Khadi Karigar Janashree Bima Yojana is a central government group insurance scheme for khadi artisans such as spinners and weavers. It offers financial protection against natural death, accidental death and disability, and also provides study scholarships for children of the insured member.
Ministry of Micro, Small and Medium Enterprises runs the scheme through the Khadi and Village Industries Commission (KVIC) in partnership with the Life Insurance Corporation of India (LIC). The scheme has been in force since 15 August 2003 and covers khadi artisans across the country.
Khadi Karigar Janashree Bima Yojana - Introduction
Khadi Karigar Janashree Bima Yojana is a group insurance scheme made for hardworking khadi artisans, including spinners and weavers. The scheme protects the family of an artisan by giving insurance cover for natural death, accidental death, and permanent or partial disability.
Beyond basic security, the scheme also cares for the future of the family by offering study scholarships for children studying in classes 9th to 12th. To join, an artisan must be a member of an approved vocation group. Khadi and Village Industries Commission (KVIC) launched the scheme with the Life Insurance Corporation of India (LIC) as the insurer.
Key Information
| Scheme Name | Khadi Karigar Janashree Bima Yojana |
| Level | Central |
| Scheme For | Infra |
| Beneficiary States | All |
| Category | Banking, Financial Services and Insurance, Social Welfare and Empowerment, Education and Learning, Business and Entrepreneurship |
| Target Beneficiaries | Individual |
| Sub Category | Setting up/start-up/entrepreneurship, Insurance, Scholarships and student finance, Crisis/Disaster/Accident, Annuity, Financial assistance, Citizen empowerment |
| Benefit Type | Cash |
| DBT Scheme | No |
| Nodal Ministry | Ministry of Micro, Small and Medium Enterprises |
| Implementing Agency | Pension Group Schemes Department, Life Insurance Corporation of India (LIC) |
| Open Date | 2003-08-15 |
| Tags | Insurance, Entrepreneur, Business, Persons with Disability, Citizen Empowerment |
Benefits
Khadi Karigar Janashree Bima Yojana gives cash support to the family of an artisan on death or disability. The exact amount depends on the type of claim.
| Benefit Category | Amount |
|---|---|
| Natural Death | rupees 20,000 |
| Accidental Death | rupees 50,000 |
| Permanent Disability (loss of two eyes or two limbs) | rupees 50,000 |
| Partial Disability (loss of one eye or one limb) | rupees 25,000 |
Also, the scheme gives a free add-on benefit of a scholarship of rupees 300 per quarter for children studying in classes 9th to 12th, covering up to two children per family.
Eligibility
Khadi artisans who meet the conditions given below can join the scheme through their khadi institution.
- Applicant should be a registered Khadi Artisan.
- Age should be between 18 and 59 years.
- Applicant should belong to an approved vocation or occupation group.
- The group should have a minimum of 25 members to be eligible.
How to File a Claim
When a claim needs to be filed, the claimant or nominee should follow these steps.
STEP 1 - Share the original death certificate with the Pension Group Schemes Department of LIC of India through the local khadi institution.
STEP 2 - Provide a police enquiry report along with the application if the claim is due to an accidental death.
STEP 3 - Let the khadi institution forward the required records and paperwork to the LIC branch that finalized the insurance cover.
STEP 4 - Life Insurance Corporation will settle the claim by issuing an account payee cheque directly to the beneficiary and inform the state government.
Documents
Applicants should keep the following documents ready for the claim process.
- Valid proof of age
- Income certificate
- Proof of occupation
- Aadhaar card
- Bank account details (Aadhaar seeded)
- Relevant death certificate or certificate of disability
Definitions
Accident
An accident is a sudden, unforeseen, and involuntary event caused by external, visible, and violent means.
Source: Read official source
Permanent Disability
This refers to the loss of two eyes or two limbs.
Source: Read official source
Partial Disability
This refers to the loss of one eye or one limb.
Source: Read official source
Approved Vocation / Occupation Groups
These are groups identified and notified by LIC in consultation with the nodal agency, which must consist of at least 25 members.
Source: Read official source
References
FAQ's
What defines permanent disability as per this scheme?
For the purpose of this scheme, permanent disability means the total loss of two eyes or two limbs.
What is the maximum financial support provided for death due to natural causes?
Financial support of rupees 20,000 is provided for death occurring from natural causes.
Are there any benefits for the children of the applicant?
Yes, the scheme provides a scholarship of rupees 300 per quarter for children studying in 9th to 12th standard, provided the family has a maximum of two children.
I am a 45-year-old khadi weaver. Am I eligible to apply for the scheme?
Yes, since the upper age limit for this scheme is 59 years, a 45-year-old weaver is eligible to apply.
Do I need to be from a particular state to be eligible?
No, this scheme is applicable to khadi artisans across all states in India.
Is partial disability covered under this scheme?
Yes, partial disability, such as the loss of one eye or one limb, is fully covered under the scheme.
How will I receive the benefits?
Since the scheme is managed by LIC, the benefit payment is issued directly to the nominee of the deceased person.
What is the breakdown of the premium contribution?
The premium is contributed as follows: Artisan - rupees 12.5, Khadi Institution - rupees 25, KVIC - rupees 12.5, and the Social Security Fund (administered by LIC) - rupees 50.
Is the application process available online?
Currently, the scheme only accepts offline applications through the respective khadi institutions.