Cabinet clears three social security schemes

The Union Cabinet today gave approval to three mega social security initiatives -- one pension and two insurance schemes -- to be launched by Prime Minister Narendra Modi on May 9.
The schemes -- Pradhan Mantri Jeevan Jyoti Bima Yojana (PMJJBY) and Pradhan Mantri Suraksha Bima Yojana (PMSBY) and Atal Pension Yojana (APY)-- will be launched in Kolkata, the capital of West Bengal where assembly elections are due next year.
"Cabinet approves operationalisation of APY, PMJJBY & PMSBY in all states and UTs," said a tweet by the PIB.
An official release said the decision on APY will benefit 2 crore subscribers in the first year, and that on PMSBY and PMJJBY will provide affordable personal accident and life cover to a vast population.

The initiatives are aimed at providing affordable universal access to essential social security protection in a convenient manner linked to auto-debit facility from bank accounts.
The schemes are expected to address the issue of very low coverage of life or accident insurance and old age income in the country, a Finance Ministry statement had said.

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 firms willing to offer the product on similar terms on the choice of the bank concerned.

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.