India 2018

Finance 257
under any statutory social security scheme. The APY is focussed on all citizens
in the unorganised sector, who join the National Pension System (NPS)
administered by the Pension Fund Regulatory and Development Authority
(PFRDA).
Any Indian citizen between 18-40 years of age can join through their savings
bank account/post office savings account. Minimum pension of ` 1,000 or ` 2,000
or ` 3,000 or ` 4,000 or ` 5,000 is guaranteed by the Government of India to
the subscriber at the age of 60 years, with a minimum monthly contribution
(for those joining at age at 18) of 42 or 84 or 126 or 168 or 210, respectively. After
the subscriber's demise, the spouse of the subscriber shall be entitled to receive
the same pension amount as that of the subscriber until the death of the spouse.
After the demise of both the subscriber and the spouse, the nominee of the
subscriber shall be entitled to receive the pension wealth, as accumulated till
age 60 of the subscriber.
Pradhan Mantri Jeevan Jyoti BimaYojana
Government announced three ambitious social security schemes pertaining to
the insurance and pension sectors, namely Pradhan Mantri Jeevan Jyoti
BimaYojana (PMJJBY), Pradhan Mantri Suraksha BimaYojana (PMSBY) and the
Atal Pension Yojana (APY) to move towards creating a universal social security
system, targeted especially for the poor and the under-privileged. PMJJBY is a
one year life insurance scheme, renewable from year to year, offering coverage
of two lakhs rupees for death due to any reason and is available to people in the
age group of 18 to 50 years (life cover up to 55 years of age) having a bank
account who give their consent to join and enable auto-debit. It involves
convenient bank account linked enrolment with implementation in IT mode,
and premium payment through auto-debit from the bank account of the
subscriber. Implementation of this scheme enables affordability and targeting
in favour of the poor and the under-privileged and would address the situation
of low penetration of life insurance in the country.
Pradhan Mantri Suraksha Bima Yojana
The Pradhan Mantri Suraksha Bima Yojana (PMSBY) is a one year personal
accident insurance scheme, renewable from year to year, offering coverage for
death/disability due to an accident and is available to people in the age group
of 18 to 70 years having a bank account who give their consent to join and
enable auto-debit. Under the said scheme, risk coverage available will be ` 2
lakh for accidental death and permanent total disability and ` 1 lakh for
permanent partial disability. It involves convenient bank account linked
enrolment with implementation in IT mode, and premium payment through
auto-debit from the bank account of the subscriber. Implementation of this
scheme enables affordability and targeting in favour of the poor and the underprivileged
and would address the situation of low penetration of accident
insurance in the country.