Modi’s work for Insurance Sector in his tenure of 3 years.
‘Mitron’, Its been 3 years since we elected Mr. Narendra Modi as our Prime Minister and its been some of a ride from then (I am not talking about traveling rides Modi ji had, but a ride for us).
Here are some of the Highlights of it: Starting from the Surgical Strike, Digital India, Jan Dhan Yojna (Ensuring Bank Account for every Indian), Swacch Bharat Abhiyaan, Make in India, Demonetization (How can we ever forget this?) to GST.
But how many of us know the work of Mr. Modi ji for Insurance Sector, Only few of us.
Here, I’ll provide some insights of Insurance Schemes Launched under Modi’s Raj (Rule).
Work of Modi in Insurance Sector:
Here are the few Schemes launched under Modi’s three years tenure and its brief Discussion:
1.Pradhan Mantri Suraksha Bima Yojana(Accidental Insurance):
- When: 9th May, 2015.
- Role: It targets Social Security through insuring accidental deaths and permanent or partial disabilities especially for people living in rural areas who does not get access to these schemes whose benefits can be enjoyed at minimum cost.
- Offering and Cost: For a Premium of Rs 12 per year, the Subscriber will get Insurance Cover up to Rs 2 Lakhs.
- Eligibility: Subscriber should be 18 to 70 years old and must have Saving Account in any of the banks located in India.
- Target: As of May 2015, only 4% of India’s population has accidental insurance, this scheme aims to increase the number.
- Results: As of 24th April 2017, 10 crore people have already enrolled for this scheme. 9,705 claims have been disbursed against 12,975 claims received.
2.Pradhan Mantri Jeevan Jyoti Bima Yojana(Term Life Insurance):
- When: 9th May, 2015
- Role: It ensures a safe financial future for the policy holder.
- Offering and Cost: For a yearly Premium of Rs 330, the Subscriber will get Insurance Cover of Rs 2 Lakhs.
- Eligibility: Subscriber should be of age 18 to 70 years and must have Saving Account in any of the banks located in India.
- Target: As of May 2015, only 20% of India’s population has any insurance, this scheme aims to increase the number.
- Results: As of 24 April 2017, 3.11 crore people have already enrolled for this scheme. 60,422 claims have been disbursed against 63,767 claims received.
#Note: Both of the above mentioned Insurance plans falls under Government’s “Insurance Scheme for Jan Dhan Account holders”, where a person, if eligible, will get up to Rs 2 Lakhs of Sum Assured and its premium will be borne by Government for 3 years. Also one should note that this scheme has not been launched yet but it’s in Consideration.
3.Varishtha Pension Bima Yojana:
- When: January 2017.
- Role: To provide funds for seniors which are protected with guaranteed return with LIC as Insurance partner.
- Offering and Cost: For a single Premium (Investment) up to Rs 7.5 Lakhs, the Subscriber will get Guaranteed Return of rate 8% p.a. on Investment for a period of 10 years. Return can be in form of Monthly, Quarterly, Half-yearly or yearly basis (as per wish of the subscriber).
- Eligibility: Only Senior Citizens (Person aged 60 or more) can opt for this policy and they have to subscribe to this policy before 24th Jan, 2018.
4.Pradhan Mantri Fasal Bima Yojna(New Crop Insurance Scheme):
- When: Launched Jan, 2016. Implemented June, 2016.
- Role: To provide financial support to the farmers in the event of failure of any of the notified crop as a result of natural calamities, pests and diseases.
- Eligibility: This Scheme replaced the existing two crop insurance schemes, which were, National Agricultural Insurance Scheme (NAIS) and Modified NAIS. So, any farmer of India who were eligible for previous schemes is eligible for this.
|Crop Type||Premiums(% of Sum Assured) by farmers|
|Commercial and Horticultural||5%|
The remaining part of the premium is paid equally by the central and respective state governments.
5.National Health Protection Scheme: (yet to be implemented).
- Role: It offers health insurance to those who are below the poverty level.
- Offering: Rs 1 Lakh Health Insurance cover to the poor.
- Eligibility: A person must fall under the category of Below Poverty Line (BPL).
Apart from above mentioned Insurance schemes, the government under PM Modi also launched one social security scheme specifically related to pensions, which is
Atal Pension Yojna:
- When: 9th May, 2015.
- Role: It ensures Old age pension to those who are not covered under any other pension or social security scheme.
- Offering and Cost: It offers Pension between Rs 1000 to Rs 5000 a month from age 60.
The cost structure can be explained by an example- For a monthly pension of Rs 1,000, a 40-year-old subscriber will have to invest Rs 291 per month for 20 years, while an 18-year-old will have to contribute Rs 42 per month for 40 years.
- Eligibility: Any Person of age 18 to 40 years , who are willing to contribute to the scheme until they turn 60.
- Target: As of May 2015, only 11% of India’s population has any kind of pension scheme, this scheme aims to increase the number.
Review of the Schemes:
- Do we even need to think about having an accidental insurance merely for Rs 12 per year when we can spend more than this while parking our vehicle in a mall?(even then they say, “Parking at owners’ risk”). In my opinion, every Indian should have accidental insurance at this bargain price.
- A person who is sole bread earner for his family, must go for term life insurance policy for just Rs 330 per year because it’s not a pocket burner.
- A person can opt for both above policies for just Rs 342 per year and can get insurance cover up to Rs 4 Lakhs.
- Varishtha pension bima yojna is really good for someone who wants a stable income from their investment as the policy holder will get guaranteed fixed return of 8% p.a. of their investment for 10 years. Remember, the interest rate of fixed deposits now a days have fallen, so stable 8% income is better option for senior citizens.
- Health protection Scheme when implemented will be helpful for poor sections of society.
- Atal Pension Yojna can be useful for people working in unorganized sector, who doesn’t get access to pension schemes usually.
So, these are the schemes launched (some are yet to be implemented) under the Modi’s 3 year tenure as the PM of India.
How much do you think these schemes are useful for the society? How likely you are to take any of the above policies? How many of you already have any of the policy? Also suggest, what more work can be done by PM Modi for Insurance Sector?