Centre’s insurance scheme for poor, launched in 2015, still a long way to go

Despite low premiums, the Modi government’s ambitious social security schemes launched in 2015 have failed to make any notable headway.

Published: 21st May 2018 02:04 AM  |   Last Updated: 21st May 2018 04:42 AM   |  A+A-

A cashier displays the new 2000 Indian rupee banknotes inside a bank in Jammu, November 15, 2016. (Photo | Reuters)

Image used for representational purpose only (File Photo | Reuters)

Express News Service

NEW DELHI: Despite low premiums, the Modi government’s ambitious social security schemes launched in 2015 have failed to make any notable headway.

The life insurance scheme Pradhan Mantri Jeevan Jyoti Bima Yojana (PMJJBY) and the accident insurance scheme Pradhan Mantri Suraksha Bima Yojana (PMSBY) — introduced to ensure social security to crores of under-privileged — could cover only 5 per cent and 13 per cent of eligible population respectively in last three years, reveals government data.

Both the schemes are offered through both public and private sector insurance companies, in tie up with scheduled commercial banks, regional rural banks and cooperative banks.

According to the department of financial services, 5.33 crore people have enrolled in PMJJBY which is only 5.05 per cent of the eligible population. Similarly, PMSBY has seen 13.40 crore enrolments (till March 20, 2018) which is about 13.20 per cent of the total eligible population. PMJJBY offers a renewable one year term life cover of Rs 2 lakh in the age group of 18 to 50 years, covering death due to any reason, for a premium of Rs 330 per annum.

Similarly, PMSBY offers a renewable one year accidental death cum disability cover in the age group of 18 to 70 years for a premium of Rs 12 per annum. The scheme also provides a cover of Rs 2 lakh for accidental death or total permanent disability and Rs 1lakh in case of permanent partial disability.

The PMSBY witnessed slightly higher enrolments compared to the PMJJBY because of lower premium which is mostly auto debited from bank accounts every year.

As part of the outreach efforts to facilitate access to the scheme, officials claim that banks and insurance companies have organised camps. Banners displaying features of the scheme were also installed at all banks and insurance company branches. Moreover, media based publicity campaign through local or national newspapers and advertisements on television and radio were also undertaken.

“The government, as well as the public sector insurance companies such as Life Insurance Corporation of India (LIC), had organised campaign to create awareness amongst large sections of population and also carried outreach efforts to facilitate access to the schemes,” claimed an official.

However, insurance agents claimed that there is hardly any effort by the government agencies to promote these schemes. “Banks and insurance agencies are not doing anything on ground for these schemes. Poor section of the society are not even aware of the benefits of these schemes,” said Yogesh Shukla, a Delhi based insurance agent.


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