Syllabus:
GS2: Government Policies and Interventions for Development in various sectors and Issues arising out of their Design and Implementation.
Context:
Recently, the Pradhan Mantri Jeevan Jyoti Bima Yojana (PMJJBY), Pradhan Mantri Suraksha Bima Yojana (PMSBY), and Atal Pension Yojana (APY) schemes have completed 10 years of providing social security cover.
More on the News
- The three Jan Suraksha Schemes were launched by the Prime Minister on 9th May 2015.
- All three schemes were envisioned to extend affordable financial protection to all, particularly the underserved and vulnerable sections of society.
- These flagship schemes aim to broaden the insurance and pension landscape by shielding citizens against life’s uncertainties and fostering long-term financial resilience.
About the Pradhan Mantri Jeevan Jyoti Bima Yojana (PMJJBY):
- PMJJBY is designed to provide Life Insurance cover for death due to any reason at a premium of less than Rs. 2/- per day.
Features:
- It is a one-year renewable insurance scheme offered through LIC or other approved life insurers in partnership with banks or post offices.
- Participating banks/post offices can tie up with any eligible insurer to implement the scheme.
Eligibility Conditions:
- All bank/post office account holders aged 18 to 50 who consent to auto-debit can enroll in the scheme.
- Individuals with multiple accounts can join through only one account.
About the Pradhan Mantri Suraksha Bima Yojana (PMSBY):
- PMSBY is structured to provide accidental death and disability cover for death or disability on account of an accident, up to Rs 2 Lakhs to persons aged between 18-70 years, at a minimal premium of less than Rs. 2/- per month.
Features:
- It is a one-year renewable insurance scheme offered through PSGICs or other approved insurers in tie-up with banks/post offices, which are free to partner with any eligible insurer.
Eligibility Conditions:
- All bank/post office account holders aged 18 to 70 who consent to auto-debit can enroll in the scheme.
- Individuals can join through only one account, even if they hold multiple accounts.
About the Atal Pension Yojana (APY)
- APY aims to provide social security for all Indians, especially the poor and unorganized sector workers.
- It is administered by the Pension Fund Regulatory and Development Authority (PFRDA) under the National Pension System framework.
Eligibility:
- APY is open to all bank account holders in the age group of 18 to 40 years who are not income tax payers and the contributions differ, based on pension amount chosen.
Benefits:
- Subscribers minimum monthly pension of ₹1,000 to ₹5,000 after age 60, depending on their contributions.
- Pension is based on the subscriber’s contributions over time.
- After the subscriber’s death, the pension is continued to the spouse.
- After both subscriber and spouse pass away, the accumulated pension corpus is returned to the nominee.
- In Case of Premature Death: If the subscriber dies before turning 60, the spouse can continue contributions until the original vesting age of 60 is reached.
UPSC Mains
Practise Question: Social Security Schemes like the Pradhan Mantri Suraksha Bima Yojana (PMSBY) play a crucial role in enhancing financial inclusion and resilience among vulnerable sections. Discuss the significance of PMSBY and elaborate on its key features and performance.