[MGBBY] Mahatma Gandhi Bunkar Bima Yojana

mahatma gandhi bunkar yojana|mahatma gandhi bunkar bima yojana (mgbby upsc|mg bunkar bima yojana

The Mahatma Gandhi Bunkar Bima Yojana is an insurance scheme for all community weavers. The scheme provides insurance to the beneficiaries in cases of accidental death, natural death, partial or complete disability. The scheme is implemented by the Union Ministry of Textiles and is administered by the Life Insurance Corporation of India (LIC).

The Government of India had launched the Bunkar Bima Yojana for Handloom Weavers to provide insurance cover by associating with Life Insurance Corporation of India (LIC). Under this scheme, the government provides insurances that apply to all community weavers in the case of natural death, accidental death as well as partial and permanent disability due to an accident. The concerned handloom authority in the state will finalise the insurance coverage, as the Life Insurance Corporation of India administers the scheme.

Premium Insurance Coverage


The annual premium of Rs. 470/- per applicant will be shared as follows:

S.No Contribution Amount
1. GOI contribution Rs. 290/-
2. Weavers’ contribution Rs. 80/-
3. LIC’s contribution Rs. 100/-
Total Premium Rs. 470/-

mahatma gandhi bunkar yojana Eligibility Criteria

For those who need to be insured under this scheme, has to satisfy the below-following conditions to avail the benefits of the Scheme.

  • The weaver’s income must earn at least 50% of his income from handloom weaving.
  • All weavers must be between 18 to 59 years of age which includes minorities, women weavers and weavers belonging to North East Region are eligible to apply for this insurance scheme.
  • The scheme is applicable to the weavers those who are belonging to the State Handloom Development Corporations/Apex/Primary Handloom Weavers and Cooperative Societies will be covered under the Scheme. Outside co-operative weavers are also covered under the scheme when they provide an eligibility certificate from the State Directorate of Handlooms.
  • The State Director in charge of Handlooms is responsible for checking the eligibility of the weavers who are intended to be covered under this scheme.
  • The concerned State Director and LIC are responsible to ensure that the women weavers belonging to minorities and weavers of the NER States that includes the states like Arunachal Pradesh, Assam, Nagaland, Tripura, Manipur, Meghalaya, Mizoram and Sikkim are given adequate representation while implementing the scheme.

mg bunkar bima yojana Benefits

  1. This scheme also provides scholarship to the children whose family covered under “Shiksha Sahyog Yojana”. A scholarship given per child is of amount Rs. 300/- per quarter is to be paid to IX to XII students over a period of 4 years or till they complete XII standard, whichever event occurs earlier.
  2. Once a person is admitted as a member under Mahatma Gandhi Bunkar Bima Yojana, further proof of income is not necessary at the time of selection of beneficiary under the scheme.
  3. No premium is charged either to the parent of the scholarship holder or to the nodal agency.

[MGBBY] Mahatma Gandhi Bunkar Bima Yojana

The beneficiary will have to furnish the original death certificate of the deceased person to the nodal agency.

The agency will proceed further to forward the documents along with the claim records/papers to LIC as the branch which has originally finalised the insurance cover.

The Life Insurance Corporation will settle all the claims by sending account Payee Cheque directly to the beneficiary. This intimation has to be furnished to the concerned State Government and the Office of the Development Commissioner for Handlooms.

In the event of an accident claim, the police inquiry report will also be required to be submitted.

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