The recent demise of an Agniveer, a soldier serving under India’s Armed Forces, at the Siachen glacier has called attention to the government’s provision of pensions and compensation to the families of these personnel. This incident took place in the wake of the implementation of the Agnipath scheme in 2022, which sought to recruit soldiers (termed Agniveers) across the Army, Navy, and Airforce.
Understanding the Compensation for Agniveers
After the unfortunate demise of an Agniveer while on duty, several forms of compensation are provided to their family. The Agniveer’s family is entitled to a variety of benefits, including a non-contributory insurance sum of Rs 48 lakh and Rs 44 lakh as compensation. In addition, they receive 30% of the Seva Nidhi contributed by the deceased soldier, matched equally by the government.
Added to this is the interest accrued on these amounts. Furthermore, the Armed Forces Battle Casualty Fund contributes Rs 8 lakh, and the pay for the remaining tenure from the date of death, amounting to over Rs 13 lakh, is also offered to the bereaved family. The Army Wives Welfare Association steps in to provide immediate financial assistance, offering Rs 30,000 to the next of kin.
An Introduction to the Agnipath Scheme
The Agnipath Scheme was designed with the aim of allowing patriotic and motivated youth to serve in the Armed Forces for a period of four years. As per the new scheme, around 45,000 to 50,000 soldiers will be recruited annually. Most, however, will leave the service in just four years.
This scheme specifically targets personnel below officer ranks, i.e., those who do not join the forces as commissioned officers. These commissioned officers hold an exclusive rank in the Indian armed forces, holding a commission under the president’s sovereign power and are officially tasked with protecting the country. The age criterion for the scheme sets an eligibility bar between 17.5 years and 21 years.
The Motive and Benefits of the Agnipath Scheme
This undertaking primarily aims to open up the Armed Forces to patriotic and motivated youth, providing them with a chance to serve their nation. It is also expected to bring down the average age profile of the Indian Armed Forces by about 4 to 5 years.
Once their service tenure concludes, the Agniveers receive a one-time ‘Seva Nidhi’ package amounting to Rs 11.71 lakhs, which includes their accrued interest thereon. This is coupled with a Rs 48 lakh life insurance cover for the four years. In case of death, this payout will exceed Rs 1 crore, including pay for any unserved tenure.
Addressing the Concerns Around the Agnipath Scheme
Despite its intentions, the Agnipath scheme has raised concerns. After serving their contract, these recruits often find it difficult to secure another job to support themselves and their families, as they do not receive any pension benefits. Furthermore, the forces lose experienced soldiers once their contract ends, and the technical training provided may remain unutilized.
A Way Forward
To address these issues, the Government should consider relaxing mandatory licensing regulations for Agniveers. This would potentially attract more of them to invest in starting up a business unit, proving beneficial for both them and the economy. Offering attractive interest rates on deposits for Agniveers could stimulate savings while benefiting banks. Relaxations in admission criteria for higher education for Agniveers may also prove to be a significant attraction, as highly qualified and disciplined Agniveers would have the capacity to seize these opportunities.