Operationalise life cover for delivery workers

Source: The post “Operationalise life cover for delivery workers” has been created based on “Operationalise life cover for delivery workers” published in “Business Line” on 30th September 2026.

UPSC Syllabus: GS 2- Governance

Context: A 33-year-old delivery rider in Hyderabad recently died of a heart attack after a long shift. His family later discovered that the platform’s insurance covered only accidental deaths, leaving them without financial support. Such cases highlight the lack of comprehensive life insurance for gig workers. Also, India has approximately 1.2 crore gig workers, and their number is projected to reach 2.3 crore by 2030 (NITI Aayog), making effective social security measures increasingly important.

Background and Existing Provisions

1. Code on Social Security, 2020: Sections 113 and 114 of the Code on Social Security, 2020 require the Central and State Governments to frame social security schemes for gig and platform workers, including life and disability cover, accident insurance, health and maternity benefits.
   1. Implementation gap: The Code came into force on 21 November 2025, but life insurance coverage for gig workers has not been fully operationalised.
   2. Motor Vehicle Aggregator Guidelines: The 2020 guidelines prescribed ₹10 lakh term life insurance for registered drivers of aggregators, and the revised guidelines of July 2025 reiterated this requirement.
2. Karnataka’s initiative: The Platform Based Gig Workers (Social Security and Welfare) Act, 2025, provides ₹2 lakh life cover payable on natural death.

Major Challenges Faced by Gig Workers

1. Inadequate insurance coverage: Most platforms provide personal accident insurance, which generally does not cover natural deaths, such as deaths caused by heart attacks.
2. Financial insecurity: The death of a gig worker can leave the family without financial support, particularly when the worker is the primary earner.
3. Occupational risks: Night-time deliveries, traffic accidents, pressure for quick deliveries, frequent mobile use while driving and irregular meals increase the health and safety risks faced by delivery workers.
4. Poor implementation: Despite existing legal provisions and guidelines, adequate life insurance coverage has not been effectively implemented.
5. Limited state-level protection: Karnataka is the only state whose legislation provides life cover payable on natural death.

Suggested Measures

1. Make PMJJBY and PMSBY basic insurance covers: The government should use these existing schemes to provide immediate and affordable insurance protection to gig workers.
2. Expand insurance coverage: PMJJBY provides ₹2 lakh cover for death due to any cause at an annual premium of ₹436, while PMSBY provides ₹2 lakh cover for accidental death at an annual premium of ₹20.
3. Share the premium burden: Platforms should bear the insurance premiums or deduct them from workers’ initial earnings at the time of onboarding.
4. Enforce aggregator guidelines: The Ministry of Road Transport and Highways should ensure compliance with the prescribed ₹10 lakh term life cover for registered drivers and link licence renewal to compliance.
5. Operationalise the Social Security Code: The Ministry of Labour should implement a clear scheme that provides life insurance as a defined benefit for delivery workers.
6. Develop suitable insurance products: IRDAI should issue specific guidelines for platform workers by defining the policyholder, enrolment conditions and insurance amounts.
7. Use platform data for risk assessment: Insurers should use information on working hours, night shifts, accident history, traffic zones and telematics to assess risks and develop suitable insurance products.

Conclusion: Ensuring life insurance for gig workers is essential for inclusive social security and the financial protection of vulnerable families. Making PMJJBY and PMSBY basic insurance covers, enforcing existing guidelines and operationalising the Social Security Code can bridge the gap between legal provisions and actual protection.

Question: Gig and platform workers face significant social security gaps, particularly in life insurance coverage. Discuss the challenges and suggest measures to ensure adequate life cover for them.

Source: Business Line