Gig Workers Expose Zomato, Swiggy Insurance Gaps Amid Worker Strife
Overview
Gig economy platforms like Zomato and Swiggy collectively spent INR 100 Cr on gig worker insurance premiums last year. However, delivery partners report significant delays and outright denial of coverage for medical needs, sparking union protests and increasing pressure on companies to fulfill promised welfare benefits amidst evolving government regulations.
Insurance Promises Unfulfilled for Gig Workers
Zomato and Blinkit disbursed INR 100 crore in insurance premiums last year to cover their vast gig workforces. This figure emerged amidst a growing storm concerning the welfare of delivery personnel. Eternal CEO Deepinder Goyal stated that these premiums are company-borne, offering benefits including accident insurance up to INR 10 lakh, medical coverage of INR 1 lakh plus INR 5,000 for OPD, loss-of-pay insurance up to INR 50,000, and maternity insurance up to INR 40,000.
Union Rejects Platform Claims
However, worker unions paint a starkly different picture. The Telangana Gig and Platform Worker Union (TGPWA) highlighted the case of Mohammad Shahnawaz, a Zomato delivery partner injured in Hyderabad, who is allegedly still awaiting insurance coverage. TGPWA president Sheikh Salauddin criticized the platforms, stating that their insurance claims are void if urgent medical needs of injured workers are not addressed promptly. He pointed out a severe lack of cashless treatment options and the difficulty in securing timely medical care, forcing many workers into out-of-pocket expenditures during emergencies.
Regulatory Push and Platform Response
The government's draft guidelines under the Code on Social Security 2020 are intensifying scrutiny on delivery platforms. These guidelines aim to ensure life and health insurance benefits for platform workers. In response, Zomato announced efforts to register 6,000 delivery partners for government welfare schemes. Despite such initiatives, the number represents a small fraction of the nearly 4.7 lakh gig workers associated with Zomato and Blinkit.
Persistent Gaps in Coverage
Industry analysts note that existing laws do not mandate specific insurance coverage from platforms, beyond allocating a portion of turnover to social security funds. This leaves many workers vulnerable due to inadequate safeguards, low awareness, and structural barriers like irregular incomes. Union leaders continue to press for comprehensive health insurance, robust accident coverage, and pension benefits, advocating for the withdrawal of high-risk delivery models.
Future Outlook
The gig workforce in India is projected to expand significantly. Bridging the gap between promised insurance and actual delivery requires mandatory comprehensive policies, simplified awareness campaigns, and benefits not solely tied to active contracts. Without these reforms, the focus on rapid delivery continues to overshadow the fundamental need for worker security.
