A Group Insurance Scheme (GIS) is being implemented since 1992-93 with a view to provide a social security cover to the workers of the powerloom sector in association with the Life Insurance Corporation of India. However, this scheme has not been successful since the State Governments, who were implementing the scheme and claiming reimbursement from Government of India for the premium paid, did not implement it wholeheartedly as some states like Gujarat, Maharashtra and Tamilnadu had indicated their precarious financial condition for not participating in the scheme. Details of funds released to various state governements towards central share for implementation of group insurance scheme for powerloom workers since inception till the end of Ninth Plan period is given in the following table :

Year	Amount Released (Rs.)	No. of Poweloom Workers Covered
1993-94	24,37,440/-	60,936
1994-95	6,94,840/-	17,371
1995-96	27,61,680/-	69,042
1996-97	8,86,040/-	22,151
1997-98	1,45,760/-	3,644
1998-99	2,55,280/-	6,382
1999-2000	2,90,400/-	7,260
2000-01	66,120/-	1,653
2001-02	19,400/-	485
2002-03	2,19,080/-	5477
Total	77,76,040/-	1,94,401

The present proposal to modify the existing scheme has been prepared in consultation with the representatives of the powerloom sector, concerned State Govts., Life Insurance Corporation of India (LIC), and the All India Powerloom Board. The National Textile Policy-2002 of the GOI seeks "...to provide welfare schemes for ensuring a healthy and safe working environment for powerloom workers". The modified scheme is based on `Janashri Bima Yojana' of LIC. The proposal will fulfil the Prime Minister's announcement made in his Independence Day speech that a Bunkar Bima Yojana will be introduced for all the weavers and artisans of the country.

The salient features of this scheme are as follows :

i.	Eligibility :
1.	The Powerloom weavers who are aged between 18 to 59 years of age group and below the poverty line (BPL)2 or marginally higher than the BPL shall be eligible for coverage.
2.	The Schemes is applicable to the families of powerloom workers engaged in the activity of weaving on powerlooms and in allied pre-weaving / preparatory activities like twisting, winding, warping and sizing. Self employed weaver families owning not more than 4 looms will also be eligible.
3.	Family for the purpose of the scheme shall be the beneficiary and his/her spouse and only one of the them shall be eligible for coverage.
a.	This does not include a proposal to reimburse Rs. 4 lakhs for 10000 powerloom weavers of AP received recently.
b.	The poverty line for urban workers at 1999-00 prices is estimated at Rs. 454.1 per capita.
4.	The beneficiary will give a self declaration that the family below the poverty line (BPL) or marginally above the poverty line.
ii.	Features :
There will be two components under the Scheme. (1) Coverage under existing`Janashri Bima Yojana' of LIC (2) Add on Group Insurance coverage for death: Both components will be administered by LIC.
A.	Janashri Bima Yojana :
a)	Life Insurance cover towards natural death shall be a sum of Rs. 20,000/- per member.
b)	For accidental death or permanent total disability, the coverage shall be maximum Rs. 50,000/- per member and for permanent partial disability the coverage shall be maximum of Rs. 25,000/- per member.
c)	Added benefits in the form of an associated scheme of LIC - "Siksha Sahyog Yojana", under which not more than 2 dependent children of the beneficiary studying in the class 9th to 12th are given Rs. 300/- per quarter/child as educational allowance based on some a transparent selection criterion.
d)	The annual premium charged would be Rs. 200/- per annum, of which i.e. Rs. 100/- is to be borne by Life Insurance Corporation from its Social Security Fund, Rs. 60/- is to be borne by the Government of India in Ministry of Textiles and remaining Rs. 40/- is to be borne by the beneficiary.
B.	Add on GIS for death :
a)	The insurance coverage shall be Rs. 30,000/- per member of the Group for natural as well as accidental death.
b)	The yearly premium amount for the first year shall be Rs. 180 per member of the Group, on the assumption that the average age of the group is 45 years. This premium amount may undergo revision, at the end of first year, depending upon the actual age profile of the group, and such revised premium amount shall be effective from second year onwards.
c)	50% of premium amount i.e. Rs. 90.00 shall be contributed by the Government of India and remaining 50% i.e. Rs. 90.00 by the powerloom weaver who is a member of the group
d)	Notwithstanding the provision at (b) above, the premium amount is subject to revision, on biennial basis, by the LIC based on the actual claim experience.

A powerloom weaver, who fulfills the eligibility conditions, shall have the option of choosing either the `Janashri Bima Yojana' or the add-on-insuracne cover or both. In case, a weaver is willing to choose both the options, the premium shall be Rs. 280/- per year (excluding LIC share of Rs. 100/- under Janashree Bima Yojana) of which Rs. 150/- shall be contributed by the GOI and remaining Rs. 130/- by the powerloom weaver. The coverage for natural death shall be Rs. 50,000 (20,000 + 30,000); Rs. 80,000 (50,000 + 30,000) for accidental death, maximum of Rs. 50,000 for permanent total disability and Rs. 25,000 for permanent partial disability (as per Janashree Scheme).