Important Social Security Schemes in India (Part III)
Let us discuss some of the important schemes that are aimed to help unorganised sector workers and to ensure financial security so that they can live with dignity.
1. PM Suraksha Bima Yojana (PMBY)
The PMBY is an accidental insurance scheme that provides accidental death and disability coverage for one year, with an annual renewal.
Who is eligible to avail the benefit?
- Any person having a bank account and Aadhaar number linked to the bank account can give a simple form to the bank every year before the 1st of June to join the Scheme.
- Name of nominee to be given in the form.
- Available to people in the age group 18 to 70 years with a bank account.
Premium: Rs.12 per annum.
Payment Mode: The premium will be directly auto-debited by the bank from the subscribers account on or before 1 st June of each annual coverage period under the Scheme.
- Death - Rs 2 Lakh
- Total and irrecoverable loss of both eyes or loss of use of both hands or feet or loss of sight of one eye and loss of use of hand or foot - Rs 2 Lakh
- Total and irrecoverable loss of sight of one eye or loss of use of one hand or foot – Rs.1 Lakh.
Terms of Risk Coverage: A person has to opt for the Scheme every year. S/He can also prefer to give a long-term option of continuing in which case his/her account will be auto-debited every year by the bank.
The Scheme will be offered by all Public Sector General Insurance Companies and all other insurers who are willing to join the Scheme and tie-up with banks for this purpose.
- Various Ministries can co-contribute premium for various categories of their beneficiaries from their budget, or Public Welfare Fund created in this budget from unclaimed money.
- This will be decided separately during the year.
- The Government will bear common Publicity Expenditure.
2. The Pradhan Mantri Jeevan Jyoti Bima Yojana (PMJJBY)
It is aimed to provide life insurance cover.
Who is eligible to avail the benefit?
- Available to people in the age group of 18 to 50 and having a bank account. People who join the scheme before completing 50 years can, however, continue to have the risk of life cover up to the age of 55 years subject to payment of premium.
Objective: Welfare of the people
- To secure financial future
- Increase the penetration of life insurance
- Increase awareness
Premium: Rs.330 per annum. It will be auto-debited in one instalment.
Payment Mode: The payment of premium will be directly auto-debited by the bank from the subscriber's account.
Risk Coverage: Rs.2 Lakh in case of death for any reason.
Terms of Risk Coverage: A person has to opt for the scheme every year. He can also prefer to give a long-term option of continuing, in which case his account will be auto-debited every year by the bank.
The scheme will be offered by Life Insurance Corporation and all other life insurers who are willing to join the scheme and tie-up with banks for this purpose.
- Various other Ministries can co-contribute premium for various categories of their beneficiaries out of their budget or out of Public Welfare Fund created in this budget out of unclaimed money. This will be decided separately during the year.
- Common Publicity Expenditure will be borne by the Government.
Note: Anyone who has enrolled for both the schemes PMSBY and PMJJY, in case of accidental death the family or the nominee will get Rs. 4 lakh.
- Atal Pension Yojana (APY)
The scheme aims to help unorganised sector workers save money for their old age while they are working and guarantees return post-retirement.
Who can avail the benefits?
Anyone is in the age group of 18-40 yrs and has a bank account can avail the benefits. Aadhar possession is mandatory.
- Fixed pension for the subscribers ranging between Rs.1000 to Rs. 5000, if s/he joins and contributes between the age of 18 years and 40 years.
- The contribution levels would vary and would be low if the subscriber joins early and increase if s/he joins late.
- The same pension is payable to Spouse after the death of Subscriber.
- Return of indicative pension wealth to nominees after the death of a spouse.
- Contributions to the Atal Pension Yojana (APY) is eligible for tax benefits similar to the National Pension System (NPS).
- The tax benefits include the additional deduction of Rs 50,000 under section 80CCD(1).
- PM Mudra Yojana
With an objective to promote entrepreneurship among the new generation aspiring youth, it is ensured that more focus is given to Shishu Category Units and then Kishore and Tarun categories.
MUDRA will act as an agency and identify such institutions that provide loans. The loans are provided in three different modes:
- Shishu: covering loans upto 50,000/-
- Kishor: covering loans above 50,000/- and upto 5 lakh
- Tarun: covering loans above 5 lakh and upto 10 lakh
MUDRA Card will be allotted for any emergency. MUDRA Card is a debit card issued against the MUDRA loan account, for working capital portion of the loan.
Check other links also: