GOVERNMENT OF TAMILNADU

HANDLOOMS, HANDICRAFTS, TEXTILES AND KHADI (D2) DEPARTMENT

G.O.Ms.No.114, dated 02.06.1998

(Vegudhganya, Vaigasi, 19, Thiruvalluvar Aandu 2029)

Weavers Cooperative Societies – Tamilnadu Cooperative Handloom Weavers Insurance Scheme – Implementation of "Self Insurance Scheme" – Enhancement of Insurance coverage from Rs.25,000/- to Rs.35,000/- Orders Issued.

Read:

1. G.O.Ms.No.1009, Industries, Dated 27.08.1975
2. G.O.Ms.No.111,HHT&K Department, Dated 12.07.1996
3. G.O.Ms.No.165, HHT&K Department, Dated 18.09.1996
4. From the Joint Development Commissioner for Handlooms, Ministry of Textiles, Government of India, Letter dated 27.11.1997
5. Government Letter No.9543/D2/97-16, Dated 10.03.1998, addressed to Government of India.
6. G.O.Ms.No.59,HHT&K Department dated 27.03.1998
7. From the Director of Handlooms and Textiles Lr.No.28579/97/C1, dated 06.05.1998.

******

ORDER:

The Government in their order sixth read above, constituted a High Level Committee to study the problems confronted by the weavers in Tamilnadu and requested to submit its report within a month. Accordingly, the Committee submitted its report which was placed before the Cabinet. Based on the decision of the Cabinet , the Hon’ble Chief Minister announced on the floor of the Assembly on 30.04.1998 several concessions to the Handloom Industry. One among them is that the insurance coverage for Handloom weavers will be enhanced from Rs.25,000/- to Rs.35,000/-

2. The Savings and Security Scheme for Cooperative Handloom Weavers which contemplates the subscription of premium to the Life Insurance Corporation, is one of the Welfare Schemes to the Handloom Weavers who are under the Cooperative fold and this scheme is in force from 1975. From the year 1992-93 onwards, the Government of India are participating in the scheme with contribution of 1/3 of the total premium (restricted to Rs.40./- per weaver) as their share. The remaining 2/3^rd portion is paid by the Government of Tamilnadu. Under this scheme, on the death of a weaver member before 60 years of age, his legal heir is paid Rs.25,000/- as insurance coverage.

3. In their letter 4^th read above, the Government of India informed that the policy of providing insurance cover to handloom weavers through Life Insurance Corporation stands discontinued. Instead a New insurance scheme through United India Insurance Company is proposed to be implemented by Government of India. As there is no life Insurance under the New Insurance Scheme of Government of India, It has been decided by this Government on it to participate in the new scheme. It has also been decided to discontinue for existing scheme with Life Insurance Corporation and to go in for a "Self Insurance Scheme".

4.Based on the announcement made by the Hon’ble Chief Minister, the Director of Handlooms and Textiles has sent necessary proposals.

5.The Government have examined the proposals of Director of Handlooms and Textiles carefully and issue the following orders:-

1. A "Self Insurance Scheme" for Tamilnadu Cooperative Handloom Weavers be implemented immediately.
2. In order to implement the Shcme, a "Corpus Fund" be constituted;
3. The Board formed to administet the Old Age Pension Scheme shall administer this fund also. The administration of this fund should be done separately by maintaining a separate account and should not be clubbed with each other.
4. An amount of Rs.1,00,00,000/- be sanctioned for the Corpus Fund every year for settlement of Insurance Claims and deposited in Tamilnadu State Apex Cooperative Bank.
5. The amount towards insurance coverage per weaver be enhanced from Rs.25,000/- to Rs.35,000/- with effect from 01.05.1998.

2. This Order issues with the concurance of Finance Department vide its U.O.No.39771/Ind/98, Dated 02.06.1998.

(BY ORDER OF THE GOVERNOR)

JAYANTHI

SECRETARY TO GOVERNMENT