The schemes to be launched by Narendra Modi, are aimed at providing affordable universal access to essential social security protection in a convenient manner linked the bank account of a subscriber.
On the lines of Jan Dhan mega rollout, Prime Minister Narendra Modi will launch on May 9 social security insurance and pension schemes in Kolkata, while other ministers will unveil them in different cities.
“There would be simultaneous functions across various states with participations from chief ministers and cabinet ministers. It would be like Jan Dhan scheme launch so that we have maximum awareness in minimum time,” Department of Financial Services Secretary Hasmukh Adhia told PTI.
“The enrolment for insurance and pension schemes would begin after Prime Minister launches them. However, the insurance cover would be enforced from June 1,” he said.
As it will be linked to bank accounts, the premium would get auto debited, Adhia said.
These schemes, to be launched by Modi, are aimed at providing affordable universal access to essential social security protection in a convenient manner linked to auto- debit facility from the bank account of a subscriber, as per a Finance Ministry statement.
These schemes were announced in the Budget by Finance Minister Arun Jaitley on February 28.
The two insurance schemes — Pradhan Mantri Suraksha Bima Yojana (PMSBY) and Pradhan Mantri Jeevan Jyoti Bima Yojana (PMJJBY) — will provide insurance cover in case of death as well as death/disability due to an accident. The pension scheme, Atal Pension Yojana (APY), will address old age income security needs.
PMSBY will offer a renewable one year accidental death-cum -disability cover of Rs 2 lakh for partial/permanent disability to all savings bank account holders in the age group of 18-70 years for a premium of Rs 12 per annum per subscriber.
The scheme would be administered through Public Sector General Insurance Companies or other General Insurance companies willing to offer the product on similar terms on the choice of the bank concerned, it added.
PMJJBY on the other hand will offer a renewable one year life cover of Rs 2 lakh to all savings bank account holders in the age group of 18-50 years, covering death due to any reason, for a premium of Rs 330 per annum per subscriber.
The scheme would be offered or administered through LIC or other Life Insurance companies willing to offer the product on similar terms on the choice of the bank concerned.
The pension scheme will focus on the unorganised sector and provide subscribers a fixed minimum pension of Rs 1,000, 2,000, 3,000, 4,000 or Rs 5,000 per month starting at the age of 60 years, depending on the contribution option exercised on entering at an age between 18 and 40 years.
The period of contribution by any subscriber under APY would be 20 years or more.
The fixed minimum pension would be guaranteed by the government.