To ensure that the people from the unorganised section of the country are financially secure, the Government launched two insurance schemes –PMJJBY and PMSBY; and introduced APY to cover the exigencies in old age.
These schemes were launched by the Prime Minister in May 2015 from Kolkata, West Bengal.
What is Pradhan Mantri Suraksha Bima Yojana (PMSBY)?
Scheme: It is a one-year accidental insurance scheme renewable from year to year offering coverage for death or disability due to accident.
Eligibility: Individuals in the age group of 18-70 years having a savings bank or a post office account are entitled to enroll under the scheme.
Benefits: Accidental death cum disability cover of Rs.2 lakh (Rs.1 lakh in case of partial disability) for death or disability due to an accident.
Achievements: As of today, the cumulative enrolments under the scheme have been more than 28.37 crore and an amount of Rs. 1,930 crore has been paid for 97,227 claims.
What is Pradhan Mantri Jeevan Jyoti Bima Yojana (PMJJBY)?
About: It is a one-year life insurance scheme renewable from year to year offering coverage for death due to any reason.
Eligibility: Individuals in the age group of 18-50 years having a savings bank or a post office account are entitled to enroll under the scheme.
Benefits: Life cover of Rs. 2 Lakh in case of death due to any reason against a premium of Rs. 330/- per annum.
Achievements: As of today, the cumulative enrolments under the scheme have been more than 12.76 crore and an amount of Rs. 11,522 crores have been paid for 5,76,121 claims.
What is Atal Pension Yojana (APY)?
Background: The Atal Pension Yojana (APY) was launched to create a universal social security system for all Indians, especially the poor, the under-privileged and the workers in the unorganised sector.
It is an initiative of the Government to provide financial security and cover future exigencies for the people in the unorganized sector.
Eligibility: This scheme is open to all bank account holders in the age group of 18 to 40 years and the contributions differ, based on the pension amount chosen.
Benefits: Subscribers would receive the guaranteed minimum monthly pension of Rs. 1000 or Rs. 2000 or Rs. 3000 or Rs. 4000 or Rs. 5000 at the age of 60 years, based on the contributions made by the subscriber after joining the scheme.
Contribution by Central Government: The minimum pension would be guaranteed by the Government, i.e., if the accumulated corpus based on contributions earns a lower than estimated return on investment and is inadequate to provide the minimum guaranteed pension, the Central Government would fund such inadequacy.
Alternatively, if the returns on investment are higher, the subscribers would get enhanced pensionary benefits.
Payment frequency: Subscribers can make contributions to APY on a monthly/ quarterly / half-yearly basis.
Achievements: As of today, more than 4 crore individuals have subscribed to the scheme.
Pension Fund Regulatory and Development Authority (PFRDA)
It is the Statutory Authority established by an enactment of the Parliament, to regulate, promote and ensure orderly growth of the National Pension System (NPS).
It works under the Department of Financial Services under the Ministry of Finance.
What are the Significances of these Schemes?
These three social security schemes are dedicated to the welfare of the citizens, recognising the need for securing human life from unforeseen risks/losses and financial uncertainties.
The PMJJBY and PMSBY provide access to low-cost life/accidental insurance cover to the people, the APY provides an opportunity for saving in the present for getting a regular pension in old age.
The number of people who have enrolled and benefitted from these schemes over the last seven years is a testimony to their success.
These low-cost insurance schemes and the guaranteed pension scheme are ensuring that financial security, which was available to a select few earlier, is now reaching the last person of the society.
UPSC Civil Services Examination, Previous Years Questions (PYQs)
Q.Regarding ‘Atal Pension Yojana’, which of the following statements is/are correct? (2016)
It is a minimum guaranteed pension scheme mainly targeted at unorganized sector workers.
Only one member of a family can join the scheme.
Same amount of pension is guaranteed for the spouse for life after subscriber’s death.
Select the correct answer using the code given below: