Mahatma Gandhi Bunakar Bima Yojana
The Mahatma Gandhi Bunkar Bima Yojana is a central sector scheme run by the Ministry of Textiles, Government of India. It was introduced as a revised version of the earlier “Bunkar Bima Yojana”, which began in 2003. The purpose of the scheme is to provide life insurance and accident & disability cover to handloom weavers/workers, thereby offering social security in case of death or disability. The benefit for you, as a handloom‐weaver business entity or worker, is that you gain a safety net that helps protect you and your enterprise from income‐shock due to death/disability.
Key Features
- Cover for natural death: If a covered weaver suffers a natural death while insured under MGBBY, a specified sum is paid to the nominee of the weaver. For example, the scheme provides for a sum assured of ₹ 60,000 in case of natural death.
- Cover for accidental death and total permanent disability: If a covered weaver suffers an accidental death or becomes totally and permanently disabled due to an accident (as defined under scheme), the sum assured is higher ₹ 1,50,000 in many cases under MGBBY guidelines.
- Cover for partial permanent disability: If a covered weaver suffers partial disability (loss of certain limbs/vision etc.), then a lesser sum (e.g., ₹ 75,000) may be payable to the nominee or the insured person.
- Premium sharing: The annual premium for MGBBY is ₹ 470 in many states. The Government of India contributes about ₹ 290, the weaver ₹ 80 and the implementing agency ₹ 100. This cost‐sharing model encourages enrolment while keeping cost low for the weaver.
- Beneficiary age group and registration: Eligible weavers (male or female) in the specified age group (for example 18-59 years) who are registered under the handloom weavers’ scheme and have valid credentials are eligible for the cover.
- Direct Benefit Transfer (DBT): Claims under MGBBY are settled by the life‐insurance company (for example Life Insurance Corporation of India) and the payment is made directly into the nominee’s bank account, ensuring transparency and quick access.
- Scholarship support for children: In some states, as part of the converged scheme, children of enrolled weavers studying in classes IX-XII may receive a quarterly scholarship (e.g., ₹300 per quarter) under the MGBBY concurrent scheme.
Financial Assistance
Eligibility Criteria
Who Can Apply:
- Handloom weavers and allied workers aged 18 to 59 years.
- Individuals engaged in weaving as a primary occupation.
- Weavers registered with state handloom departments or having Weaver Identity Cards.
- Self-employed weavers or those working under cooperative societies or clusters.
- Weavers who are not beneficiaries of similar overlapping insurance schemes.
Who Cannot Apply:
- Individuals below 18 years or above 59 years of age.
- Persons not engaged in handloom weaving or allied activities.
- Unregistered workers without verifiable identity or occupation records.
- Individuals already insured under alternative government weaver insurance schemes with overlapping benefits.
- Applicants with incomplete documentation or unverifiable identity details.
Documents Required
- Weaver Identity Card or certificate from handloom department
- Proof of age (Aadhaar, birth certificate or similar)
- Identity and address proof
- Bank account details for nominee or settlement
- Occupational details or cooperative membership proof, if applicable
Application Process for the Scheme
Option 1: Apply with Bullit (Recommended)
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Option 2: Apply through State Handloom Departments
- Visit the nearest State Handloom Office or Weaver Service Centre.
- Fill out the MGBBY enrollment form with personal and occupational details.
- Submit identity proof, age documents and weaver identification.
- Pay the weaver’s contribution towards the premium.
- The implementing agency forwards details to the insurer.
- Upon approval, the insurance cover becomes active for the policy year.
Power Combos with The Scheme