A labour card is an official document issued by the Labour Department of a state government to workers in the unorganized sector. It serves as identity proof for availing various government welfare benefits. Labour cards are usually given to workers who are involved in construction, agriculture, beedi making, mining, loading-unloading, and other forms of manual work. There are two types of labour cards:
- Construction Labour Card – For workers engaged in construction-related activities.
- Unorganized Labour Card – For workers involved in other informal sectors.
The labour card ensures that the worker is registered with the Labour Welfare Board and is eligible for benefits such as pension schemes, health insurance, education support for children, housing assistance, and most importantly, financial assistance during emergencies, including death and accidents.
The ₹2 Lakh Assistance Scheme
The ₹2 lakh assistance refers to the insurance or compensation amount given to labour card holders or their families under various schemes managed by the Labour Welfare Board or insurance partnerships like the Pradhan Mantri Suraksha Bima Yojana (PMSBY) and others. Here’s how the scheme typically works:
- Accidental Death: If the registered labour card holder dies in an accident, the nominee or family members receive ₹2 lakhs as compensation.
- Permanent Disability: In case of total disability due to an accident, the labourer is entitled to ₹2 lakhs.
- Partial Disability: A compensation of up to ₹1 lakh may be given depending on the severity of the disability.
These benefits are designed to support the worker’s family in times of crisis and are a significant part of the social security net for unorganized workers.
Eligibility Criteria
To be eligible for the ₹2 lakh benefit, the labourer must meet the following conditions:
- Valid Labour Card: The worker must have a registered and active labour card.
- Work Experience: The labourer should have been engaged in registered work for a minimum number of days as specified by the Labour Department (usually 90–120 days a year).
- Timely Renewal: The labour card must be renewed regularly and must be active at the time of the incident (death or accident).
- Age Limit: Generally, the age of the worker must be between 18 to 60 years.
Required Documents
To claim the ₹2 lakh assistance, the following documents are usually required:
- Copy of the Labour Card
- Aadhar Card and PAN Card
- Bank Passbook or Cancelled Cheque
- FIR or Accident Report (in case of accidental death)
- Death Certificate (for death claims)
- Medical Certificates (for disability claims)
- Nominee’s ID and relationship proof
- Application form from the Labour Department
These documents are submitted to the local labour office or online, depending on the state’s procedures.
Application Process
The process for applying for the ₹2 lakh assistance is straightforward:
- Visit the Labour Office: The nominee or the affected worker must go to the nearest labour office.
- Form Submission: Fill out the prescribed application form for compensation.
- Document Verification: Submit required documents. The Labour Welfare Board will verify all documents and details.
- Field Inspection: In some cases, field officers may verify the incident or the applicant’s status.
- Approval and Disbursement: Once verified, the amount is directly transferred to the bank account of the nominee or the applicant.
Some states also allow online application through official labour welfare board portals.
Government Schemes Linked with Labour Cards
The ₹2 lakh assistance is sometimes merged or aligned with national or state-level schemes such as:
- Pradhan Mantri Suraksha Bima Yojana (PMSBY) – A central government scheme that provides ₹2 lakh coverage at a minimal annual premium.
- Building and Other Construction Workers (BOCW) Welfare Board Schemes – These are state-specific and provide similar insurance coverage and benefits.
- Chief Minister’s Relief Fund Schemes – In certain states, accidental deaths of labourers are compensated under the CM’s special schemes.
These schemes are integrated to maximize coverage and minimize overlaps.
Importance of This Financial Support
For workers in the unorganized sector, life is uncertain and often financially insecure. Most labourers do not have savings, pensions, or insurance. The ₹2 lakh assistance scheme acts as a lifeline in emergencies. Here’s why this benefit is crucial:
- Financial Security for Families: In the event of the worker’s death, the amount helps the family survive temporarily.
- Motivation to Register: It encourages workers to register under government programs.
- Reduces Exploitation: Formal documentation through labour cards makes workers less vulnerable to exploitation.
- Improves Living Conditions: Other associated schemes that come with the labour card enhance workers’ access to education, healthcare, and housing.
Challenges Faced by Beneficiaries
Despite the benefits, some challenges persist:
- Lack of Awareness: Many workers are unaware of their entitlements or the procedures involved.
- Bureaucratic Delays: Processing of applications can be delayed due to administrative inefficiencies.
- Corruption: In some regions, middlemen exploit workers by demanding bribes for services.
- Technical Difficulties: Online applications can be difficult for workers with low digital literacy.
The government is working on improving transparency and awareness through local campaigns and digital portals.
Application
Conclusion
The provision of ₹2 lakh compensation to labour card holders is a significant step toward ensuring social security for workers in India’s unorganized sector. It not only provides financial relief in times of tragedy but also promotes the formalization of labour and the dignity of work. To fully realize the benefits of this scheme, there must be continued efforts to raise awareness, simplify the application process, and eliminate bureaucratic hurdles.
As the backbone of the Indian economy, labourers deserve recognition, protection, and support. This scheme is a vital move in that direction, ensuring that those who build the nation are not left behind when they face unforeseen challenges. With better implementation and outreach, such benefits can bring transformative changes to the lives of millions of workers and their families across the country.