Low registration against an ambitious target The Karnataka Labour Department reports that just **30,256 gig workers** have signed up for the state’s insurance scheme, including **10,815 in Bengaluru**. The government originally envisaged covering roughly **2.3 lakh** workers – a gap that underscores the scheme’s limited reach.
What the scheme provides Launched in **September 2023**, the programme offers a **Rs 4 lakh** insurance package: - **Rs 2 lakh** life cover - **Rs 2 lakh** accidental death cover - Up to **Rs 2 lakh** for permanent disability caused by an accident - Hospital‑expense reimbursement of up to **Rs 1 lakh** for accident‑related treatment
Eligibility is free of charge via the **Seva Sindhu** portal, with age limits of **18‑60 years** and a condition that applicants are not income‑tax payers.
Registration and claim activity so far Out of the 30,256 registrants, **28,786** are Karnataka residents and **1,470** hail from other states. Despite the sizeable potential pool of **2.5‑3 lakh** gig workers in the state (about **2 lakh** in Bengaluru alone), only **seven claims** have been filed, resulting in **Rs 11.79 lakh** paid out.
G Manjunath, additional labour commissioner and chair of the Karnataka Platform‑Based Gig Workers Social Security and Welfare Board, said the government has repeatedly approached platforms and aggregators to encourage enrolment, but the response remains limited. He added that the department also promotes registration through **e‑Shram** and **Seva Sindhu** portals.
Legal backdrop and fee collection The **Karnataka Platform‑Based Gig Workers (Social Security and Welfare) Board**, set up under the **2025 Act**, has registered **14 aggregators**. The Act, effective **30 May 2025**, mandates a **1 % levy on platform payouts**, with sector‑specific caps (e.g., 50 paise per two‑wheel transaction for ride‑hailing).
The Karnataka High Court declined to stay the Act but ordered food‑delivery and e‑commerce platforms such as **Zomato, Swiggy, Blinkit and Zepto** to deposit the second‑quarter welfare fee with the court registry. Only a few players, like **Yulu Bikes** and **Namma Yatri**, have been paying the fee directly to the department.
Industry response The **Indian Federation of App‑Based Transport Workers (IFAT)** and the **Karnataka App‑Based Workers Union (KAWU)** have urged the government to accelerate welfare measures, including health, maternity, income benefits, scholarships, emergency aid and pensions. They also called for the funds already deposited by aggregators to be redirected to workers’ welfare.
--- *The data reflects the situation as of the latest Labour Department records and statements to Moneycontrol.*