The main object of the scheme is to provide relief to the families of unorganized workers in case of death or disability of the unorganised worker leaving the families in great distress.
All India statistics indicate that Andhra Pradesh is one of the States with large number of accidents. The death or disability due to accident of an unorganized worker results in misery to his family and hardship caused by reduced earnings and medical and other expenditure relating to the accident. Hence, there is every need to provide accident death and disability insurance to the worker towards social security. Further, even natural death of an unorganized worker results in undue hardship to the family members left by the worker who need to be provided some relief.
Government had already implemented social security scheme to the transport drivers in the unorganized sector on pilot basis and on the working experience of the said scheme, it is felt appropriate to extend the social security scheme to all unorganized workers in the State with certain modifications to provide disability coverage also.