In 2025, India’s gig economy is booming — but for lakhs of Ola and Uber drivers and delivery partners working for Swiggy and Zomato, one crucial question continues to linger:
Are gig workers truly protected by insurance?
While platforms offer some insurance coverage, the ground reality reveals gaps, delays, and confusion that leave many gig workers exposed during times of crisis. This blog explores the concept of aggregator liability, why it falls short, and what can be done to ensure proper protection for those driving India’s digital economy forward.
What Is Aggregator Liability?
Aggregator liability refers to the legal and financial responsibility that gig platforms like Ola, Uber, Swiggy, and Zomato bear when their partner workers face accidents, injuries, or fatalities during duty hours.
These companies usually offer:
- Accidental insurance
- Medical coverage during delivery or ride time
- Hospitalization benefits for emergency situations
At first glance, this might seem like a safety net. But basic is the keyword — and basic doesn’t always mean sufficient.
What Do Ola, Uber, Swiggy, and Zomato Actually Offer?
Here’s what most major gig platforms currently provide:
- Ola: Offers accident insurance for drivers during active duty hours
- Uber: Ties up with insurance providers to offer death and medical cover
- Swiggy and Zomato: Provide accidental and hospital coverage during delivery hours
However, these policies come with critical limitations:
- Valid only during logged-in time
- No coverage for pre/post-shift accidents
- Exclusion of long-term disability or income loss
- Lack of clarity around claim procedures
Why Gig Workers Are Still Vulnerable
Despite the presence of these insurance policies, gig workers continue to face major risks:
- No general health insurance beyond accidents
- No income protection for downtime due to illness
- No retirement or life insurance benefits
- Complex and delayed claims process
- No legal help or emergency support system
Given that many of these workers are on the road for 10–14 hours a day, their exposure to risk is far higher than most salaried employees — yet their protections are minimal.
The Awareness Gap
A key issue is lack of awareness. Most gig workers either assume they’re fully insured or don’t understand the policy at all. This results in:
- No knowledge of what is covered and what’s not
- Inability to file or follow up on claims
- No direct contact or support during emergencies
- Requirement of FIRs or police documents, delaying claims
Simply put, the system is neither transparent nor user-friendly.
Can Gig Workers Rely on Aggregator Insurance Alone?
The simple answer is no. While aggregator liability is a starting point, it is nowhere near enough.
If we are serious about protecting India’s gig workers, we need:
- Comprehensive health insurance policies
- Income replacement options for accident or illness downtime
- Simple and accessible claim systems
- Mandatory disclosure of insurance terms in local languages
These are not just “add-ons” — they are essentials for the livelihood and dignity of gig workers.
What Needs to Be Done?
1. Government Action
State and central governments must bring gig workers under formal labour laws and include them in social security schemes. This includes ESI, PF, and health insurance plans.
2. Platform Accountability
Gig platforms should be transparent about what insurance covers and what it doesn’t. This information must be shared in simple language during onboarding and updated regularly.
3. Independent Insurance Options
Gig workers should also explore private insurance options such as:
- Personal accident plans
- Health insurance
- Term life insurance
Several app-based insurance providers now offer affordable and flexible policies designed specifically for gig workers.
4. Unions and Collectives
Emerging gig worker unions play a powerful role in:
- Spreading awareness
- Demanding better protections
- Offering legal support during disputes
Joining such collectives boosts bargaining power and creates a stronger voice for gig economy workers.
Final Thoughts
In today’s fast-paced gig economy, the risk of accident, illness, or job loss is not rare — it’s expected. While platforms like Ola, Uber, Swiggy, and Zomato offer basic insurance, it is only one part of the puzzle.
For India’s gig workforce to be truly protected, we need:
- Stronger laws
- Broader insurance inclusion
- Transparent communication
- Better awareness and independent options
Insurance is not a luxury for gig workers — it’s a basic need. And it’s time we stopped treating it like a bonus.
Need Legal Support?
If you’re a gig worker in Bangalore facing issues with insurance claims, employment rights, or lack of protection, consult an experienced Labour Rights Lawyer in Bangalore. These legal professionals can help you understand your rights, fight unfair claim denials, and push for better protection under Indian law.
Disclaimer:
The information provided in this article is for general informational purposes only and does not constitute legal advice. While efforts have been made to ensure the accuracy of the content, Bisani Legal and its representatives are not responsible for any errors or omissions, or for any outcomes resulting from reliance on this information. Readers are advised to consult a qualified legal professional for specific legal guidance related to their individual property matters. The use of this article does not establish an attorney-client relationship between the reader and Bisani Legal.
Published by: Mr. Saket bisani
Date: 04/08/2025
