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Government Schemes: Insurance and Pension

Published on Monday, December 25, 2023

Pradhan Mantri Jeevan Jyoti Bima Yojana

Nature
  • The scheme is a one year cover Term Life Insurance Scheme, renewable from year to year, offering life insurance cover for death due to any cause.
Benefits
  • Rs.2 lakh is payable on a subscriber’s death due to any cause. The premium payable is Rs.330/- per annum per subscriber.
How will the premium be paid?
  • The premium will be deducted from the account holder’s bank account through ‘auto debit’ facility in one instalment, as per the consent to be given on enrolment. Members may also give one-time mandate for auto-debit every year till the scheme is in force, subject to re-calibration that may be deemed necessary on review of experience of the scheme.
Who will offer/administer the scheme?
  • The scheme would be offered / administered through LIC and other Life Insurance companies willing to offer the product with necessary approvals on similar terms, in collaboration with participating Banks. Participating banks are free to engage any such life insurance company for implementing the scheme for their subscribers.
Who will be eligible to subscribe?
  • All individual (single or joint) bank account holders in the age 18 to 50 years in participating banks will be entitled to join. In case of multiple bank accounts held by an individual in one or different banks, the person would be eligible to join the scheme through one bank account only.
Are NRIs eligible for coverage under PMJJBY?
  • Any NRI having an eligible bank account with a bank branch located in India is eligible for purchase of PMJJBY cover subject to fulfilment of the terms and conditions relating to the scheme.
When can the assurance on life of the member terminate?
  • The assurance on the life of the member shall terminate/be restricted accordingly on any of the following events:
    • On attaining age 55 years (age near birth day), subject to annual renewal up to that date (entry, however, will not be possible beyond the age of 50 years).
    • Closure of account with the Bank or insufficiency of balance to keep the insurance in force.
    • In case a member is covered through more than one account and premium is received by LIC / insurance company inadvertently, insurance cover will be restricted to Rs. 2 Lakh and the premium paid for duplicate insurance(s) shall be liable to be forfeited.

Pradhan Mantri Suraksha Bima Yojana (Pmsby)

Nature of the scheme?
  • The scheme is a one year cover Personal Accident Insurance Scheme, renewable from year to year, offering protection against death or disability due to accident.
Benefits under the scheme and premium payable
  • Premium payable is Rs.20/- per annum per member
Benefits
Sum insured
Death

Rs. 2 Lakh
Total and irrecoverable loss of both eyes or loss of use of both hands or feet or loss of sight of one eye and loss of use of hand or foot

Rs. 2 Lakh
Total and irrecoverable loss of sight of one eye or loss of use of one hand or foot

Rs. 1 Lakh
How will the premium be paid?
  • The premium will be deducted from the account holder’s bank account through ‘auto debit’ facility in one instalment, as per the consent to be given on enrolment.
Who will offer/administer the scheme?
  • The scheme is offered / administered through the Public Sector General Insurance Companies (PSGICs) and other General Insurance companies willing to offer the product with necessary approvals on similar terms, in collaboration with participating Banks.
Who will be eligible to subscribe?
  • All individual (single or joint) bank account holders in the age 18 to 70 years in participating banks will be entitled to join. In case of multiple bank accounts held by an individual in one or different banks, the person would be eligible to join the scheme through one bank account only.
When can the accident cover assurance terminate?
  • The accident cover of the member shall terminate / be restricted accordingly on any of the following events:
    • On attaining age 70 years (age nearer birth day).
    • Closure of account with the Bank or insufficiency of balance to keep the insurance in force.
    • In case a member is covered through more than one account and premium is received by the insurance company inadvertently, insurance cover will be restricted to one account and the premium shall be liable to be forfeited.

Atal Pension Yojana

Atal Pension Yojana (APY), a pension scheme for citizens of India, is focused on the unorganised sector workers. Under the APY, guaranteed minimum pension of Rs. 1,000/- or 2,000/- or 3,000/- or 4,000 or 5,000/- per month will be given at the age of 60 years depending on the contributions by the subscribers.
Who can subscribe to APY?
Any Citizen of India can join APY scheme. The following are the eligibility criteria:-
    • The age of the subscriber should be between 18 - 40 years.
    • He I She should have a savings bank account.
    • The subscriber must contribute for a minimum 20 years, Pension returns are given after the subscriber turns 60.
For how many Years Government will co-contribute?
  • The co-contribution of the Government of India is available for 5 years, i.e., from the Financial Year 2015-16 to 2019-20 for the subscribers, who join the scheme during the period from 1st June, 2015 to 31st December 2015 and who are not covered by any Statutory Social Security Schemes and are not income tax payers. The Government co-contribution is payable to eligible Permanent Retirement Account Number (PRANs) by the Pension Fund regulatory and Development Authority (PFRDA) after receiving the confirmation from Central Record Keeping Agency once in a year.
Who are the other social security schemes beneficiaries not eligible to receive Government co-contribution under APY?
  • The beneficiaries, who are covered under statutory social security schemes, are not eligible to receive Government co-contribution under APY. For example, members of the Social Security Schemes under the following enactments would not be eligible to receive Government co-contribution under APY:
    • Employees' Provident Fund and Miscellaneous Provision Act, 1952.
    • The Coal Mines Provident Fund and Miscellaneous Provision Act, 1948.
    • Assam Tea Plantation Provident Fund and Miscellaneous Provisìon, 1955.
    • Seamens' Provident Fund Act, 1966.
    • Jammu Kashmir Employees' Provident Fund and Miscellaneous Provision Act,1961.
    • Any other statutory social securìty scheme.
How much pension will be received under APY?
  • Minimum guaranteed monthly pension of Rs 1,000/- or 2,000/- or 3,000/- or 4,000 or 5,000/- per month will be given from the age of 60 years onwards depending on the contributions by the subscribers.
What is the withdrawal procedure from APY?
  • On attaining the age of 60 years:
  • Upon completion of 60 years, the subscribers will submit the request to the associated bank for drawing the guaranteed minimum monthly pension or higher monthly pension, if investment returns are higher than the guaranteed returns embedded in APY. The same amount of monthly pension is payable to spouse (default nominee) upon death of subscriber. Nominee will be eligible for return of pension wealth accumulated till age 60 years of the subscriber upon death of both the subscriber and spouse.
Exit before 60 years of age
  • Exit before 60 years of age is generally not permitted, it may be permitted by PFRDA only in exceptional circumstances, i.e., in the event of the death of beneficiary or terminal disease etc., in-line with the provisions for pre-mature exit under NPS.

Pradhan Mantri Vaya Vandana Yojana

  • Pradhan Mantri Vaya Vandana Yojana (PMVVY) is a government-backed pension scheme for senior citizens aged 60 years and above. The scheme was launched in May 2017 and is administered by the Life Insurance Corporation of India (LIC).
Eligibility criteria:
  • Age: 60 years and above
  • Permanent resident of India
Features:
  • The scheme offers a guaranteed pension for a period of 10 years.
  • The pension amount is payable monthly, quarterly, half-yearly, or annually.
  • The pension amount is calculated based on the age of the subscriber and the amount of premium paid.
  • The minimum premium amount is Rs. 1,000 per month.
Interest rate:
  • The interest rate for PMVVY is fixed by the government every year. For the financial year 2023-24, the interest rate is 7.4% per annum.
Tax benefits:
  • The premium paid under PMVVY is eligible for tax deduction under Section 80C of the Income Tax Act, 1961.
How to apply:
  • To apply for PMVVY, the subscriber can visit the nearest LIC office or fill out an online application form. The application form can be downloaded from the LIC website.

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