Karnataka’s insurance scheme for gig workers has recorded limited enrolment, with only 30,256 workers registered against an estimated workforce of 2.5 lakh to 3 lakh across the state. The programme, launched in September 2023, was designed to provide financial protection to platform-based workers in delivery, e-commerce, logistics and related services. Yet Labour Department data show that only seven claims have been registered so far, with ₹11.79 lakh disbursed in compensation.
The low registration numbers highlight the challenge of translating social-security announcements into benefits that workers can access in practice. The scheme offers ₹4 lakh in combined life and accident insurance, alongside support for permanent disability and accident-related hospital expenses. Officials have cited voluntary enrolment and limited cooperation from platforms as obstacles. At the same time, Karnataka’s newer gig-worker welfare legislation has introduced a broader framework for worker registration, aggregator obligations and welfare funding.
Key Takeaways
- Only 30,256 workers registered: Enrolment remains far below the state’s estimated gig-worker population.
- Seven claims recorded: Labour Department data show ₹11.79 lakh has been disbursed in compensation.
- ₹4 lakh insurance cover: The scheme combines ₹2 lakh in life insurance and ₹2 lakh in accident insurance.
- Additional accident benefits: Eligible workers may receive up to ₹2 lakh for permanent disability and reimbursement of up to ₹1 lakh in accident-related hospital expenses.
- Bengaluru leads registrations: The city accounts for 10,815 registered workers.
- Welfare law adds a broader framework: Karnataka’s 2025 gig-worker law establishes registration and welfare mechanisms, while legal challenges over the welfare fee remain unresolved.
Karnataka Gig Worker Insurance Scheme: Registration Figures
The state’s insurance programme has enrolled a small proportion of the gig workers it aims to protect. According to Labour Department data cited by Moneycontrol, 28,786 registered workers are from Karnataka, while 1,470 are from other states.
| Registration indicator | Reported figure |
|---|---|
| Total registered workers | 30,256 |
| Registered workers from Karnataka | 28,786 |
| Registered workers from other states | 1,470 |
| Registrations in Bengaluru | 10,815 |
| Estimated gig-worker population in Karnataka | 2.5–3 lakh |
| Insurance claims registered | 7 |
| Compensation disbursed | ₹11.79 lakh |
Source: Moneycontrol report citing Karnataka Labour Department data, published October 22, 2026.
The registration total remains well below the state’s estimated gig-worker population. However, the number of registrations alone does not establish how many eligible workers have been informed about the scheme, completed the application process or encountered problems with documentation.
The seven registered claims and the compensation disbursed are also separate measures from enrolment. The figures indicate limited recorded claims, but do not by themselves show whether the number reflects low awareness, low claim incidence, eligibility restrictions or difficulties navigating the process.
What Insurance Benefits Does the Scheme Offer?
Karnataka introduced the insurance scheme in September 2023 to provide a financial safety net for platform-based gig workers. It covers workers engaged in services such as food delivery, e-commerce and logistics, including eligible full-time and part-time workers.
The core insurance package is structured as follows:
| Benefit | Coverage |
|---|---|
| Life insurance | ₹2 lakh |
| Accident insurance | ₹2 lakh |
| Combined life and accident insurance | ₹4 lakh |
| Compensation for permanent disability due to an accident | Up to ₹2 lakh |
| Reimbursement of hospital expenses in accident cases | Up to ₹1 lakh |
Source: Karnataka State Gig Workers Insurance Scheme and published reporting.
The benefits are intended to reduce the financial impact of death, accidents and serious injuries for workers who may not have the same employment protections as salaried employees.
For delivery riders and other workers who depend on daily earnings, an accident can mean both medical expenses and a loss of income. Insurance can help address some of these costs, although it does not replace broader measures such as income support, health protection or pensions.
Eligibility conditions and claim documentation remain important. Workers should check the applicable scheme rules and official guidance to understand which incidents are covered and how to submit a claim.
Why Are Registration Numbers Low?
G Manjunath, additional labour commissioner for industrial relations and chairman of the Karnataka Platform-Based Gig Workers Social Security and Welfare Board, told Moneycontrol that the government had approached platforms and aggregators to encourage registration but had received a limited response.
He also said workers were being encouraged to enrol through the e-Shram and Seva Sindhu portals. The scheme’s voluntary registration model means that workers must take steps to enrol rather than assuming that their association with a delivery or mobility platform automatically provides insurance coverage.
Several practical factors may affect participation:
- Limited awareness: Workers may not know about the benefits or the process for claiming them.
- Registration friction: Workers may be unfamiliar with the relevant portals or the documentation required.
- Unclear eligibility: Some workers may be unsure whether part-time, occasional or multi-platform work qualifies.
- Platform coordination: Government access to accurate worker databases can affect outreach and registration.
- Perceived value: Workers may not prioritise enrolment if the benefits and claim procedures have not been clearly explained.
