New Government Schemes in Insurance and Pension Sector

The Government launched three new schemes in insurance and pension sector in 2015 with an objective to create a universal social security system for all Indians, especially the poor and underprivileged. These were the Pradhan Mantri Suraksha Bima Yojana (PMSBY), the Pradhan Mantri Jeevan Jyoti Bima Yojana (PMJJBY) and the Atal Pension Yojana (APY) and they were launched on a pan-India basis on 9 May 2015. The salient features of the three schemes are as follows:

Pradhan Mantri Suraksha Bima Yojana  (PMSBY)

  • The PMSBY offers a renewable one-year accidental-death-cum-disability cover to all subscribing bank account holders in the age group of 18 to 70 years for a premium of Rs. 12 per annum per subscriber. The risk coverage available will be Rs. two lakh for accidental death and permanent total disability and Rs. one lakh for permanent partial disability, for a one-year period stretching from 1 June to 31 May.
  • As on 1 January 2016, cumulative gross enrolment by banks under the PMSBY is over 9.28 crore. Over 2200 claims were registered under this scheme, out of which more than 1200 have been paid so far.

Pradhan Mantri Jeevan Jyoti Bima Yojana (PMJJBY)

  • The PMJJBY offers a renewable one-year term life cover of Rs. two lakh to all subscribing bank account holders in the age group of 18 to 50 years.
  • As on 1 January 2016, cumulative gross enrolment by banks under the PMJJBY is over 2.93 crore. Over 11,600 claims were registered under the PMJJBY, out of which more than 9300 have been settled.

Atal Pension Yojana (APY)

  • The APY provides a defined pension, depending on the contribution and its period.
  • The subscribers to the APY will receive a minimum pension of Rs. 1000, 2000, 3000, 4000 or 5000 per month, from the age of 60 years, depending on their contributions, which are themselves based on the age of joining the scheme.
  • The scheme is open to all bank account holders. The central government co-contributes 50 per-cent of the total contribution subject to a maximum of Rs. 1000 per annum, to each eligible subscriber’s account, for a period of five years, i.e. from FY 2015-16 to FY 2019-20, who joined the APY between 1 June 2015 and 31March 2016 and who is not a member of any statutory social security scheme and is not an income tax payer.
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