The government of India has been focused on providing financial security and a social safety net for its citizens, particularly those coming from the unorganized sector. To this effect, several schemes have been launched over the years that aim to provide easy access to low-cost insurance services, secure savings options and benefits that cater to old age exigencies. Among these are the Pradhan Mantri Suraksha Bima Yojana (PMSBY), Pradhan Mantri Jeevan Jyoti Bima Yojana (PMJJBY), and Atal Pension Yojana (APY). These welfare schemes, now seven years into their execution, have done commendable work.
Pradhan Mantri Suraksha Bima Yojana (PMSBY)
This one-year accidental insurance program, renewable each succeeding year, offers coverage for death or disability resulting from an accident. It is open to individuals aged 18-70 years who possess a savings bank or post office account. The scheme offers up to Rs. 2 lakh cover for accidental death or full disability, and Rs. 1 lakh for partial disability. Till date, cumulative enrolments have exceeded 28.37 crores with Rs. 1930 crore paid towards 97,227 claims.
Pradhan Mantri Jeevan Jyoti Bima Yojana (PMJJBY)
The PMJJBY, akin to PMSBY, is also a renewable one-year term life insurance policy. It caters to individuals in the 18-50 years age bracket with a savings bank or post office account. Offering life cover of Rs. 2 lakh against a nominal premium of Rs. 330/- per annum, the scheme provides a safety net for beneficiaries in case of the policyholder’s death. As of present, over 12.76 crore people are enrolled under this scheme with Rs. 11,522 crores disbursed for 5,76,121 claims.
Atal Pension Yojana (APY)
The APY was introduced to establish a universal social security system across India, targeting the poor, underprivileged and workers from unorganized sectors. Administered by the Pension Fund Regulatory and Development Authority (PFRDA) through the National Pension System (NPS), this scheme is accessible to all bank account holders aged 18-40 years. Subscribers can look forward to receiving a guaranteed minimum monthly pension ranging from Rs. 1000 to Rs. 5000 at 60 years of age, contingent on their contributions. Contributions to the APY can be scheduled monthly, quarterly, or half-yearly, with the central government guaranteeing the minimum pension. Over 4 crore individuals have subscribed to this scheme to date.
Pension Fund Regulatory and Development Authority (PFRDA)
The PFRDA is a statutory authority, established by an enactment of Parliament, set up to regulate, promote and ensure orderly growth of the NPS. It operates under the Department of Financial Services under the Ministry of Finance.
The Significance of these Schemes
These three welfare schemes play critical roles in ensuring the financial stability of India’s citizens. They are instrumental in covering unforeseen risks/losses and providing monetary safeguards for the future. The PMJJBY and PMSBY make low-cost life/accidental insurance accessible to everyone, whereas the APY allows for present savings that secure a regular pension in old age. The vast number of enrolments and beneficiaries reiterate the success of these schemes. What was once accessible only to a select few is now within everyone’s reach.
