One of the most important things that the Government keeps in mind while framing the Annual Budget is the Social Security of the citizens. It is one of the most crucial aspects as it contributes heavily to the overall growth of the nation. The Government of India has launched various Insurance-related schemes in the past. Be it Pradhan Mantri Jeevan Jyoti Bima Yojana (PMJJBY), Pradhan Mantri Suraksha Bima Yojana (PMSBY), Aam Aadmi Bima Yojana (AABY) or Pradhan Mantri Fasal Bima Yojana (PMFBY), the Government always ensured that maximum benefit of the scheme must be provided to the citizens so that their economical, as well as overall development, can be achieved.
LIC AAO 2020 notification has been released and the Prelims examination of the same has been scheduled to be held on April 04, 2020. In order to assist you in the General awareness section, I have come up with Insurance-related schemes launched by the Government of India. This topic will be very helpful from the exam point of view. Questions of 1 to 2 marks can be expected from this topic in the LIC AAO Mains exam 2020.
Following are some of the very important Insurances schemes that have been launched by the Government of India:
- 1 Pradhan Mantri Jeevan Jyoti Bima Yojana (PMJJBY)
- 2 Pradhan Mantri Suraksha Bima Yojana (PMSBY)
- 3 Aam Aadmi Bima Yojana (AABY)
- 4 Convergence of AABY with PMJJBY/PMSBY
- 5 Pradhan Mantri Fasal Bima Yojana (PMFBY):
- 6 Pradhan Mantri Jan Dhan Yojna (PMJDY) – Insurance Benefits
Pradhan Mantri Jeevan Jyoti Bima Yojana (PMJJBY)
Pradhan Mantri Jeevan Jyoti Bima Yojana (PMJJBY) is a government-backed Life insurance scheme. It was launched on May 09, 2015, in Kolkata, India. It is a renewable term insurance policy being LIC as the major insurer of the scheme. Other Insurer can also offer this scheme provided they have to link with the banks. The life cover can be availed till the attainment of 55 years of age. This scheme is linked under the bank accounts opened under Pradhan Mantri Jan Dhan Yojana scheme.
Some major key features of the scheme are given below:
- It covers accidental and natural death risk.
- The risk cover of the scheme is rupees 2 lakh.
- The edibility of this scheme is that a person should fall under the age of 18 to 50 years and must have a bank account.
- The premium to be deducted for this scheme is rupees 330 per annum. This premium will be debited for the bank account of the subscriber.
- The cover period is 1st June of each year to 31st May of the subsequent year.
- It offers tax benefits under 80C of the Income-tax Act.
- It is a group insurance scheme and does not require a health certificate or information on pre-existing diseases for joining.
Pradhan Mantri Suraksha Bima Yojana (PMSBY)
Pradhan Mantri Suraksha Bima Yojana (PMSBY) is a centrally sponsored scheme launched on May 09, 2015, alongside Pradhan Mantri Jeevan Jyoti Bima Yojana (PMJJBY). It was launched in Kolkata, India. The scheme will be offered by all Public Sector General Insurance Companies. Other insurers who are willing to join the scheme need to tie-up with banks for this purpose.
Some major key features of the scheme are provided below:
- It is an accidental death and disability insurance scheme.
- A person should be in between 18 to 70 years of age to avail the benefit of this scheme. Having a bank account is also mandatory.
- Risk cover of this scheme is as follows:
- Death – Rs.2 lakh
- Total disability- Rs.2L
- Partial disability Rs1L
- A premium that is paid for this scheme is rupees 12 per annum. This amount will be deducted from the subscriber’s bank account.
- The cover period is 1st June of each year to 31st May of the subsequent year.
Note: Total disability is referred to 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;
Partial disability refers to total and irrecoverable loss of sight of one eye or loss of use of one hand or foot.
Aam Aadmi Bima Yojana (AABY)
AABY or Aam Aadmi Bima Yojana (AABY) was a social security scheme for rural landless households. It came into effect from January 01, 2013.
