Socially Oriented insurance Schemes


The details of the socially oriented insurance schemes which are currently being operated or partially sponsored by the Central Government targeted at vulnerable sections of the society are as follows:

  • Pradhan Mantri Jeevan Jyoti Bima Yojana (PMJJBY) and Pradhan Mantri Suraksha Bima Yojana (PMSBY) were launched on 9th May, 2015. The cover period under these schemes is 1st June of each year to 31st May of subsequent year. These schemes are offered/ administered through both public and private sector insurance companies, in tie up with scheduled commercial banks, regional rural banks and cooperative banks.
  • PMJJBY offers a renewable one year term life cover of Rupees Two Lakh to all subscribing bank account holders in the age group of 18 to 50 years, covering death due to any reason, for a premium of Rs.330/- per annum per subscriber, to be auto debited from subscriber’s bank account. Similarly, PMSBY offers a renewable one year accidental death cum disability cover to all subscribing bank account holders in the age group of 18 to 70 years for a premium of Rs.12/-per annum per subscriber to be auto debited from subscriber’s bank account. The scheme provides a cover of Rs. Two Lakh for accidental death or total permanent disability and Rs One Lakh in case of permanent partial disability.

The above schemes are on self-subscription basis and involves no Government contribution.

  • Government also launched the scheme namely ‘Pradhan Mantri Vaya Vandana Yojana’ (PMVVY) to protect elderly persons aged 60 years and above against a future fall in their interest income due to the uncertain market conditions, as also to provide social security during old age. The scheme provides an assured return of 8% per annum for 10 years. The differential return i.e. the difference between return generated by LIC and the assured return of 8% per annum is borne by Government of India as subsidy on annual basis .Mode of pension payment is monthly, quarterly, half-yearly and annually based on option exercised by the subscriber. The scheme was open initially for subscription for a period of one year i.e. from 4th May, 2017 to 3rd May, 2018. In pursuance to Budget Announcement 2018-19, the scheme has been extended up to 31st March, 2020.The minimum purchase price under the scheme is Rs.1.5 lakh per family for a minimum pension of Rs. 1,000/- per month and the maximum purchase price has been enhanced from Rs.7.5 lakh per family to Rs 15 lakh per senior citizen for a maximum pension of Rs.10,000/- per month.
  • Ministry of Agriculture implements Pradhan Mantri Fasal Bima Yojana (PMFBY) and Restructured Weather Based Crop Insurance Scheme (RWBCIS) with a view to provide comprehensive crop insurance cover against non-preventable natural risks at an affordable rate to farmers. The scheme is compulsory for loanee farmers and voluntary for non-loanee farmers for notified crops in notified areas. Uniform maximum premium of only 2%, 1.5% and 5% of the sum insured to be paid by farmers for all Kharif crops, Rabi crops and commercial/horticultural crops respectively. The difference between premium and the rate of insurance charges payable by farmers is provided as subsidy and shared equally by the Centre and State.
  • The Government of India also implements Ayushman Bharat namely; Pradhan Mantri Jan Arogya Yojana (PMJAY) a centrally sponsored scheme. PMJAY provides health coverage uptoRs. 5 lakh per family, per year for secondary and tertiary hospitalization to over 10.74 crore poor and vulnerable families (approximately 50 crore beneficiaries). PMJAY is an entitlement based scheme. This scheme covers poor and vulnerable families based on deprivation and occupational criteria as per SECC data. PMJAY provides cashless and paperless access to services for the beneficiary at the point of service in any (both public and private) empaneled hospitals across India. There is no restriction on family size, ensuring all members of designated families specifically girl child and senior citizens get coverage. About 1393 packages are available for the beneficiaries under PMJAY. The ratio of premium under PMJAY is 60:40 between Centre and State except North Eastern States and 3 Himalayan States where the ratio is 90:10 with an upper limit for Centre. In the case of Union Territories, the Central contribution of premium is 100% for UTs without legislature, while it is 60:40 for those with legislature.


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