When you go looking for a job, there are many factors that you consider. For example, the location of the office, the salary package, and the company’s reputation. Along with that, you also look at a major benefit that many companies offer as a perk to attract the best talent—health insurance. Yes, given how the prices of healthcare services are going up, having health insurance offered by the employer can help anyone avoid massive financial losses during medical emergencies. But this perk is not for everyone. In all likelihood, the person who brought your food package from the restaurant or your cab driver doesn’t have it. Well, there’s good news for them. As per the Budget 2025, gig workers will now be eligible for the Ayushman Bharat Pradhan Mantri Jan Arogya Yojana (AB-PMJAY).Who are gig workers?
Many people struggle to find jobs. Take the example of an engineering student who has failed to get a job that pays him a decent amount. He realises that instead of sitting idle, he should work as a cab driver during the day and give tuition in the evening. When a person does this kind of short-term, flexible job, such as online delivery services or freelance work, they are called gig workers. The rise of digital platforms has also made it possible to look for new opportunities for flexible work.The gig workforce is gradually becoming a pillar of India’s new-age economy. The announcement made during the budget is definitely a transformative step taken to recognise the contribution made by the gig workers.
What is AB-PMJAY?
The medical advancements made over the last few decades have also increased the cost of healthcare facilities. While people from upper-middle and upper classes with well-paying jobs can easily afford to go to private hospitals for treatment, people from lower-income groups don’t have that luxury. And government hospitals are always struggling with the lack of manpower and resources leading to long queues for treatment. This is where a plan such as Ayushman Bharat Pradhan Mantri Jan Arogya Yojana (AB-PMJAY), launched in 2018, comes into the picture.
The key benefits of AB-PMJAY are:
- Provides free treatment for up to Rs 5 lakh per year for every eligible family for secondary and tertiary hospitalisations.
- Managed by the National Health Authority (NHA), it offers immediate benefits with no waiting period.
- What makes it commendable is that the coverage also includes pre-existing conditions.
- Registration is simple. Gig workers can access the benefits based on their registration on the e-Shram portal and their Universal Account Number (UAN).
Challenges faced by gig workers
In her budget speech, Finance Minister Nirmala Sitharaman said, “Gig workers of online platforms provide great dynamism to the new-age services economy. Recognising their contribution, our government will arrange for their identity cards and registration on the e-Shram portal. They will be provided healthcare under the PM Jan Arogya Yojana.” One may wonder why gig workers needed the benefit announced. Well, the answer lies in the many challenges they face. Here are a few of them:
- Accessibility: The gig economy is highly dependent on reliable internet services because that’s where gig workers find work. Now, because of its urban-centric nature, gig workers have to work in big cities and towns, where the cost of medical services is quite high.
- Income insecurity and lack of benefits: Platform workers are paid per task. This means their income can fluctuate massively. The companies that use their services don’t provide them benefits, including minimum wages, working hours, health insurance, employee provident fund, etc. Imagine, the financial losses they will incur if suddenly they have to get hospitalised, which will require them to stay out of work for a few days.
- High risk of ailments and injuries: Most of the deliveries are done over bikes while the gig workers carry big bags. Then there are bike and cab drivers. Not only are these jobs exhausting, both physically and mentally, but there are also high chances of accidents causing injuries.
Bridging the gap
The move to extend AB-PMJAY benefits to gig workers aims to bridge the gap in India’s healthcare system. As per NITI Aayog, gig workers are the “missing middle” people who are not so poor to be eligible for government-funded health insurance but not rich enough to buy health insurance themselves. Hence, to ensure medical expenses don’t dent their savings in the absence of an individual health insurance plan, the government extended this coverage to gig workers.
The need for some form of social security remains. Thanks to gig workers, we are able to live our lives comfortably. The budget announcement marks a transformative step in recognising the invaluable contributions of gig workers.
Note: The above information is for illustrative purposes only. For more details, please refer to the policy wordings and prospectus before concluding the sales.
Disclaimer – The above content is non-editorial, and TIL hereby disclaims any and all warranties, expressed or implied, relating to it, and does not guarantee, vouch for or necessarily endorse any of the content.
