Social Security and Government Insurance Schemes in India

Overview

Social security in India includes government-backed insurance, pension and welfare schemes that cushion citizens against illness, disability, death and old age. These schemes are designed for workers in the organised and unorganised sectors, farmers, traders and vulnerable households through subsidised contributions, auto-debit mechanisms and government matching support.

For Prelims, the key is to remember the scheme name, target group, age limit, benefit amount and the implementing institution. Many of these schemes are linked to bank or post office accounts and use digital platforms for enrolment and claims.

Life and Accident Insurance Schemes

Pradhan Mantri Jeevan Jyoti Bima Yojana (PMJJBY) is a one-year life insurance cover renewable every year. It provides protection against death due to any reason and is offered by the Life Insurance Corporation of India and other willing life insurers.

• Eligibility: Age group of 18 to 50 years with a bank or post office account.
• Coverage: Rs. 2 lakh.
• Premium: Rs. 436 per annum, auto-debited from the subscriber’s bank account.
• Nature: Life insurance cover for death due to any cause.

Pradhan Mantri Suraksha Bima Yojana (PMSBY) covers accidental death and disability. It is implemented by Public Sector General Insurance Companies and other general insurers.

• Eligibility: Age group of 18 to 70 years with a bank account.
• Coverage: Rs. 2 lakh for accidental death and full disability; Rs. 1 lakh for partial disability.
• Premium: Rs. 20 per annum, deducted through auto-debit.
• Nature: Accident insurance focused on death and disability.

Health Insurance Initiatives

Ayushman Bharat Pradhan Mantri Jan Arogya Yojana (PM-JAY), launched in 2018, is the world’s largest government-funded health insurance scheme. It provides cashless and paperless treatment at empanelled hospitals.

• Coverage: Up to Rs. 5 lakh per family per year.
• Use: Secondary and tertiary care hospitalization.
• Target group: Over 10 crore poor and vulnerable families, or about 50 crore beneficiaries.
• Mode: Cashless and paperless access to empanelled hospitals.

Employees’ State Insurance Scheme (ESIS) was established under the ESI Act, 1948. It provides health and social security coverage to industrial workers.

• Benefits: Medical care, maternity benefits, and cash compensation during sickness or employment injury.
• Coverage: Linked to workers in the industrial sector.

Central Government Health Scheme (CGHS) provides comprehensive healthcare facilities to central government employees, pensioners and their dependents.

• Services: Outpatient care, in-patient hospitalization, medicines and diagnostic costs.
• Beneficiaries: Central government employees, pensioners and dependents.

Pension and Retirement Security

Atal Pension Yojana (APY), launched in 2015, is open to savings bank or post office account holders. The government guarantees a minimum pension based on contribution.

• Entry age: 18 to 40 years.
• Pension: Guaranteed monthly pension of Rs. 1,000 to Rs. 5,000 after age 60.
• Nature: Pension amount depends on the contribution made by the subscriber.

Pradhan Mantri Shram Yogi Maan-Dhan Yojana (PM-SYM) is a voluntary and contributory pension scheme for unorganized sector workers.

• Eligibility: Monthly income below Rs. 15,000 and age between 18 and 40 years.
• Ineligible groups: Members of EPFO, ESIC or NPS.
• Pension: Assured monthly pension of Rs. 3,000 after age 60.
• Contribution: Beneficiary pays 50% of the monthly contribution; the Central Government pays the matching share.

Pradhan Mantri Kisan Maan-Dhan Yojana (PM-KMY) is a voluntary and contributory pension scheme for small and marginal farmers.

• Eligibility: Age 18 to 40 years and cultivable land up to 2 hectares.
• Pension: Assured Rs. 3,000 per month after age 60.
• Contribution: Matching contribution by the Government of India.

Social Assistance and Sector-Specific Schemes

National Social Assistance Programme (NSAP) provides financial support to persons with little or no regular means of subsistence.

• Central contribution: Rs. 300 to Rs. 500 across different age groups.
• Total monthly pension: Rs. 1,000 to Rs. 3,000 depending on the state’s contribution.

Pradhan Mantri Laghu Vyapari Maan-Dhan Yojana is a pension scheme for small traders and shopkeepers.

• Benefit: Rs. 3,000 monthly pension after age 60.
• Target group: Small traders and shopkeepers.

Implementation and Digital Platforms

• JanSuraksha portal: National digital repository for end-to-end enrolment and claims for PMJJBY and PMSBY.
• Aadhaar: Primary KYC document for bank accounts linked to JanSuraksha auto-debit facilities.
• e-Shram portal: Centralised database maintained by the Ministry of Labour and Employment for registering unorganised workers.
• Integration: e-Shram helps connect workers with schemes such as PM-SYM.
• PM-SYM death benefit: In case of a beneficiary’s death, the surviving spouse receives 50% of the monthly pension.

Key Prelims Takeaways

• PMJJBY: Life insurance cover for death due to any reason; age 18 to 50 years; premium Rs. 436; cover Rs. 2 lakh.
• PMSBY: Accidental death and disability cover; age 18 to 70 years; premium Rs. 20; cover Rs. 2 lakh for death/full disability.
• PM-JAY: Rs. 5 lakh per family per year; launched in 2018; cashless and paperless treatment.
• ESIS: Established under the ESI Act, 1948; benefits include medical care, maternity and sickness compensation.
• CGHS: For central government employees, pensioners and dependents.
• APY: Open to savings bank or post office account holders; entry age 18 to 40 years; pension from Rs. 1,000 to Rs. 5,000.
• PM-SYM and PM-KMY: Both are voluntary contributory pensions with Rs. 3,000 monthly pension after age 60.