Home / Knowledge / News / Apparel/Garments / Injury insurance scheme on the anvil for B'desh RMG sector
Injury insurance scheme on the anvil for B'desh RMG sector
Oct '15
The International Labour Organization (ILO), Germany and the Government of Bangladesh will collaborate in the development of an Employment Injury Insurance (EII) Scheme for Bangladesh for the readymade garment (RMG) sector.

In a press release, the ILO said a Letter of Intent was signed in Dhaka on October 6 by Dr. Gerd Müller, Germany's Minister for Economic Cooperation and Development, Mikail Shipar, Secretary in the Ministry of Labour and Employment of Bangladesh and Srinivas Reddy, ILO Country Director for Bangladesh.

In the initial stages, the three signatories will work together on the design of a suitable EII scheme for the RMG sector. Legislative issues will be addressed and national institutional capacities to implement such a scheme developed. In later stages, a pilot scheme will be launched before being scaled up to run nationwide and extended to other industrial sectors.

“The Government of Bangladesh is committed to enhancing the safety and welfare of all workers in Bangladesh. By joining hands with the ILO and Germany our goal is to develop an Employment Injury Insurance Scheme that will benefit the lives of millions, support business and enhance the reputation of our industry worldwide,” Shipar said.

Srinivas Reddy, ILO Country Director for Bangladesh said, “A universal Employment Injury Insurance Scheme will benefit employees and employers alike. The support of Germany reflects the importance the international community places on developing social protection for workers and we encourage other partners to join us in this undertaking.”

ILO actively promotes policies and provides assistance to countries to help extend adequate levels of social protection to all members of society. The experience of setting up a mechanism to deliver compensation in the aftermath of the Rana Plaza tragedy highlighted the need for an Employment Injury Insurance (EII) Scheme to be established. Workers will receive payment in case of injury while employers will benefit from low-cost and no-fault accident compensation insurance for workers, the release said.

The ILO said an initial workshop was held in Dhaka in January 2015 to present the concept and principles of EII scheme to stakeholders. This was followed by an ILO mission to Dhaka in May and June 2015 to launch a feasibility study, the preliminary report of which has been completed. In July 2015, the Government formally requested the ILO Country Office in Bangladesh to directly coordinate any donor initiatives for establishment of an EII and to design a combined scheme for this purpose. As a result, ILO is cooperating closely with German organisations German Social Accident Insurance (DGUV) and GIZ in this regard. (SH)


Fibre2Fashion News Desk – India

Must ReadView All

Apparel/Garments | On 21st Oct 2016

China’s garment retail sales grow 7.2% in Jan-Sept ’16

Retail sales of garments, footwear, hats and knitwear of Chinese...

Mike Preston, executive director of the Arkansas Economic Development Commission (AEDC), signing MoU with Tang from Suzhou Tianyuan Garments company. Courtesy: Government of Arkansas

Apparel/Garments | On 21st Oct 2016

Suzhou Tianyuan to open $20 mn garment factory in US

Suzhou Tianyuan Garments company, a Chinese manufacturer of casual...

Textiles | On 21st Oct 2016

Pakistan’s textile exports fall 5.96% y-o-y in Q1 FY17

The value of textile and garment exports made by Pakistan decreased...

Interviews View All

Hugo Boss

'Hugo Boss works with carefully selected sourcing partners'

Siddharth Biyani
Mangalam Industries Pvt Ltd

‘The manufacturing sector is improving day-by-day, becoming better in...

Milind Khandwe
Hindoostan Innovation Centre

‘Modern technical textile is an indispensable tool for science and...

Mohammad Hassan
Biax Fiberfilm

About one in every 20 patients picks up an infection while hospitalised....

Eamonn Tighe
Nature Works LLC

Eamonn Tighe, Fibres and Nonwovens - Business Development Manager of...

Iago Castro Asensio
RCfil Distribuciones S.L.

Iago Castro Asensio, International Business Manager of RCfil...

Ritu Kumar
Label Ritu Kumar

‘Classics will return’ "There are a lot of people wearing western clothes ...

Prathyusha Garimella
Prathyusha Garimella

Hyderabad-based designer Prathyusha Garimella is known for blending...

Wendell Rodricks
Wendell Rodricks

"We should not compare India and the West. There are things we do that...

Press Release

Press Release

Letter to Editor

Letter to Editor

RSS Feed

RSS Feed

Submit your press release on


Letter To Editor

(Max. 8000 char.)

Search Companies

October 2016

October 2016

Subscribe today and get the latest update on Textiles, Fashion, Apparel and so on.


Browse Our Archives


Advanced Search