Insurance – Related Government Scheme
Pradhan Mantri Jeevan Jyoti Bima Yojana
- Pradhan Mantri Jeevan Jyoti Bima Yojana (PMJJBY) is a life insurance scheme launched by Prime Minister Shri Narendra Modi on 9th May 2015 in Kolkata, West Bengal.
- It is a one-year life insurance scheme that provides coverage of Rs. 2 lakh to the insured individual in case of his/her death due to any reason.
- The scheme is open to all savings bank account holders in the age group of 18-50 years, who give their consent to join/enable auto-debit, as per the scheme’s terms and conditions.
- The premium for the scheme is Rs. 330 per annum per member, which is auto-debited from the account holder’s savings bank account.
- It is part of the Pradhan Mantri Jan Dhan Yojana (PMJDY) initiative.
- PM Jeevan Jyoti Bima Yojana is implemented through various public and private sector banks, as well as regional rural banks and cooperative banks.
- All Public sectors participated in the scheme Pradhan Mantri Jeevan Jyoti Bima Yojana.
- Many private sector banks also participate in the scheme, including HDFC Bank, ICICI Bank, Axis Bank, Kotak Mahindra Bank, and IDBI Bank, etc.
- Recently Indian Post Payment Bank has announced launch of Pradhan Mantri Jeevan Jyoti Bima Yojana in partnership with PNB MetLife India’s Insurance company ltd. for its customer.
Pradhan Mantri Suraksha Bima Yojana
- The Pradhan Mantri Suraksha Bima Yojana (PMSBY) is an Indian government-backed accidental insurance scheme.
- It was launched by the Prime Minister, Narendra Modi, on 9th May 2015.
- The scheme provides accidental insurance coverage of Rs. 2 lakhs to the insured person for a premium of Rs. 12 per annum.
- The scheme is open to all savings bank account holders in the age group of 18 to 70 years.
- The insurance cover is available for a period of one year, which is renewable every year.
- The premium is automatically debited from the enrolled account.
- The scheme aims to provide financial security to people in case of accidental death or permanent disability.
- The Pradhan Mantri Suraksha Bima Yojana, or PMSBY, has enrolled almost 32 crore beneficiaries as of last year.
- government has introduced PMSSBY and PMJJBY to offer life and disability insurance to workers, among other things.
Pradhan Mantri Vaya Vandana Yojana
- Pradhan Mantri Vaya Vandana Yojana (PMVVY) is a pension scheme for senior citizens in India, launched by the government in 2017.
- It offers an assured return of 7.40% per annum for 10 years, payable monthly, to citizens 60 years and above and all the policies purchased till 31st March 2023.
- The scheme is administered by the Life Insurance Corporation of India (LIC).
- The maximum pension amount under PMVVY is Rs. 10,000 per month.
- The scheme is designed to provide a regular and guaranteed income stream to senior citizens during their golden years
Advantage of PMVVY
- PMVVY provides pension, death benefits, and maturity benefits.
- Depending on the pension mode chosen by the subscriber, PMVVY provides a pension for the policy term of 10 years.
- The purchase price of the policy is returned to the beneficiary on the death of the pensioner during the policy term of 10 years.
Disadvantage of PMVVY
- Limited Money Access: Following the purchase of PMVVY, your financial options are constrained.
- Premature Exit: In certain cases, such as a critical or terminal disease of the self or spouse, premature exit is permitted within the policy term.
- 98% of the Purchase Price is the surrender value that will be paid in certain circumstances.
Pradhan Mantri Fasal Bima Yojana
- Pradhan Mantri Fasal Bima Yojana (PMFBY) is an insurance scheme for farmers in India.
- Launched in 2016, it aims to provide financial support to farmers in the event of crop damage due to natural calamities, pests and diseases.
- The scheme provides for affordable insurance premium rates, with the government and the insurance companies sharing the costs.
- The scheme is optional for farmers and is implemented through participating insurance companies.
- The primary objective of PMFBY is to reduce the economic losses suffered by farmers and to provide a support system in case of crop damage, so that they can continue their farming activities with confidence.
- India’s Pradhan Mantri Fasal Bima Yojana (PMFBY) program was introduced by the Ministry of Agriculture & Farmers Welfare in New Delhi.