The Government of India has decided to implement a scheme `Welfare of Powerloom workers through Group Insurance Scheme', during 10th Five Year Plan. A Copy of the original Scheme is enclosed for your ready reference. Salient features of the Scheme (as modified for implementation purpose) and implementation arrangements are given below :

(A) Salient Features :

1.

There are two separate components under the scheme - 1) Janashri Bima Yojana (JBY) and (2) Add on Group Insurance Scheme (GIS).

2.

In case of JBY, the total premium is Rs. 200/- of which Rs. 100/- shall be paid from the Social Security Fund of Govt. of India through LIC and the balance Rs. 100/- shall be shared between the Government and beneficiary @60:40. In case of Add on GIS, the total premium is Rs. 180/- which will be equally shared by the Govt. of India and the beneficiary on 50:50 basis. Thus, the total premium to be paid by the beneficiary, in case he opts for both insurance shceme, works out to Rs. 130/- (Rs. 40/- for JBY + Rs. 90/- for Add-on-GIS). The relative contribution, as mentioned above, is summarized below :

Component	Share of Premium
	Beneficiary	Central Govt.	LIC	Total
JBY (Rs.)	40	60	100	200
Add-on-GIS (Rs.)	90	90	-	180
Both (Rs.)	130	150	100	380

3.	In case of JBY, natural death, accidental death and disability are covered, whereas in case of Add-on-GIS, only death (natural as well as accidental) is covered. The coverage benefits under these components are given below :

Component	Natural death	Accidental death	Total Permanent disability	Partial Permanent disability
JBY (Rs.)	20,000	50,000	50,000	25,000
Add-on-GIS (Rs.)	30,000	30,000	-	-
Both	50,000	80,000	50,000	25,000

