The Mahatma Gandhi Bunkar Bima Yojana (MGBBY) was launched by the Government of India in 2003 and later implemented in Odisha since 2005-06 by the Handlooms, Textiles & Handicrafts Department. The scheme provides insurance coverage for handloom weavers in case of natural or accidental death, total or partial disability, and offers scholarships for their children. It is managed in collaboration with Life Insurance Corporation of India (LIC).
Benefits
Insurance Coverage for Weavers
| Situation | Compensation Amount |
|---|---|
| Natural Death | ₹60,000/- |
| Accidental Death/Total Permanent Disability | ₹1,50,000/- |
| Partial Disability | ₹75,000/- |
- The amount will be directly transferred to the nominee’s bank account.
Scholarship under “Shiksha Sahyog Yojana”
- ₹600 per six months per child (for a maximum period of 4 years or till completion of Class XII, whichever comes first).
- Scholarship is available for a maximum of two children per weaver.
- No premium is required for the scholarship, as it is an additional benefit under MGBBY.
Premium Contribution
| Contributor | Annual Contribution (₹) |
|---|---|
| Government of India | ₹150/- |
| Weaver’s Contribution | ₹80/- |
| LIC Contribution | ₹100/- |
| Total Premium per Member | ₹330/- |
- Premium is paid annually and must be renewed every year to continue coverage.
Eligibility Criteria
- The weaver must earn at least 50% of their income from handloom weaving.
- All weavers (both male and female) between the age of 18 and 59 years are eligible.
- Weavers associated with:
- State Handloom Development Corporations
- Apex/Primary Handloom Weavers’ Cooperative Societies
- Weaver Unions/Associations
- Weavers outside co-operatives can also apply with a certificate from the State Directorate of Handlooms confirming their eligibility.
- The children of insured weavers are eligible for scholarships under Shiksha Sahyog Yojana (maximum 2 children per weaver).
Note:
- The State Directorate of Handlooms is responsible for verifying eligibility.
Application Process
Offline Application Process
For Insurance Coverage
- Application forms will be made available to Nodal Agencies by LIC.
- The weaver must fill out the application-cum-nomination form and submit it to the Nodal Agency along with their ₹80 contribution.
- The Nodal Agency will verify eligibility and forward the premium amount to LIC.
- LIC will issue Cards/Certificates to the insured weavers, mentioning the renewal date.
- In case of death/disability, the nominee must submit a claim to LIC through the Nodal Agency with supporting documents.
For Scholarship (Shiksha Sahyog Yojana)
- The weaver must fill out a scholarship application available at the Nodal Agency.
- The Nodal Agency will verify and forward the application to LIC P&GS Unit for scholarship disbursement.
- LIC will send an Account Payee Cheque to the Nodal Agency, which will distribute scholarships to eligible students.
- The scholarship will be stopped if the premium under MGBBY is not renewed.
Documents Required
- Aadhaar Card/Proof of Identity.
- Proof of Income (Minimum 50% from handloom weaving).
- Certificate from the State Directorate of Handlooms (for weavers outside cooperatives).
- For death or disability claims:
- Death Certificate/Post-Mortem Report (Natural/Accidental Death).
- Medical Certificate/Discharge Certificate (Disability cases).
- Police Inquiry Report (in case of accidental claims).
- Bank Passbook (first page copy with updated transactions).
Frequently Asked Questions (FAQs)
Q: What benefits are provided under this scheme?
The scheme offers life insurance coverage for weavers and scholarships for their children.
Q: How much does the nominee receive in case of natural death?
The nominee receives ₹60,000 in case of natural death.
Q: How much does the nominee receive in case of accidental death?
The nominee receives ₹1,50,000 in case of accidental death or total permanent disability.
Q: Is the amount directly transferred to the beneficiary’s bank account?
Yes, all payments are made directly to the nominee’s bank account via LIC.
Q: What is the age limit under this scheme?
The scheme is available for weavers aged 18 to 59 years.
Q: Is this scheme applicable for both male and female weavers?
Yes, the scheme covers both male and female weavers.
Q: Where can I find the application form?
The application form is available at the Nodal Agency or the State Directorate of Handlooms.
Q: How can I apply under this scheme?
Weavers must submit their application to the Nodal Agency along with their share of the premium.
Q: How can I apply for a scholarship under this scheme?
The weaver must fill out a scholarship application and submit it through the Nodal Agency to LIC.