Electric kettle not working with power light on?

I am using this Chinese electric kettle in my hostel for a couple of years now. all of a sudden it has stopped working. its power light turns on but it never heats up. I took it apart and can't seem to find any fuse or something that might need replacing. I did find some worn out pieces of the jacket that engulfs the heating element. but I am not sure if I should retire it just yet. any suggestions on how can I fix it?

Here are the pictures of the inside.