Modi launches new insurance schemes for social security

Published on May 10, 2015 00:21:52 AM
Business
Prime Minister Narendra Modi has launched three social security schemes Pradhan Mantri Suraksha Bima Yojana, Pradhan Mantri Jivan Jyoti Bima Yojana and Atal Pension Yojana on Saturday in Kolkata, aimed to achieve economic empowerment of the poor, also attended by West Bengal Chief Minister Mamata Banerjee.
These three schemes being implemented in 115 locations, would ensure social security at a very nominal cost to the millions of countrymen.

Public sector general insurance companies, banks to play key role

Pradhan Mantri Suraksha Bima Yojana and PM Jivan Jyoti Bima Yojana would provide insurance to individuals in any unfortunate event causing death or disability. The Atal Pension Yojana would address the problem of income security during old age. There are millions of senior citizens who do not have any secure source of income during the ripe years of their life. These schemes will also address issues like very low coverage of life or accident insurance as well as old age income security products in this vast country.

Modi explained, Pradhan Mantri Suraksha Bima Yojana will provide insurance coverage of `2 lakhs for individuals on payment of just `12 per annum. This scheme can benefit all the savings bank account holders in the age group of 18-70 years. Public sector general insurance companies or other general insurance companies which are willing to offer insurance coverage to individuals on similar terms would offer and administer this scheme. The scheme is delivered through banks including regional rural banks as well as cooperative banks.

Pradhan Mantri Jivan Jyothi Bima Yojana is another scheme which offers Life Insurance coverage of `2 lakhs for any savings bank holders in the age group of 18-50 years on payment of just `330 per year. This scheme is offered through LIC of India or other Life Insurance companies that are willing to offer life insurance on similar terms, Modi said. Atal Pension Yojana focuses on the unorganised sector where nearly 400 million employees representing more than 80 per cent of all employees are engaged. Atal Pension Yojana would provide a fixed minimum pension `1,000 to `5,000 per month starting from the age of 60.

The amount of pension will depend on the monthly contribution by the employee and the age at which the employee subscribes the insurance. In any case the individual will have to subscribe under Atal Pension Yojana for a minimum of 20 years. The most significant part of this yojana is co-contribution by government of `1,000 per annum or 50 per cent of the total contribution whichever is lower, for the first five years if one joins the scheme before December 31, 2015.