The government of India is working on a social security scheme that will provide pension, medical and unemployment coverage as well as insurance against death and disability to all the workers employed in the unorganised sector of the economy.
This scheme will also include those workers who are not covered by the Employees’ Provident Fund Organisation or EPFO and the Employees’ State Insurance.
In order to progress further towards creating a universal security system for all the citizens of India, with more emphasis on the underprivileged population, the Government of India launched the Social Security Schemes related to the Insurance and pension sector in the budget for 2015-16.
The social security schemes launched are:
- Pradhan Mantri Jeevan Jyoti Bima Yojana
- Atal Pension Yojana
- Pradhan Mantri Suraksha Bima Yojana
Pradhan Mantri Jeevan Jyoti Bima Yojana
The Pradhan Mantri Jeevan Jyoti Bima Yojana is available to citizens that are between the ages of 18 and 50 years. They should have a bank or a post office account that permits them to enable or join auto-debit. The primary Know Your Customer or KYC would be done by the Aadhaar card.
The life cover of Rs 2 lakhs is available for a period of one year starting from the 1st of June and ending on the 31st of May which is renewable. The coverage of risk under the Pradhan Mantri Jeevan Jyoti Bima Yojana is for Rs 2 lakh in case of death of the insured due to any reason. A premium of Rs 330 per annum will be auto-debited in one instalment from the subscriber’s bank or post office account as per the option given by him on or prior to the 31st of May of each annual coverage period under the scheme.
The scheme is offered by the Life Insurance Corporation of India and all the other life insurers that are offering the product on similar terms and conditions with the necessary approvals and tie up with post offices and banks for the same purpose.
Atal Pension Yojana
The Atal Pension Yojana or APY was implemented with effect from the 1st of June, 2015. The main objective of the scheme is to provide monthly pensions to eligible subscribers that are not covered under any of the organised pension schemes. The Atal Pension Yojana is open to every bank and post office account holder between the age group of 18 to 40 years. Any subscriber can opt for a guaranteed pension of Rs 1000 to Rs 5000 receivable at the age of 60 years.
Pradhan Mantri Suraksha Bima Yojana
The Pradhan Mantri Suraksha Bima Yojana is available to citizens who are between the ages of 18 and 70 years. They should also have a post office or bank account and have to give permission to join or enable auto-debit on or prior to the 31st of May for the coverage period starting from the 1st of June to the 31st of May on an annual renewal basis. The primary Know Your Customer or KYC would be the Aadhaar card.
The risk coverage under the Pradhan Mantri Suraksha Bima Yojana is Rs 2 lakh for death by accident and full disability, whereas, Rs 1 lakh for partial disability. The premium to be paid is Rs 12 per annum which will be automatically deducted from the post office or bank account of the subscriber in one instalment.
The Pradhan Mantri Suraksha Bima Yojana is being offered by Public Sector General Insurance Companies or any other General Insurance Company that is offering the product on the same terms and conditions with necessary approvals and tied up with post offices and banks for the same purpose.