Monday, May 11, 2015

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. 

Nature of Insurance
Eligible Age Group
Risk coverage amount
Pradhan Mantri Jeevan Jyoti Bima Yojana (PMJJBY)

Life Insurance

18-50 yr
Rs. 330/- per year
Death for any reason - Rs. 2 lakh

One year insurance cover,

Renewable from year to year
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

Atal Pension Yojna

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

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:
Pradhan Mantri Suraksha Bima Yojana (PMSBY)
Pradhan Mantri Jeevan Jyoti Bima Yojana (PMJJBY)
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
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
Death Benefit (Natural Death)
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
Disability of one eye or one limb
Rs 1 lakh
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

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