Government Schemes

Janashri Beema Yojana for Khadi Artisans

Mukesh Jindal
Written by Mukesh Jindal

Khadi & Village Industries Commission (KVIC), a self-governing body promoting Khadi and Village Industries for the purpose of providing rural employment. The KVIC, like a Social Security Measure to artisans engaged in the Khadi activity, introduced a Group Insurance Scheme captioned “Khadi Karigar Janashree Bima Yojana”. The Life Insurance Corporation of India (LIC) designed this scheme specifically for Khadi artisans and launched it on 15th August 2003. The Scheme is centrally operated covering artisans throughout the country. The details are already circulated to all concerned. This common communication by LIC of India & KVIC intends operational convenience for both organizations (KVIC & LIC) and effective implementation of the scheme based on past one year of experience in administering the scheme.

The  “Khadi Karigar Janashree Bima Yojana” was launched as a 5-year plan on KVIC on 15th August 2003 by the government of India as the Ministry of Small Scale Industries and Agro & Rural Industries. The schemes will cover the spinning artisans, weavers, and the spinning, Post weaving artisans in the Sector of Khadi. The scheme is not a life insurance scheme type.

Funds Allocated for Scheme

The Khadi artisans are covered under the scheme as mentioned earlier in the article as launched on 15th August 2003 as under the Khadi & Village Industries Commission and the benefits are extended to the Khadi workers as they only have to pay the Premium for the scheme which is just Rs. 12.50 per year.

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Premium Contribution Break Up

  • Artisan Rs. 12.50
  • Khadi Institution Rs. 25.00
  • KVIC Rs. 12.50
  • Social Security Fund administered by LIC Rs. 50.00

Benefits Paid Under this Scheme:

  • On Natural death the benefits which are allocated are Rs. 30,000
  • In case of permanent disability, the candidate will get the benefit of Rs. 75,000
  • On partial permanent disability Rs. 37,500

The number of artisans so far covered in the current plan period under the scheme is 2.77 lakhs and by the end of the plan period, the target is 2.90 lakh artisans.

The funds incurred by the Khadi Institutions and Union Government under the said Yojana so far are Rs. 5.16 crore and Rs. 10.31 crore respectively.

How to Apply

The nominee of the deceased Khadi worker has to give the original death certificate to get the benefits of the scheme under the scheme. The scheme is under the Department of LIC who will issue the benefit to the nominee of the deceased person.

Fill the claim form on this website

Coverage of Artisans






K.V.I.C has implemented this insurance scheme for khadi artisans with the full support from Life Insurance Corporation of India. Khadi institutions registered K.V.I.C act as nodal agencies.

Eligibility for the Scheme

The age of the Khadi Worker should be in between 18 yrs & 59 yrs. and Below and marginally above the poverty line.


Death certificate

  1. For death due to natural cause Rs. 20,000

Accident benefit

  • For death due to accident or permanent disability i.e. loss of two eyes or two limbs; Rs.50,000
  • For the partial disability i.e. loss of one eye or one limb; Rs. 25,000

Implementation Janashri Beema Yojana

  • The Khadi & Village Industries Commission identified its field offices (State/Divisional Offices) for the purpose of operating the Scheme.
  • Director, State/Divisional Office, KVIC will obtain a list of artisans for covering under Khadi Karigar Janashree Bima Yojana from Khadi institutions affiliated to both KVIC and KVIBs and hand over to designated P&GS Units of LIC. State/Divisional Director countersigns these lists.
  • In the first week of November 2004, the State/Divisional Office had to confirm the final number of artisans for the purpose of settlement of premium to LIC of India as well as recovery of the share of premium from Khadi institutions.
  • The State/Divisional Offices are to furnish quarterly progress report as to the preferring of claims as well as the settlement of claims.
  • The pending claims in respect of artisans covered for the period from 15.08.2003 to 14.08.2004 were to be settled by the P&GS Units of LIC of India designated for this purpose during the year 2003-04.

Benefits under Scheme Janashri Beema Yojana

  1.  The Scheme artisan will be given the risk cover of Rs.20,0000 for the Natural death and Rs. 50,000 for the death of the accident.
  2. In case of Partial disability, Rs.25,000 would be given.
  3. The LIC cover the Natural death of Rs. 30,000 and death due to any accidents of up to Rs. 75,000.
  4. In case of permanent disability due to an accident the insurance cover of Rs. 75,000 would be given to the candidates.
  5. In case of Partial Disability the charges of any additional cost would be given and Rs. 37,500.

The Shiksha Sahayog Yojana is add-on coverage under JBY, without any additional premium. The wards of the khadi artisans (benefit restricted to two children per member/family) covered under the JBY are entitled to receive up to Rs. 1200 per annum per ward towards tuition fee under the Shiksha Sahayog Yojana. This benefit is only forwards studying in classes IX to XII, including those studying in Industrial Training Institutes (ITI).

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Various Industries

The Industries which comprises the Khadi Programme are hand spun and the hand weaved cotton industries, silk Varieties, and the Muslin industries.

These are:

Mineral Based Industry

  • Forest Based Industry
  • Agro Based and Food Processing Industry
  • Polymer and Chemical Based Industry
  • Rural Engineering
  • Bio-Technology Industry
  • Hand Made Paper & Fibre Industry
  • Service Industry

Other Information

A premium of Rs 100 per member, per annum, is borne by the
A government of India from the social security fund002E
Category: Insurance
Sector: Khadi and Village Industries

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Khadi is an Indian heritage and this scheme preserves it in every possible way. Going back to the ancient ways it also provides employment. We hope that it grows efficiently in the coming years.

About the author

Mukesh Jindal

Mukesh Jindal

My name is Mukesh Jindal, and I am from New Delhi, India. I am an engineer by profession. I am employed by an IT company in which I work. My topics of interest include technology, mobile, and apps.

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