#EmployeeSafety: 5 Ways Insurers Can Protect Gig Workers

According to a report by ASSOCHAM, India’s gig sector is expected to increase to US$455 billion at a CAGR of 17% by 2024 and has the potential to expand at least 2x the pre-pandemic estimates. In another estimate, India is likely to have 350 million gig jobs by 2025. The Labour Codes of 2019 define a gig worker as “a person who performs work or participates in a work arrangement and earns from such activities outside of a traditional employer-employee relationship”. For the first time in 2020, the Code on Social Security in India extends social security benefits like maternity leave, disability insurance, gratuity, health insurance, old age protection to the workers in the flourishing gig economy space. Traditionally, while gig workers were not recognised as “employees” that is soon changing and under the new codes, gig workers are entitled to insurance benefits.

Here is how insurers can protect gig workers.

● Personal accident cover: Gig workers are especially prone to dangerous situations on the road. For someone who has to urgently deliver parcels on a bike, it is crucial to be covered for medical expenses, dental covers and also life. The point to also be noted is that in case of any unfortunate incidents like disabilities or loss of life, their families have to be indemnified and in such cases covering their dependents and children either through employee, spouse and child (ESC) or employee, spouse, child and parents (ESCP) covers are especially recommended.

● Temporary disability/ incapacity: In case of an unfortunate event like an accident, a gig worker is incapacitated to work for a few months, they might find themselves in a difficult financial situation. Temporary incapacity covers are like a daily allowance that can cover them for a specific period of time. How to avail this cover in India? Temporary/ permanent disability cover: Gig workers can get a lump sum payout of upto 100% of the sum assured. Income loss cover: Typically a weekly allowance of x per week (say 1-2% of the sum insured) for 52 weeks

● Term life insurance: The ongoing pandemic has led to an increase in flexible employment as people are turning to gig or freelance work. With decreased job security, the safety net of a term life insurance policy can be extremely comforting and provide peace of mind. Although group life insurance hardly offers enough coverage for people with families or other dependents, it still provides some level of protection and is worth opting into.

● Maternity benefits for gig workers: The new Code on Social Security, 2020 (“Code”) replaces nine legislations which provided social security to the employees like Maternity Benefit Act, Employees’ Provident Fund Act, Employees’ Pension Scheme, Employees’ Compensation Act, among others. As per the new ‘code’, maternity benefits shall be applicable to every shop or establishment in which ten (10) or more employees are employed, or were employed, on any day of the preceding twelve (12) months; and such other shops or establishments notified by the appropriate Government. These can be provided as long as the gig worker stays with the company.

● Mental health covers for gig workers: The gig economy is vast and encompasses myriad types of work, from rideshare driving and various delivery services to content writing and consulting. As with any form of employment, there are various pros and cons of working in the gig economy. An unfortunate reality in today’s employment landscape is that worker health is typically a low priority. This is especially true for gig workers who tend to suffer from many mental health triggers like anxiety about consistent income, social isolation, inconsistent work schedules and much more. Therefore, the following mental health covers can be beneficial to them.

Companies should consider comprehensive health benefits and wellness memberships. They can offer teleconsultations with psychologists and psychiatrists to their workforce.

Companies should also consider insuring their employees with new-age covers that support counseling OPDs and also unlimited doctor consultations. Since gig work is here to stay it is important that we start thinking about the physical, mental and emotional wellbeing of gig workers.

(The given article is authored by Abhishek Poddar, CEO of Plum  and exclusively written for BW People)