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Organisation : Office of the Development Commissioner (Handlooms)
Scheme Name : Mahatma Gandhi Bunkar Bima Yojana (MGBBY)
Applicable States/ UTs : All Over India
Website :
Terms & Conditions :

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Hadloom Schemes MGBBY

The Government of India had introduced the „Bunkar Bima Yojana‟ in December, 2003 which was a combination of Janshree Bima Yojana and Add-on Group Insurance Scheme being implemented in collaboration with the Life Insurance Corporation of India.

Related : CHCDS Comprehensive Handloom Cluster Development Scheme :

Since, 2005-06 this scheme was revised and has been implemented revised with title “Mahatma Gandhi Bunkar Yojana”.


The basic objective of the „Mahatama Gandhi Bunkar Bima Yojana‟ is to provide enhanced insurance cover to the handloom weavers in the case of natural as well as accidental death and in cases of total or partial disability.


For availing of assistance under the scheme, the weaver should fulfill the following conditions :
1. The weaver should be earning at least 50% of his income from handloom weaving.
2. All weavers, whether male or female, between the age group of 18 and 59 years are eligible to be covered under the scheme, including minorities, women weavers and weavers belonging to NER.

3. The weavers belonging to the State Handloom Development Corporations/Apex/ Primary Handloom Weavers‟ Cooperative Societies will be covered under the Scheme. Weavers outside co-operative can also be covered under the scheme on a certificate from the State Directorate of Handlooms that they are fulfilling the eligibility conditions.

4. It will be the responsibility of the State Director in charge of Handlooms to verify the eligibility of the weavers who are proposed to be covered under the scheme.

5. It will be the responsibility of the State Director In charge and LIC to ensure that women weavers, weavers belonging to minorities and weavers of NER States (Arunachal Pradesh, Assam, Manipur, Meghalaya, Mizoram, Nagaland, Tripura and Sikkim) are given adequate representation while implementing the scheme.

Salient Features

1. The scheme will be administered by the LIC of India.
2. The authority in-charge of Handlooms in the State shall finalise insurance coverage of the weavers with the Life Insurance Corporation of India.

Additional Benefits

1. The “Mahatma Gandhi Bunkar Bima Yojana” also provides scholarship to the children of parents who are covered under it under “Shiksha Sahyog Yojana”.

2. A scholarship of Rs.300/- per quarter per child is to be paid to students studying in standard IX to XII for a maximum period of four years or till they complete XII standard, whichever event occurs earlier. The scholarship will be for academic year June to May.

3. The benefit is restricted to two children of the member covered. Both the children irrespective of gender based discrimination will be covered for scholarship.
4. If a student fails and is detained in the same standard, he will not be eligible for scholarship for the next year in the same standard.

It may be ensure that the bright and scholary students from weaver community getting benefits under MGBBY – Siksha Sahayog Yojana need to be brought to limelight so as to encourage the children of the other weaver families to emulate them.

5. 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.

6. No premium is charged either to the parent of the scholarship holder or to the nodal agency. It is an additional benefit given to the children of the parents covered under Mahatma Gandhi Bunkar Bima Yojana. If the premium under Mahatma Gandhi Bunkar Bima Yojana is not paid on annual renewal date in such case, the child shall not be eligible for scholarship.

Claim Procedure

The beneficiary of the deceased member will be required to furnish the original death certificate to the nodal agency who will arrange to forward the same along with the claim papers to LIC i.e.; the Branch which has originally finalised the insurance cover.

LIC will settle the claims by sending A/c Payee Cheque directly to the beneficiary; however, intimation to this effect has to be furnished to the State Government concerned and to the Office of the Development Commissioner for Handlooms.

In the case of accidental claim, police inquiry report will also be required to be submitted. The detailed procedure will be mainly on the lines of the procedure of Social Security Group Schemes of the LIC.

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