The Indian government has rolled out significant schemes tailored towards social security – the Pradhan Mantri Suraksha Bima Yojana (PMSBY), the Pradhan Mantri Jeevan Jyoti Bima Yojana (PMJJBY) and the Atal Pension Yojana (APY). Implemented for over eight years, these programs aim to offer a safety net for the population, primarily focusing on the financial security of the unorganised sector and old age protection. Let’s delve deeper into the composition of these programs.
Overview of Pradhan Mantri Suraksha Bima Yojana (PMSBY)
Launching as a one-year renewable accidental insurance plan, PMSBY seeks to provide coverage for death or disability due to accidents. The Public Sector General Insurance Companies (PSGICs) in collaboration with banks or post offices manage this scheme. Applicants aged 18-70 who have a savings bank or post office account can join in this program.
PMSBY offers an accidental death cum disability coverage of Rs. 2 lakhs (with Rs. 1 lakh offered in case of partial disability), costing a premium of Rs.20 per annum. To date, more than 34.18 crore citizens have enrolled, with Rs. 2,302.26 crore disbursed through 1,15,951 claims.
Exploring the Pradhan Mantri Jeevan Jyoti Bima Yojana (PMJJBY)
PMJJBY is a yearly renewable life insurance scheme that caters to death caused by any reason. It runs under the administration of LIC or any other life insurance company in partnership with banks or post offices. This scheme is open to individuals aged 18-50 years who have savings in either a bank or a post office.
PMJJBY beneficiaries enjoy a life insurance cover of Rs. 2 Lakhs for a premium of Rs. 436 per annum in case of death due to any reason. The scheme boasts an enrollment of over 16.19 crore members, with about Rs. 13,290.40 crore disbursed against 6,64,520 claims.
Unraveling the Atal Pension Yojana (APY)
APY emerged to establish a universal social security system for Indians, specifically targeting the underprivileged and workers from the unorganised sector. It offers financial security and coverage for future emergencies for this population sector. The Pension Fund Regulatory and Development Authority (PFRDA) administers this scheme via the National Pension System (NPS).
Any bank account holder aged between 18 and 40 can join the scheme with contributions varying based on the chosen pension amount. APY guarantees a minimum monthly pension of Rs. 1,000 to Rs. 5,000 at the age of 60 years. Subscribers can voluntarily exit from APY under certain conditions with a deduction of government co-contribution and return/interest thereon. As per recent statistics, over 5 crore people have subscribed to the APY.
The Significance of these Schemes
These social security schemes play vital roles in safeguarding citizens’ welfare. They provide low-cost life/accidental insurance cover and an opportunity for saving towards a regular pension upon retirement. The extensive reach and success of these schemes, as proven by the immense number of enrollees and beneficiaries, means that financial security now extends to the most remote parts of the Indian society.
Other Social Security Schemes Launched by the Government of India
The government has made other strides in enhancing social security, including launching schemes like the Pradhan Mantri Shram Yogi Maan-Dhan Yojana (PM-SYM), the National Pension Scheme for Traders and The Self-employed Persons (NPS), National Health Mission, Janani Suraksha Yojana, Pradhan Mantri Matru Vandana Yojana, Pradhan Mantri Vaya Vandana Yojana (PMVVY), National Social Assistance Programme (NSAP) scheme, and PM KISAN.
Prior Questions in UPSC Civil Services Examination
In the 2016 UPSC civil services examination, a question about the Atal Pension Yojana was posed, emphasizing its focus on the unorganized sector workers, the possibility of just one family member joining the scheme, and the guarantee of the same pension amount for the spouse after the participant’s death. The correct answer was that it is a minimum guaranteed pension scheme primarily targeted at unorganized sector workers, and the same amount of pension is guaranteed for the spouse for life after the subscriber’s death.
