Gig workers — from delivery executives to ride-hail drivers — form the backbone of India’s urban economy, but often lack access to affordable mobility and formal social security. In a progressive step, the Tamil Nadu government has rolled out a ₹20,000 electric scooter subsidy along with group accident insurance up to ₹5 lakh, directly targeting the needs of this growing workforce.
The move is being hailed as a model that could be replicated across states to improve the welfare, safety, and productivity of gig workers.
The E-Scooter Subsidy: Mobility with Savings
Under the new scheme, 2,000 registered gig workers will receive a one-time subsidy of ₹20,000 each to buy new electric scooters. The state has allocated ₹4 crore for this initiative.
- Purpose: Reduce transportation costs and dependence on fuel-based vehicles, while promoting green mobility.
- Additional Support: The government also plans to set up rest lounges in Chennai, Coimbatore, and other key cities to provide gig workers with recharging stations and safe resting spots between shifts.
For a typical food delivery partner, this subsidy can cut daily fuel expenses by more than half, translating into higher net earnings.
The Insurance Shield: ₹5 Lakh Cover at ₹105/year
Alongside mobility aid, Tamil Nadu has sanctioned group accident insurance for 50,000 gig workers at a premium of just ₹105 per annum.
Coverage includes:
- ₹5 lakh for accidental death or total disability.
- ₹2.5 lakh for partial disability (e.g., loss of limb).
- ₹1.25 lakh for other permanent disabilities.
This scheme highlights the importance of insurance rider benefits tailored to specific occupational risks, which we have detailed in our article: Rider Benefits in Insurance Plans – Explained for 2025.
The scheme has been budgeted at around ₹66.95 lakh, with procurement to follow transparent tender norms. For gig workers, many of whom are sole breadwinners, this offers a critical safety net at a negligible cost.
Why It Matters
Gig work offers flexibility but comes with high vulnerability — no fixed income, no employer-provided benefits, and high exposure to road accidents. This combined approach of mobility subsidy + insurance protection addresses two of their biggest challenges:
- Reducing daily operating costs — by switching to EVs.
- Protecting income & family security — via low-cost accident coverage.
If implemented effectively, the model could enhance worker retention for gig platforms and boost overall service quality for consumers.
Related: India’s Insurance Industry Set to Double to ₹25 Lakh Crore by 2030
Challenges on the Ground
- Low awareness: only about 300 out of 1,500 eligible gig workers have registered.
- Administrative delays: Workers often face documentation and verification bottlenecks.
- Infrastructure gaps: EV adoption requires reliable charging stations and easy maintenance access.
Labor experts also point out the need for long-term measures like pension schemes, ESI coverage, and regulated working hours to truly uplift this sector.
Could Other States Follow?
Given the growing size of India’s gig economy — projected to reach 23.5 million workers by 2030 — states like Karnataka, Maharashtra, and Delhi could adopt similar programs.
Key recommendations for scaling:
- Integrate subsidies with state EV policies.
- Mandate insurance enrollment through gig platforms at sign-up.
- Run multi-language awareness campaigns to boost uptake.
Tamil Nadu’s e-scooter subsidy and insurance scheme is more than a welfare measure — it’s an investment in the efficiency, safety, and dignity of gig workers. If other states replicate and refine this model, India’s gig economy could see a significant boost in both productivity and worker well-being.
Source Links:
Navbharat Times | Times of India
Share this story on Facebook, Twitter, and LinkedIn to spread awareness about gig worker welfare initiatives.
