Ambitious Social Security Schemes of Govt of India

Govt of India to launch much awaited and ambitious Social Sector Schemes in Insurance & Pension on 1 June, 2015. 

This will be the highest ever Social Security measure by Govt. at affordable costs to the last men & women of the country. It may prove to be a breaking point for the incumbent government which is facing flak, particularly of the rural & farming community in view of the farmers' suicides and ongoing farm crises. 

Besides, this would be also a real bold step towards Financial Inclusion for the last mile coverage. 

S. No.	Scheme	Nature of Insurance	Reasons	Eligible Age Group	Premium	Risk coverage amount	Remarks
1.	Pradhan Mantri Jeevan Jyoti Bima Yojana (PMJJBY)	Life Insurance	Death	18-50 yr	Rs. 330/- per year	Death for any reason - Rs. 2 lakh	One year insurance cover, Renewable from year to year
2.	Pradhan Mantri Suraksha Bima Yojana (PMSBY)	Accidental  Insurance	Death or Disability	18-70 yr	Rs. 12/- per year	Accidental death and full disability – Rs 2 Lakh and Partial disability – Rs 1 Lakh
3.	Atal Pension Yojna  (APY)	Pension	Working in Unorganised sector & attaining the age of 60 yrs	18-40 yr joining & contribute till 60 yrs. under 40 yr,  receive the fixed monthly pension –  Rs. 1000 At the age of 60 yr- Rs 5000	Rs. 1000- Rs. 5000	Pension depending on the contributions	Open to all bank account holders who are not members of any statutory social security scheme.

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 1st of June in order to join the scheme. 

Name of nominee to be given in the form.

The payment of premium will be directly auto-debited by the bank from the subscribers account.

The premium paid will be tax-free under section 80C and also the proceeds amount will get tax-exemption u/s 10(10D).But if the proceeds from insurance policy exceed Rs.1 lakh , TDS at the rate of 2% from the total proceeds if no Form 15G or Form 15H is submitted to the insurer.

 Comparison between PMJJBY vs PMSBY:

Features	Pradhan Mantri Suraksha Bima Yojana (PMSBY)	Pradhan Mantri Jeevan Jyoti Bima Yojana (PMJJBY)
Eligibility	18-70 years	18-50 years
Number of Policy	One Policy Per Person	One Policy Per Person
When to Join the Scheme?	Any time	Any time
Sum Assured (Fixed)	Rs 2 lakhs	Rs 2 lakhs
Premium	Rs 12 per annum	Rs. 330 per annum
Cover stops at age	At the age of 70 years	At the age of 55 years
Maturity Benefit	Nil	Nil
Death Benefit (Natural Death)	Nil	Rs 2 lakhs
Death Benefit (Accidental Death)	Rs 2 lakhs	Rs 2 lakhs
Disability of both eyes, both hands, both legs or one eye and one limb	Rs 2 lakhs	Nil
Disability of one eye or one limb	Rs 1 lakh	Nil
Maximum Insurance cover	Rs 2 lakhs	Rs.2 lakhs
Risk Period	1st June to 31st May every year.	1st June to 31st May every year.
Mode of Payment	Auto debit from bank account	Auto debit from bank account