4.	A beneficiary will have the option of choosing either of the schemes or both.
5.	In addition the above, a worker under JBY will also be entitled for educational grant of Rs. 300/- per child/per quarter for two children studying in IXth Standard to XIIth Standard under LIC's Shiksha Sahayog Yojana (SSY).
6.	Only the Powerloom workers and self-employed weaver with not more than 4 looms, whose family incomes are below poverty line or marginally above poverty line, are eligible under the scheme.
7.	Family for the purpose of the scheme, includes worker and his / her spouse, and only one of them is eligible for coverage.
8.	The applicants should be in the age group of 18 to 59 years;
9.	The scheme is operational on yearly basis i.e. the premium paid will cover the applicant under insurance for one year. He can continue the insurance one year at a time by paying aforesaid premium upto the age of 59 yr.
(B)	Implementation Arrangements
1.	The scheme is jointly implemented by the Office of TXC and the LIC of India.
2.	The Regional Offices (ROs) of TXC shall be the nodal agencies for implementation of this scheme and their responsibilities include - sensitizing the powerloom workers about the benefits of the scheme, enrolling as many Powerloom workers as possible under the scheme and facilitating them in filling the applications as well as schemes.
3.	The Nodal Agencies will mobilize the Powerloom workers for becoming members of this sheme through the respective Powerloom Service Centres (PSCs) covering major powerloom clusters.
4.	The PSCs would enroll the Powerloom workers as members under the scheme collect their premium and send the applications along with the premium to the respective RO by 25 of each month. The premium amount should be sent to the RO in the form of demand draft drawn in favour of LIC and payable at the location of the concerned jurisdictional LIC office. The ROs on receipt of the details and the amount will compile the applications received from all the PSCs and submit to the LIC office, the list of powerloom workers as one Group along with the amount of premium received from beneficiary as well as Govt's contribution by the last working day of the month (separately for JBY and Add-on-GIS). Apart from the PSCs, the ROs can also collect the premium directly from the Powerloom workers.
5.	On receipt of the list of beneficiaries along with the applications and the equivalent premium amount, the LIC would give effect to the scheme from the 1st day of the following calender month.
6.	On receipt of funds from the Government, towards its share of premium, the TXC would sub-allocate the fund to the ROs in proportion to the targets, In case the government's share of premium is not readily available, the ROs would submit the applications along with the share of beneficiaries premium only to the LIC and on receipt of this, the LIC would give coverage to the concerned beneficiary and accept the late payment of government share of premium @PLR of SBI. However the claim, if any from the deneficiary would be settled by the LIC only after receipt of government share of premium.
7.	The above arrangements in effect amount to each RO would have maximum of 24 groups (12 for JBY) and 12 for Add-on-GIS in one year and the LIC would issue a Master Policy for each group - separately for JBY and Add-on-GIS i.e. a maximum of 24 policies in a year to a RO. Thus, in the country there would be maximum of 192 Master Policies in an year (8 ROs x 24 Policies) for JBY and Add-on-GIS separately.
8.	For the purpose of ensuring uniformity and smooth implementation of the scheme, the following forms/application etc., have been devised which are attached with this circular for the purpose of guidance and use by the user Agencies.
	i) Format of application to be filed by beneficiary under JBY (Application 1)
	ii) Format of aplication to be filed by beneficiary under Add-on-GIS (Application 2)
	iii) Format for claim to be preferred by the beneficiary nominee under JBY (Claim Form 1)
	iv) Format for claim to be preferred by the beneficiary nominee under Add-on-GIS (Claim Form 2)
	v) Proforma for Registers for JBY and Add-on-GIS (Registers 1 and 2) to be maintained by the PSCs.
	vi) Format of letter by the RO to the LIC, forwarding the details of beneficiaries along with premium.
	vii) Salient features of SSY scheme, along with format for application to be filed by the beneficiary, forwarding statement by RO to LIC and utilization certificates.
	viii) Material for draft brochure of the scheme, which can be used by ROs for developing brochures in local languages.
	ix) A draft presentation on the scheme, which can be converted into local language by the ROs.
	x) Targets for each ROs for the financial year 2003-04.
	xi) The list of LIC offices with addresses, which are associated with the scheme.
	xii) Proforma for submission of monthly progress report by the ROs to the TXC.
9.	While using the application forms, claim forms and other enclosures, the following specific points may please be noted :
	i) The bottom portion of application from is receipt/acknowledgement which needs to be filled and returned to the beneficiary, after due signature/stamp, by the PSC/RO.
	ii) Each applicant/beneficiary should be assigned unique registration number. An illustration is given below : "In case of a beneficiary under the purisdiction of Erode PSC Regional Office of the Textile Commissioner, Coimbatore, who applied for membership under the Scheme during the month of September 2003 and recorded at Sl. No. 1 of the register : For JBY PSC-ERD RO-CBE SEPT-2003 JBY 001 For Add-on-GIS PSC-ERD RO-CBE SEPT-2003 AGIS 001
	iii) The registration number as indicated above should be mentioned in the receipt acknowledgement and also should be written in the box as given at the top of the application form.
	iv) Please note that the filling up of bank account details in the application form are not mandatory. However, since the LIC would settle the claims through Account Payee cheques only, the beneficiary should be advised to open an account, and those details should be mentioned in the application form. However in case of claim, the availability of bank account, is mandatory.
	v) Please note that different certificates are required for different claims : Natural death, Accidental death, total permanent disability, partial permanent disability. The details of these certificates are mentioned in the claim forms. The ROs and PSCs should play an active role in assisting the beneficiaries in obtaining the certificates from the concerned authorities.
	vi) It should also be noted that LIC would require all the original certificates along with the claim. If a beneficiary wants any of the originals to be returned, the same should be communicated to the LIC in writing and the LIC would accordingly return the certificates after satisfying itself.
	vii) Please note that there is no requirement of any formal certificate in support of age, income and the health condition. The declarations made by the beneficiary are sufficient. However, the ROs/PSCs should assist the beneficiary in filling up the respective columns correctly based on whatever information available.
	viii) The PSCs and ROs would be given a lump sum amount, based on the requirement, to meet the cost of publicity, printing of application forms, as well as the cost incurred in making the drafts for submission to the LIC.
	ix) As per the scheme, the coverage is valid for one year only with effect from the date of coverage given by the LIC. The beneficiaries are required to fill up applications and submit the relevant premium amount, afresh, for coverage for the next year. The beneficiary needs to be educated sufficiently about this aspect.
	x) The targets to be achieved under the scheme, as indicated against each RO, are the minimum numbers. ROs are expected to exceed these targets in view of several benefits available to the powerloom workers, under the scheme. You should try to achieve the target within a month or few months, but before exceeding the target, ask for additional targets, so that necessary additional allocation on Govt's share could be tied up by us with the Government.
	xi) The benefits available under SSY for those workers covered under JBY are substantial since Rs. 2400/- for 2 children, is available as educational grant in an year, provided all eligibility conditions are met. These additional benefits will be very attractive to a poor powerloom worker and therefore it should be used as an effective instrument to mobilize and convince the powerloom workers to become members under the scheme.
	xii) The scholarship amount under SSY, to the eligible children/students of beneficiaries, is sent by the LIC to the RO/Nodal Agency, by one cheque, along with list of students on quarterly basis. The RO on receipt of this, will ensure the amount is disbursed to the concerned students by appropriate means: by way of Money Order or depositing in the Bank A/c of the beneficiary. After such disbursement, a statement of utilization as per prescribed proforma (enclosed) should be submitted by the RO to the LIC.
	xiii) The PSCs, who will be the primary agencies responsible for collection of premium from the beneficiaries, shall maintain master registers for JBY and Add-on0GIS separately in their offices. These registers are very important documents especially in a situation where the claims arise. In case the ROs are also collecting the premium from the beneficiaries, they shall also maintain these registers.

(C) Based on the above, all the ROs and the PSCs are requested to immediately take action to popularize and implement the scheme by holding meetings to educate the powerloom worker in all important clusters. The agencies of State Govts., Industry Associations, TRAs and other institutions should actively be associated with the implementation of the Scheme. The contents of this circular should also be shared and necessary liaison should be established with the concerned LIC offices. The ROs should submit monthly progress reports. on the Scheme, starting from the month of July. For any further clarification on this, Shri S. P. Chakraborty, Director (Powerlooms) in the Textile Commissioner Office and Ms. S. S. Soman, Dy. Secretary (P&G) in the H.Qrs. of LIC at Mumbai (Tel. 22029940) may be contacted)