Translating the Budget promises into action, Prime Minister Narendra Modi will launch the NDA Government’s three flagship schemes on social security in Kolkata on May 9. These are two insurance schemes — Pradhan Mantri Suraksha Bima Yojana (PMSBY) and Pradhan Mantri Jeevan Jyoti Bima Yojana (PMJJBY) — and a pension cover to senior citizens. These schemes were announced in the Budget by Finance Minister Arun Jaitley on February 28.
The two insurance schemes aim to provide a cover of Rs 2 lakh at a premium of just Re 1 per month, in case of death by any cause or disability due to an accident, while Atal Pension Yojana (APY) will address old-age income security needs. These schemes are aimed at providing affordable universal access to essential social security protection in a convenient manner linked to auto-debit facility from the bank account of a subscriber, said a Finance Ministry statement.
PMSBY will offer a renewable one-year accidental death-cum-disability cover of Rs 2 lakh (Rs 1 lakh for partial permanent disability) to all savings bank account holders in the age group of 18 to 70 years for a premium of Rs. 12 per annum per subscriber. The scheme would be administered through Public Sector General Insurance Companies (PSGICs) or other General Insurance companies.
PMJJBY, on the other hand, will offer a renewable one year life cover of Rs 2 lakh to all savings bank account holders in the age group of 18 to 50 years, covering death due to any reason, for a premium of Rs.330 per annum per subscriber. This scheme would be administered through life Insurance Corporation or other life insurance companies.
With focus on the unorganised sector APY aims to provide subscribers a fixed minimum pension of Rs 1000, Rs 2000, Rs 3000, Rs 4000 or Rs 5000 per month starting at the age of 60 years, depending on the contribution option exercised on entering at an age between 18 and 40 years. Thus, the period of contribution by any subscriber under APY would be 20 years or more.
The fixed minimum pension would be guaranteed by the Government. While the scheme is open to back account bank account holders in the prescribed age group, the Central Government would also co-contribute 50% of the total contribution or Rs. 1000 per annum, whichever is lower, for a period of 5 years for those joining the scheme before 31st December, 2015 and are not members of any statutory social security scheme and are not income tax payers.