Modi launches 3 Economic Insurance Schemes

Economic Insurance Schemes

Modi launches 3 Economic Insurance Schemes

Prime Minister Narendra Modi recently launched 3 Economic insurance schemes for the benefit of workers in the unorganized sector. The three schemes will focus on pension for senior workers in the unorganized sector, insurance in the case of accidents and life insurance in the event of death. The Prime Minister said that for a nation of 1.2 billion people, 80-90% do not have access to any kind of pension or insurance. This is quite an alarming figure. This is because having an insurance or pension scheme requires one to have a bank account, and despite the nationalization of banks, only 150 million people in the country have bank accounts.

The Atal Pension Yojana aims at providing pension to the senior workers in the unorganized sector. Workers will receive fixed amounts every month between Rs.1000 and Rs.5000 at the age of 60. The amount they receive will depend on the contribution they make throughout their working years. For an 18 year old to receive Rs.1000, the person will have to contribute Rs.42 per month for the next 42 years. It draws on the existing Swavalamban scheme set up for the same purpose, but now the focus is to increase the enrolment in the scheme.

The Pradhan Mantri Suraksha Bima Yojana and Pradhan Mantri Jeevan Bima Yojana aim to provide insurance for workers in the unorganized sector. One would only need to hold a Jan Dhan bank account to avail any of these three schemes. Any holder is entitled to an accident insurance of Rs.2 lakh at a premium of Rs.12 a year under the Suraksha Bima Yojana, and workers under age 50 can get insurance of up to Rs.2 lakh for an annual premium of Rs.330 under the Jeevan Bima Yojana. These schemes will be offered throught LIC, India, and other banks that want to tie up with them.

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