoti Bima Yojana): Life cover of Rs 2 lakh on Rs 436 yearly premium.
PMSBY (Pradhan Mantri Suraksha Bima Yojana): Accident cover of Rs 2 lakh and disability cover of Rs 1 lakh on Rs 20 yearly.
Ayushman Bharat: Free health coverage up to Rs 5 lakh for low-income families (gig workers can be eligible).
Advantage: These are cheap and perfect for rural gig workers.
Micro-Insurance Plans
Small premium plans like SBI Life’s “Saral Bima” or LIC’s micro-plans provide basic cover in Rs 100-500 monthly.
Best For: Low-income gig workers who can save a little.
Insurance Scenario for Gig Workers in India
The gig economy is still new in India, so the insurance system is also in the developing stage.
Some platforms have their own initiative:
Zomato: Accident and medical insurance to riders for free.
Ola: Accident cover and income loss protection under “Ola Partner Care”.
Urban Company: Health checkups and basic insurance for partners.
But this is not enough. According to a NITI Aayog report, 80% of gig workers have no formal insurance. Plus, private insurers have not yet launched gig-specific plans that cover their flexible income and high-risk jobs.
Learn from global examples
Other countries in the world are leading in insurance for gig workers:
USA: Uber and Lyft drivers are given accident insurance when they are “on-trip”. Platforms like “Stratum” offer group health plans for freelancers.
UK: Deliveroo riders get free accident cover and sick pay.
Singapore: Government has created “Gig Worker Insurance Scheme” which has low-cost health and accident plans.
India can also take inspiration from these, so that a dedicated framework is made for gig workers.
Challenges in Insurance for Gig Workers
The insurance system is not perfect for gig workers, and there are some big challenges:
Affordability: Paying monthly premium is difficult for gig workers when income is not fixed.
Awareness: Rural or semi-urban gig workers do not know the benefits of insurance.
Policy Design: Traditional plans are made for long-term employees, not for the short-term needs of gig workers.
Platform Responsibility: Companies call them “independent contractors”, so they put the burden of insurance on the workers.
Claim Process: Paperwork and delays for claims become a frustration for gig workers.
Solutions and Reforms
There are some ideas to improve the insurance system for gig workers:
Gig-Specific Insurance Plans: Insurers should make plans with small, flexible premiums that cover accident, health, and income loss.
Platform Contribution: Platforms like Zomato, Ola should pay a share of the insurance premium, like a 50-50 model.
Government Role: A “Gig Worker Welfare Fund” can be created, in which platforms and government should contribute, and workers get subsidized insurance.
Digital Access: It should be easy to buy insurance and file claims through apps or USSD codes.
Awareness Campaigns: It is important to educate gig workers about insurance through camps and workshops in rural areas.
Tips for Gig Workers
Suggestions for gig workers:
Start Small: Start with small premium plans like PMSBY or PMJJBY.
Check Platform Benefits: Ask your employer (Zomato, Uber) what insurance they provide.
Group Plans: Negotiate group insurance with gig workers like you – premium will be less.
Emergency Fund: Keep some savings so that you have a backup along with insurance.
Compare Online: Check options on platforms like Policybazaar, Insurancedekho and choose the best deal.
Success Stories
Ravi (Delhi): A Swiggy rider took PMSBY and after the accident got a claim of Rs 2 lakh, which helped him get treatment.
Priya (Mumbai): Freelance writer took term insurance of Rs 5,000 annually, now his family is secure.
Anil (Bangalore): Ola driver covered his hospital bill with the platform’s group insurance when he met with an accident.
Government’s Role
Government passed the Social Security Code in 2020, which plans to provide social security benefits to gig workers. This may include options like insurance, PF, and pension. But implementation is still slow. NITI Aayog has also suggested that platforms should make insurance mandatory for gig workers, but right now it is optional.
Future of Insurance for Gig Workers
The gig economy in India can reach $455 billion by 2030, and the number of gig workers will also increase. Perhaps in the future:
AI-based insurance plans will come that calculate real-time risk.
Partnerships between platforms and insurers will increase.
The government can launch a universal gig worker insurance scheme.
Conclusion: A new way to safety
Friends, insurance for gig workers is a topic that is very relevant in today’s time. These people are running their lives with their flexible work, but it is important to secure their future. Health, accident, and life insurance can become a safety net for them, so that not only they themselves remain tension-free, but their family is also protected.
So if you are a gig worker, explore insurance options today itself – even a small premium can give great benefits. And if you read this blog