For temporary sustenance measures for retrenched employees the corporate can buy the Ashrya bima yojana launched by New India assurance, national insurance company, oriental insurance company and united India insurance.
In this cover the policy offers compensation which is worth 30% of the average pay drawn by the retrenched employee for 12 months maximum or until the retrenched employee finds another job.
In this policy the premium cover is borne by the company and from the employees a mere 5% of the annual wages are deducted from all the workers earning below Rs. 10,000. This policy cover can be bought under the Industrial Act or the Factory Act by the registered company.
Ashrya bima yojana means a scheme covering for those workers who have lost their jobs.
For kissan credit card holders in personal accident insurance scheme the insurance cover is for Rs. 50,000/- and accidental death and partial disability is Rs. 25,000/-. The scheme holders cover up to an age of 70.
This policy is helpful for those workers who have to support their family member until he finds another job. By introducing such policy the company not only helps the person in distress but also doing something good for the society. This policy administers “No profit no loss” basis. The policy provides compensation to the workers of up to 30% of the last drawn salary for a period of one year or until he finds a suitable job during the tenure.