In a landmark step to extend social protection to gig economy staff, the Tamil Nadu government has launched a free accident insurance scheme that offers annual coverage of up to Rs 5 lakh. The initiative is aimed at food-delivery riders, ride-hailing drivers, and courier-service providers who often face unsafe working conditions on congested roads.
The policy, managed by the state’s Platform-Based Gig Workers Welfare Board, will provide the full insured amount in cases of death or permanent disability. It also covers partial injuries, with compensation linked to the severity of impairment—from hearing loss to loss of limbs—based on medical certification. Premiums of around Rs105 per worker per year will be fully funded by the government, ensuring zero financial burden on workers.
The scheme currently targets 50,000 registered gig workers, though the state estimates nearly three lakh individuals falling within the eligible category. Yet enrolment has been slower than expected, with only 10,000 workers signing up so far. To accelerate participation, the government is collaborating with platforms such as Swiggy, Zomato and Rapido, and plans to set up outreach camps during workers’ off-duty hours.
Complementing the insurance plan, Tamil Nadu is also offering a subsidy of Rs 20,000 for electric scooter purchases. With delivery staff and drivers relying heavily on two-wheelers, the move is designed to ease financial strain and encourage adoption of cleaner vehicles.
Together, these measures mark a significant shift in recognising gig workers as part of the formal labour framework. For thousands of riders and drivers who face daily risks, the scheme offers more than financial support—it signals that their safety and wellbeing are finally gaining space on the policy agenda.
