A majority of India’s population has been living without any accidental, health and life insurance for a long period of time. Employees of the unorganised sector, which make up 88% of the total labour force of 47.29 crore, are not protected under any formal pension provision.
This issue was highlighted in the Budget 2015-16 and three social security schemes were proposed. These three security schemes are based on the Jan Dhan Yojana platform to protect the citizens of India at the time of illness, accidents or old age.
After the success of the Pradhan Mantri Jan Dhan Yojana, the Government of India proposed to work towards creating a universal social security system for all Indians, especially the poor and the underprivileged and the labourers working in the unorganised sector, using bank accounts as the basis for launching the schemes.
The three social security schemes under the Jan Dhan se Jan Suraksha are:
Pradhan Mantri Jeevan Jyoti Bima Yojana
A yearly life insurance scheme that can be renewed from year to year and offers coverage for death. Since it is for death cover only, only the nominee will benefit from the scheme. There is no life insurance component in this plan. The policy offers life insurance of Rs 2 lakh at a premium cost of Rs 330 per year. As per the data calculated and studied by the government, 3.46 crore people have enrolled so far and Rs 1,390.42 crore claims have been approved and paid
Atal Pension Yojana
The Atal Pension Yojana is a scheme that is centred on the unorganised sector. Launched in 2015, the scheme is a substitute for Swavalamban Yojana NPS Lite. It is a periodic contribution that guarantees a hard and fast month-to-month pension of Rs 1,000, Rs 2,000, Rs 3,000, Rs 4,000 or Rs 5,000, after completing the age of 60. The authorities contribute 50% of the beneficiary premium (as much as Rs 5,000) for five years. As of now, the scheme has been subscribed to 61.71 lakh people.
PM Suraksha Bima Yojana
Launched on May 9, 2015, the scheme is aimed towards supplying coverage to the bulk of the Indian population. The social safety scheme gives the insurance of Rs 2 lakh in case of accidental dying and incapacity for Rs 12 per annum. The policy plan may be renewed annually. According to the latest findings of the authorities data, over 10.97 crore citizens have to this point enrolled withinside the plan. As of now, claims well worth Rs 232.32 crore has already been paid.
The policies under the Jan Dhan se Jan Suraksha will provide much-needed access to affordable insurance cover for personal accidents and life cover to the vast majority of workers in India that at the moment do not have convenient and systematic financial facilities for this nature. This step will result in great improvements in the long run and help in improving insurance awareness and insurance penetration/ density in the country. Jan Dhan se Jan Suraksha ensures the financial security and financial inclusion and holistic development of the citizens of India.