All the existing schemes of Aam Aadmi Bima Yojana (AABY) were converged with the launch of new social security schemes – PMJJBY and PMSBY from June 01, 2017.
The Key Features of the original AABY were:
- Eligibility of age 18-59 years and should be head/earning member of a family below the poverty line.
- Life risk cover of Rs.30, 000 to the enrolled beneficiaries as per the eligibility conditions notified by the Government of India.
- Risk cover of the scheme was as follows:
- Accidental and Total Permanent Disability cover of Rs.75, 000
- Partial Permanent Disability cover of Rs.37, 500.
- Scholarship as “Add-On” benefits to eligible children of enrolled beneficiaries at Rs.100 per month.
- Premium to be paid was Rs.200 per annum.
- 50% of the total premium per member per annum under AABY is contributed by Government of India Social Security Fund maintained by LIC of India.
- In case of Rural Landless Household (RLH) remaining 50% premium shall be borne by the State Government/ Union Territory and in case of other occupational groups the remaining 50% premium shall be borne by the Nodal Agency and/or Member and/or State Government/ Union Territory
Convergence of AABY with PMJJBY/PMSBY
After the introduction of PMJJBY and PMSBY, existing members of AABY was divided into two parts as per according to the age.
Members in Age group 18 to 50:
- Will be converged with PMJJBY / PMSBY
- They will be provided insurance cover of Rs.2 lakh under PMJJBY for the premium of Rs.330/- per annum
- They will also be covered under PMSBY for Accidental and Disability Insurance for premium of Rs.12/- per annum.
- The Scheme is named as converged PMJJBY/ PMSBY with an annual premium of Rs.342/-
Members in Age group 51 to 59 years:
- They will continue in the existing format of AABY
- They will continue to get the existing insurance benefits with current premium rate of Rs.200/- under the Converged AABY Scheme.
Pradhan Mantri Fasal Bima Yojana (PMFBY):
Pradhan Mantri Fasal Bima Yojana (PMFBY) is the Crop insurance scheme of the government of India. It was launched on February 13, 2016 by Prime Minister Shri Narendra Singh Modi. PMFBY replaced the previous two crop insurance schemes National Agricultural Insurance Scheme (1999) and the Modified NAIS (2010).
In order to stabilize the income of the farmers, this scheme was launched to provide insurance coverage and financial support to the farmers in the event of failure of any of the notified crop as a result of natural calamities, pests & diseases.
Some Key Features of the Pradhan Mantri Fasal Bima Yojana (PMFBY) scheme:
- Premium to be paid by farmers is as follows:
- 2% premium for all Kharif crops
- 1.5% for all Rabi crops
- 5% for annual commercial and horticultural crops
- Balance premium to be paid by Government. There is no upper limit on government subsidy for premium.
- Comprehensive risk insurance to cover yield losses due to natural calamities, pests and disease and post-harvest losses cover for cyclonic and unseasonal rain
- Unit of insurance – Area Approach basis i.e. Defined Areas for each notified crop
Pradhan Mantri Jan Dhan Yojna (PMJDY) – Insurance Benefits
Pradhan Mantri Jan Dhan Yojana was as a financial inclusion program of the government. It was launched on August 28, 2014 by Prime Minister Shri Narendra Singh Modi. Under this scheme, Bank accounts were opened to provide access to banking facilities for all households across the country.
Life Insurance cover of Rs.30, 000 on death due to any reason will be provided by the Life Insurance Corporation of India under the following circumstances.
- The person should be between 18 to 59 years of age
- He/she should have been enrolled under PMJDY under August 15, 2014 to January 31, 2015
- He/she should also be holder of a valid RuPay Card)
In the case of Accident, an Accident Insurance Cover of Rs.1 Lakh will be provided by the Government through General Insurance Companies.
For new PMJDY accounts opened after August 28, 2018, Accidental insurance cover for new RuPay cardholders to be raised from Rs.1 lakh to Rs.2 lakh.
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