The Prime Minister, Narendra Modi launched a life insurance scheme, an accident insurance scheme and a pension scheme on May 9, 2015 with the aim of providing social security to the entire population and bringing financial inclusion in the country. There is low life and accident coverage and old age income security in the country and the launch of the Pradhan Mantri Jeevan Jyoti Bima Yojana (PMJJBY) and Pradhan Mantri Suraksha Bima Yojana (PMSBY) and Atal Pension Yojana (APY) aim to address this issue.
1. Make financial facilities like insurance and pension available to the poor and needy.
2. Financial inclusion of the poor in the development story of India.
3. Ensure that the poor have 'Shakti' and not 'Sahara'.
The three schemes introduced are -
Pradhan Mantri Suraksha Bima Yojana (PMSBY)
It will provide insurance cover in the event of death or disability due to accidents.
It is an annual renewable policy. It provides a cover of Rs. 2,00,000 for a premium of Rs. 12 per year.
It covers partial and permanent disability
Any person in the age group of 18-70 years with a savings bank account can apply for this scheme.
The policy can be bought from any public sector general insurance company or any general insurance firm that can offer the product on similar terms.
Pradhan Mantri Jeevan Jyoti Bima Yojana (PMJJBY)
This is a life insurance scheme that covers the unfortunate event of the policy holder's death due to any reason.
It is an annual renewable policy. It provides a cover of Rs. 2,00,000 for a premium of Rs. 330 per year.
This life insurance can be availed of by any person between 18-50 years with a savings bank account.
LIC or any other Life Insurance company can offer this product on similar terms.
Atal Pension Yojana (APY)
This is a pension scheme aimed at providing income and security for the aged in the unorganised sector.
Subscribers can opt for a fixed minimum pension of Rs. 1,000, 2,000, 3,000, 4,000 or Rs 5,000 per month. The pension amount depends on the contribution provided by the subscriber.
The subscriber can join the scheme between the ages of 18-40 years and so the contribution period will be 20 years or more. The subscriber needs to have a bank account. The subscriber will get the pension after he/she reaches the age of 60 years.
The government will also contribute towards the contribution of the scheme up to 50% of total contribution or Rs. 1000 for five years whichever is lower for people joining the scheme before December 31st, 2015 and do not have any social security scheme subscription and are not eligible to pay income tax.