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Here are path breaking insurance initiatives for common man

Modi government has unveiled life and accident insurance schemes that offer cost effective coverage to masses.

June 12, 2015 / 01:16 PM IST

Naval Goel

It has been one year since the new government came into place, in May 2014. There on, Prime Minister Narendra Modi has introduced several path-breaking social schemes for common man. In the past one year, schemes like Pradhan Mantri Jan Dhan Yojana have brought in the change which was unprecedented in the history of India’s 65 years of independence.

Prime minister’s vision for financial inclusion and social security for common man does not end on one scheme. Recently, the government launched a slew of mass social security and insurance schemes. All Indian citizens are eligible to avail of insurance irrespective of their social and financial profile.

Here is a snapshot of those schemes:

Pradhan Mantri Surakhsa Bima Yojana (PMSBY): Under this scheme, a policy holder will be eligible to get a cover of Rs 2 lakh towards accidental death or permanent disability. Now you would wonder, how to get this cover? How much is the premium amount and to whom should it be paid?


It is extremely easy. You just need to have a bank account. You can simply approach your bank to avail the policy. The bank will deduct the premium amount of Rs 12. Most banks are already sending SMSs to their account holders about it.

In this case, you do not even need to approach the bank. Just send the SMS to the bank as per the instructions given in the bank’s SMS and you will get the confirmation, instantly. It is just a matter of few minutes.

Is there any age limit? Yes, all Indians in the age between 18 and 70 years can get coverage under the scheme.

The scheme will be administered by public sector general insurance scheme or any private sector general insurance scheme empanelled by the government and the bank. Most banks already have a tie-up with general insurance schemes.

Pradhan Mantri Jivan Jyoti Bima Yojana (PMJJBY): This scheme offers life insurance coverage of Rs 2 lakh. The modus operandi is the same as the PMSBY. You need to have a savings account with a bank. Are you wondering why all these insurance schemes are linked to bank accounts? It is an amazing way of ensuring financial inclusion and taking the banking facilities to each and every family in the country.

If all the people in the country get bank account, it will inculcate habit of savings and in the long run, it always helps to have savings in hand.

This scheme provides a life insurance cover of Rs 2 lakh. The premium amount is a bit higher at Rs 330 per annum. Any Indian citizen in the age bracket of 18-50 years can avail of the coverage under this public life insurance scheme.

Life Insurance Corporation (LIC) is the lead insurance company providing coverage under this scheme. However, there are several other private sector insurance companies which are empanelled to provide the services.

Atal Pension Yojana (APY): It is a path-breaking social security scheme for people who have not been covered under any social security scheme. People working for the Central and State governments are eligible for pension schemes. Similarly, those working in the private sector are also able to save for retirement through provident schemes. But there are millions of people who work in the unorganised sector and for them; there is no pension scheme in place. They run a very high risk of financial insecurity, since most of them are also not aware of savings instruments and investment routes.

For them, Atal Pension Yojana will be a radical way of ensuring financial security in the old age. The best part is that the Central government will also contribute the same amount deposited by the plan holder. For instance, if a plan holder contributes Rs 500 towards this scheme, the government will also deposit the same amount. Though there is an upper limit of Rs 1,000 contribution from the end of the government.

Anyone in the age bracket of 18-40 years can avail this scheme. After reaching the age of 60 years, the plan holder will be able to get a pension of Rs 1,000-5,000 per month.

More than 100 million people have already enrolled for the above schemes in a span of a few days of launch. In the coming times, these schemes are expected to cover most people in the country and begin a new era of financial inclusion and social security in India.

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