Are gig workers eligible for group health insurance in India?

Gig and platform workers in India are recognised for statutory social security cover under the Code on Social Security 2020, which came into force on 21 November 2025. Chapter IX of the Code requires aggregators (digital marketplaces connecting service buyers with providers) to contribute 1% to 2% of their annual turnover, capped at 5% of payments to gig workers, to a dedicated Social Security Fund. Gig workers on their own are not typically eligible for the employer's group health insurance, since IRDAI group policies still require a formal employer-employee relationship as defined under the Insurance Act 1938. Gig workers can access accident insurance, health and maternity benefits, and old-age protection through central and state government-notified schemes under Chapter IX of the Code.

What changed on 21 November 2025 for gig workers?

The four labour codes came into effect on 21 November 2025, and the Code on Social Security 2020 is one of them. The Code consolidates nine earlier social security laws, including the Employees' State Insurance Act 1948, the Employees' Provident Funds Act 1952, and the Payment of Gratuity Act 1972. It formally defines a gig worker (a person who performs work outside the traditional employer-employee relationship) and a platform worker (a gig worker whose engagement is mediated by an online platform such as Swiggy, Zomato, Uber, or Urban Company). Aggregators listed in Schedule 7 of the Code — ride sharing, food and grocery delivery, logistics, e-marketplaces, and other categories — must contribute to the Social Security Fund.

Can a gig worker be added to the employer's group mediclaim?

Under IRDAI group health insurance rules, the insured members must have a formal employer-employee relationship with the policyholder. Gig workers engaged on task-based contracts do not satisfy this test and typically cannot be added to the employer's group mediclaim policy. Some insurers offer group personal accident (GPA) cover for consultants and independent contractors under a separate contractor policy, which is different from group health mediclaim. A gig worker functionally acting as an employee (fixed reporting hours, direct supervision) may qualify as an employee for insurance purposes, but this requires factual and contractual consistency rather than paper reclassification.

What is the aggregator's obligation under the Code?

Aggregators must contribute between 1% and 2% of their annual turnover to the Social Security Fund, capped at 5% of the amount paid or payable to gig and platform workers. The rate within the band is set by central government notification. Draft rules issued in December 2025 propose eligibility for benefits after 90 days of engagement with a single aggregator, or 120 days across multiple aggregators, in a financial year. Registration is via Aadhaar-linked portals such as e-Shram, which allow benefits to remain portable across aggregators and states.

What benefits are available to registered gig workers?

Once registered under Chapter IX, gig workers become eligible for government-notified welfare schemes covering life and disability cover, accident insurance, health and maternity benefits, and old-age protection. Scheme design and benefit levels are set through central and state notifications. Funding comes from the Social Security Fund (aggregator contributions), central and state government grants, and CSR contributions under Section 135 of the Companies Act 2013. As of early 2026, specific benefit amounts and settlement processes remain subject to state-level notification.

How do IRDAI group health insurance rules and the Social Security Code interact?

The Code on Social Security 2020 does not amend or override IRDAI's Insurance Products Regulations 2024 or the Master Circular of 29 May 2024. IRDAI-regulated group health mediclaim policies remain restricted to formal employer-employee groups (minimum 7 employees). The Code creates a parallel welfare framework for gig and platform workers, funded by aggregators and administered through central and state government schemes.

How Plum handles cover for gig-hybrid teams

Plum works with startups and mid-market companies that operate a mix of full-time employees and gig or contract workers. For the employee segment (7 or more full-time staff), Plum places group health insurance with an IRDAI-registered insurer across ICICI Lombard, HDFC ERGO, Bajaj General Insurance, Star Health, Niva Bupa, and Aditya Birla Health Insurance. For gig and contract workers, Plum offers group personal accident cover and voluntary top-up options that workers can enrol in and pay for themselves. Median pre-authorisation TAT for the employee segment is 45 minutes and claims NPS is 79.

Frequently asked questions

Are freelancers eligible for group health insurance in India?

Freelancers engaged on task-based contracts without an employer-employee relationship are typically not eligible for group health mediclaim. They may be eligible for group personal accident cover under a contractor policy, or they can register under Chapter IX of the Code on Social Security 2020 for aggregator-funded welfare benefits if they work through a platform.

Do gig workers need to register on e-Shram?

Yes, to access statutory social security benefits under the Code on Social Security 2020. e-Shram is the central Aadhaar-linked registration portal; some states operate parallel portals that feed into the national database.

Can a company voluntarily buy group health insurance for its gig workforce?

Some insurers offer contractor or gig-worker group policies as a separate product line, though these are underwritten differently from employee group mediclaim and may have lower sum-insured limits and higher premiums per person.

What is the difference between gig workers and platform workers under the Code?

A gig worker is any person working outside a traditional employer-employee relationship. A platform worker is a specific subset who access work through an online platform. All platform workers are gig workers, but not all gig workers are platform workers.

Can gig workers claim tax deductions under Section 80D?

Yes, for premiums they pay personally out of their own income. Section 80D deduction is available up to ₹25,000 for self, spouse, and children under 60, plus ₹25,000 for parents under 60 (₹50,000 if parents are senior citizens), under the Old Tax Regime only.