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KVIC Schemes

Khadi Karigar Janashree Bima Yojana Scheme

 Khadi & Village Industries Commission (KVIC) an autonomous body promoting Khadi and Village Industries for the purpose of providing rural employment. The KVIC, as a Social Security Measure to artisans engaged in the Khadi activity, introduced a Group Insurance Scheme captioned “Khadi Karigar Janashree Bima Yojana”. This is a unique scheme designed by Life Insurance Corporation of India (LIC) specifically for Khadi artisans and launched on 15th August 2003. The Scheme is centrally operated covering artisans throughout the country. The details are already circulated to all concerned. The insurance cover under the Scheme is renewable every year as well as expandable coverage of number of artisans year after year. This common communication by LIC of India & KVIC intends operational convenience for both organizations (KVIC & LIC) and effective implementation of the scheme based on past one year experience in administering the scheme.




1.      The Khadi & Village Industries Commission identified its field offices (State/Divisional Offices) for the purpose of operating the Scheme. Life Insurance Corporation of India has also identified its counter-parts (P&GS Units) to deal with each field office of KVIC. This system is developed to establish one to one contact. The detailed list of addresses of field Officers of both organizations is as per Annexure-I.

2.         Director, State/Divisional Office, KVIC will obtain list of artisans for covering under Khadi Karigar Janashree Bima Yojana from Khadi institutions affiliated to both KVIC and KVIBs and hand over to designated P&GS Units of LIC. State/Divisional Director countersigns these lists.

3.         The field office of KVIC will furnish a statement of artisans covered in the enclosed format (Annexure-II) to the Directorate of Khadi Coordination to collect/recover the share of premium of Khadi institutions as well as Khadi artisans concerned from any outgo to the institutions as was done in the past.

4.         The LIC of India agreed with KVIC for providing a cushion-time up to 31.10.2004 for inclusion of new artisans in the master policy taken effective from 15.08.2004.

5.         In the first week of November 2004, the State/Divisional Office has to confirm the final number of artisans for the purpose of settlement of premium to LIC of India as well as recovery of share of premium from Khadi institutions.

6.         The State/Divisional Offices are to furnish quarterly progress report as to the preferring of claims as well as settlement of claims in the format mentioned in the Annexure-III to the Directorate of Khadi Coordination. Similarly, the P&GS Units of LIC are needed to furnish similar progress reports to the Head Office, LIC (P&GS Department). These reports are to be submitted in the month of April, July, October and January. The Central Offices of LIC and KVIC will review the progress periodically.

7.         The pending claims in respect of artisans covered for the period from 15.08.2003 to 14.08.2004 are to be settled by the P&GS Units of LIC of India designated for this purpose during the year 2003-04.  State/Divisional Directors, KVIC will be required to contact such Units only for the purpose of settlement of pending claims.  The Director, State/Divisional Office may certify the lists of artisans for the purpose of settlement of claims wherever necessary.  P&GS Units should collect such certified lists from Director, State/Divisional Office of KVIC.   

8.         JOINT PUBLICITY:-

Publicity of the Scheme among Khadi artisans needs to be undertaken jointly by LIC and KVIC. The LIC of India will arrange to prepare the material for awareness programmes such as posters, leaflets etc. in regional languages.  The programmes are to be chalked out by field offices of both LIC and KVIC jointly. LIC of India may also participate in the exhibitions conducting by KVIC, in promoting their products particularly the Khadi Karigar Janashree Bima Yojana.

9.         In case the field office of LIC and/or KVIC finds any difficulty in implementing the scheme, may contact at Central Offices to the following addresses:-


LIC of India


Ms. S. S. Soman,

Dy. Secretary (P&GS),

LIC of India,


Jeevan Bima Marg,

Mumbai – 400 021. 

Tel. No. 022-56598581/22029940

Fax No. 022-22828853

Email :

Mr. V. G. Raut,

Assistant Director,

Khadi Coordination,

Khadi & Village Industries Commission,

3 Irla Road, Vile Parle (West),

Mumbai – 400 056.

Tel. No. 022 - 2 6715860

Fax No. 022 - 2 6715860

Email :



The claims in respect of artisans covered on 15.08.2003 should reach latest by 14.2.2005 to the LIC (P&GS Unit) concerned. The claims in respect of artisans covered on 15.08.2004 should reach latest by 14.2.2006 to the LIC (P&GS Unit) concerned.



Government of India through Social Security Fund subsidizes premium under Janasree Bima Yojana. Out of total premium, a 50% comes from that Fund. A built-in provision is available in the scheme for yearly review of the scheme.  Any surplus i.e. Premium – (Benefit + Administrative expenses of LIC), if available, 50% of the amount will go to the Social Security Fund and the remaining 50% will be refunded to KVIC or shall be adjusted towards payment of premium for prospective group.  It was agreed that the policy in force from 15 August 2003 to 14th August 2004, would be reviewed in the month of February 2005, as such KVIC has to intimate about all the claims before review.









Code No.

Name of the


Total No.

of Artisans

Total No. of Student beneficiaries


Share of Artisan

Share of Khadi Inst.

Share of KVIC






periodical progress report as to the preferring of claims

as well as settlement of claims





Name of the State

Death Claims preferred and settled for the Quarter I/II/III/IV

No. of

Death Claims


Nature of Claim


Claimed (Rs.)

No. of

Claims settled

Amount Settled (Rs.)

No. of Claims yet to be Settled





Name of the State

Educational Claims preferred and settled for the Quarter I/II/III/IV

Total No.

of Inst.

Total No.

of Children

No. of Educational Claims preferred

No. of Claims Settled

No. of Claims pending




IST                                         :           April to June

IInd                    :           July to September

IIIrd                                      :           October to December

IVth                   :           January to March