Eight Years of Jan Suraksha Schemes | 11 May 2023

Why in News?

Recently, the three social security (Jan Suraksha) schemes – Pradhan Mantri Suraksha Bima Yojana (PMSBY), Pradhan Mantri Jeevan Jyoti Bima Yojana (PMJJBY) and Atal Pension Yojana (APY) – completed 8 years of providing social security net.

• PMJJBY and PMSBY were launched to ensure that the people from the unorganised section of the country are financially secure while APY was introduced to cover the exigencies in old age.

What is Pradhan Mantri Suraksha Bima Yojana (PMSBY)?

• About:
  • It is a one-year accidental insurance scheme renewable from year to year offering coverage for death or disability due to accident.
• Administered By:
  • It is administered by Public Sector General Insurance Companies (PSGICs) or any other general insurance company in partnership with banks / Post offices.
• Eligibility:
  • Individuals in the age group of 18-70 years having a savings bank or a post office account are entitled to enroll.
• Benefits:
  • Accidental death cum disability cover of Rs. 2 lakhs (Rs. 1 lakh in case of partial disability) for death or disability due to an accident against a premium of Rs.20/- per annum.
• Achievements:
  • As of April 2023, the cumulative enrolments under the scheme have been more than 34.18 crore and an amount of Rs. 2,302.26 crore has been paid for 1,15,951 claims.

What is Pradhan Mantri Jeevan Jyoti Bima Yojana (PMJJBY)?

• About:
  • It is a one-year life insurance scheme renewable from year to year offering coverage for death due to any reason.
• Administered By:
  • It is administered by LIC or any other life insurance company in partnership with banks / Post office.
• Eligibility:
  • Individuals in the age group of 18-50 years having a savings bank or a post office account are entitled to enroll under the scheme.
• Benefits:
  • Life cover of Rs. 2 Lakhs in case of death due to any reason against a premium of Rs. 436/- per annum.
• Achievements:
  • As of April 2023, the cumulative enrolments under the scheme have been more than 16.19 crore and an amount of Rs. 13,290.40 crore has been paid for 6,64,520 claims.

What is Atal Pension Yojana (APY)?

• About:
  • It was launched to create a universal social security system for all Indians, especially the poor, the under-privileged and the workers in the unorganised sector.
  • It is an initiative of the Government to provide financial security and cover future exigencies for the people in the unorganized sector.
• Administered By:
  • Pension Fund Regulatory and Development Authority (PFRDA) through the National Pension System (NPS).
• Eligibility:
  • All bank account holders in the age group of 18 to 40 years (the contributions differ, based on the pension amount chosen).
• Benefits:
  • Subscribers would receive the guaranteed minimum monthly pension of Rs. 1000 or Rs. 2000 or Rs. 3000 or Rs. 4000 or Rs. 5000 at the age of 60 years, based on the contributions made by them after joining the scheme.
• Payment Frequency:
  • Subscribers can make contributions to APY on a monthly/ quarterly / half-yearly basis.
• Withdrawal from the Scheme:
  • Subscribers can voluntarily exit from APY subject to certain conditions, on deduction of Government co-contribution and return/interest thereon.
• Achievements:
  • As of April 2023, more than 5 crore individuals have subscribed to APY.

What are the Significances of these Schemes?

• These three social security schemes are dedicated to the welfare of the citizens, recognising the need for securing human life from unforeseen risks/losses and financial uncertainties.
• The PMJJBY and PMSBY provide access to low-cost life/accidental insurance cover to the people, the APY provides an opportunity for saving in the present for getting a regular pension in old age.
• The number of people who have enrolled and benefitted from these schemes over the last seven years is a testimony to their success.
• These low-cost insurance schemes and the guaranteed pension scheme are ensuring that financial security, which was available to a select few earlier, is now reaching the last person of the society.

Source: PIB