These are possible explanations, not confirmed findings for every unregistered worker. Establishing the principal reasons would require more detailed information from the government, platforms and worker organisations.
Bengaluru Accounts for the Largest Share
Bengaluru recorded 10,815 registrations, making it the largest contributor to the state’s total. The city is a major centre for app-based delivery, ride-hailing and e-commerce activity.
Its registration count also shows that the scheme has not yet reached all potentially eligible workers even in a large gig-economy market. Labour Department estimates cited in the report put the number of gig workers in Bengaluru at around two lakh.
The gap between estimated workers and registered beneficiaries suggests that more effective outreach may be needed. Information provided through platform onboarding, worker support centres and local-language communication could help eligible workers understand the benefits and application process.
However, improving registration is only one part of implementation. Workers also need clear guidance on claims, timely processing and information about how to appeal if an eligible claim is rejected.
Karnataka’s New Gig-Worker Law and Welfare Fee
Karnataka has introduced a broader legal framework through the Karnataka Platform Based Gig Workers (Social Security and Welfare) Act, 2025, which came into force on May 30, 2025. The legislation provides for a welfare board, registration of platform-based workers, unique identification and a social-security funding mechanism.
The framework is distinct from the insurance scheme launched in 2023. The insurance programme provides specified life and accident benefits, while the 2025 law creates a broader structure for worker registration and welfare measures.
The state has also introduced a welfare fee based on aggregator payouts, with the Labour Department fixing the levy at 1% subject to sector-specific caps. The fee is intended to help finance welfare measures for platform workers.
Some aggregators have challenged aspects of the law in court. According to Moneycontrol, the Karnataka High Court declined to stay implementation and directed food-delivery and e-commerce platforms, including Zomato, Swiggy, Blinkit and Zepto, to deposit the second-quarter welfare fee with the court registry. The final legal position remains subject to the court proceedings.
Worker organisations have urged the government to accelerate measures including health and accident insurance, maternity and income benefits, education assistance, emergency support and pensions. The wider debate is therefore not only about registering workers but also about how social protection will be funded, administered and delivered.
What Needs to Improve?
The low enrolment figures suggest that registration drives may need to be accompanied by simpler processes and more direct communication with workers. Platforms could play a role in informing eligible workers about available benefits, while the government could publish clearer instructions on eligibility, documentation and claim timelines.
A transparent public dashboard could also help workers understand how many people have enrolled, how many claims have been filed, how quickly they are processed and how much compensation has been paid. Publishing this information regularly would make it easier to distinguish an awareness problem from difficulties in the claims process.
The government would also benefit from consulting worker representatives and unions when refining the scheme. Workers’ feedback can help identify practical obstacles that may not be apparent from registration totals alone.
The Bigger Picture
Gig work has become an important part of India’s urban economy, supporting services ranging from food delivery and transport to logistics and online commerce. Yet workers may face irregular earnings, occupational risks and limited access to conventional employment benefits.
Karnataka’s insurance programme is an attempt to address part of that protection gap. Its low enrolment, however, illustrates that announcing a benefit is not enough: workers must know it exists, be able to register and have confidence that eligible claims will be processed.
The state’s newer welfare legislation could provide a broader institutional foundation, but its impact will depend on effective implementation, coordination with platforms, transparent funding and meaningful worker participation. Registration, claim settlement and actual benefit delivery will be the key measures to watch.
FAQs
1. How many gig workers have registered under Karnataka’s insurance scheme?
A total of 30,256 workers had registered, according to Labour Department data reported by Moneycontrol on October 22, 2026.
2. What insurance coverage does Karnataka provide to gig workers?
The scheme offers ₹2 lakh in life insurance and ₹2 lakh in accident insurance, providing combined coverage of ₹4 lakh. Additional provisions include up to ₹2 lakh for permanent disability due to an accident and reimbursement of up to ₹1 lakh in accident-related hospital expenses.
3. How many insurance claims have been registered?
The Labour Department data cited in the report show seven claims registered, with ₹11.79 lakh disbursed in compensation.
4. How can eligible workers register?
The government has encouraged registration through the Seva Sindhu portal and e-Shram. Workers should consult the official portals and scheme guidelines to confirm their eligibility and required documents.
5. What is Karnataka’s Gig Workers Act, 2025?
The Karnataka Platform Based Gig Workers (Social Security and Welfare) Act, 2025, establishes a broader framework for worker registration, a welfare board and social-security funding. It is separate from the state’s 2023 insurance scheme.
Looking Ahead
Karnataka’s immediate challenge is to make its existing insurance benefits accessible to a much larger share of eligible gig workers. Improving awareness, simplifying registration and explaining the claims process could help address the gap between the state’s estimated workforce and the number of enrolled beneficiaries.
The longer-term test will be whether the 2025 welfare framework translates into reliable, measurable benefits. As legal questions around the welfare fee continue, the state will need to demonstrate that registration systems, funding arrangements and worker consultations lead to timely support for people who depend on platform-based work.
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