We find safety in anything that’s government. Well, everyone wants assurance. Assurance that our money will be safe, assurance that we won’t face hardships, and so much more. It’s the same motive when it comes to government insurance too, isn’t it? So, here we’ll talk about government insurance plans. Insurance plans have become the heart of security because we can’t stop uncertainties or look into the future – but if it ever comes our way, we can be prepared.
Insurance plans have especially come to the forefront when the pandemic came in, and that is bound to happen – we have not seen something like this since the Spanish Flu. So, let’s talk more about government insurance plans, can we?
Government Insurance Plans 2021
Here are the government insurance plans mentioned below.
Pradhan Mantri Suraksha Bima Yojana(PMSBY)
The Scheme is open to persons between the ages of 18 and 70 who have a bank account and sign up for or allow auto-debit on or before May 31st for the coverage period of 1 June to 31 May on an annual renewal basis.
- The primary KYC for the bank account would be Aadhar.
- The policy provides Rs. 2 lakh in risk coverage for accidental death and total disability, and Rs. 1 lakh in risk coverage for partial impairment.
- The annual premium of Rs. 12 will be deducted in one installment from the account holder’s bank account using the ‘auto-debit’ function.
The program is being offered by Public Sector General Insurance Companies (PSGICs) or any other general insurance company willing to offer the product on identical conditions with the requisite approvals and banking partnerships.
Life Cover under Pradhan Mantri Jan Dhan Yojana (PMJDY)
In his Independence Day speech, the Prime Minister launched a comprehensive financial inclusion initiative aimed at a huge number of people who are currently deprived of even simple financial services. In this regard, the Pradhan Mantri Jan DhanYojana (PMJDY) aims to provide a basic bank account to every family that did not previously have one. The bank account includes a RuPay debit card with an Rs. 1 lakh accidental insurance cover.
- During the introduction on August 28, 2014, in New Delhi, the Prime Minister additionally announced an Rs. 30,000/- life insurance cover for people who open a bank account with a RuPay debit card before January 26, 2015, in addition to the Rs. 1 lakh accident insurance cover.
- This Rs. 30,000/- life insurance cover under the Pradhan Mantri Jan DhanYojana provides life insurance cover to the deceased’s family in the event of the life assured’s death for any reason.
- The scheme intends to give protection to families from economically disadvantaged backgrounds who cannot afford to purchase such insurance directly.
- The Government of India bears the premium subscription for the PMJDY life cover.
Varishtha Pension Bima Yojana
During its last term in office, the NDA government implemented the Varishtha Pension BimaYojana (VPBY) as a pension program for senior persons. A total of 3.16 lakh annuitants will benefit from the scheme, with a corpus of Rs. 6,095 crore. The revived Varishtha Pension BimaYojana (VPBY) was formally launched by the Finance Minister on 14.08.2014 and is now open from 15th August 2014 to 14th August 2015.
- Subscribers who pay a lump sum amount under the Scheme receive a pension at a guaranteed rate of 9% each year (payable monthly).
- Any difference between the guaranteed return and the return earned by the LIC on the fund is accounted for by the Government of India through a subsidy payment in the scheme.
- The system allows the annuitant to withdraw the deposit money after fifteen years of purchasing the policy.
Pradhan Mantri Jeevan Jyoti Bima Yojana(PMJJBY)
The PMJJBY is available to persons between the ages of 18 and 50 who have a bank account and agree to join/allow auto-debit. The primary KYC for the bank account would be Aadhar. The Rs. 2 lakh life insurance policy would be renewed for a duration of one year, from 1st June to 31st May.
- The premium is Rs. 330 per annually, which is to be auto-debited from the subscriber’s bank account in one installment on or before the 31st May of each annual coverage term under the scheme, as per preference.
- The major Pradhan Mantri Jeevan Jyoti Bima yojana benefits include the Life Insurance Corporation and all other life insurers wanting to offer the product on identical conditions with relevant approvals and tie-up with banks.
Pradhan Mantri Fasal Bima Yojana(PMFBY)
On February 18, 2016, Prime Minister Narendra Modi launched the Pradhan Mantri Fasal Bima Yojna. In Kharif 2016, 21 states adopted the scheme, while in Rabi 2016-17, 23 states and two UTs did so. According to data as of March 31, 2017, around 3.7 crore farmers have insured in Kharif 2016 for 3.7 crores of land at a premium of Rs 16212 crore for a value insured of Rs 128568.94 crore. PMFBY provides comprehensive crop loss insurance, supporting farmers in stabilizing their income.
- The Scheme is applicable to all Food and Oilseed crops, as well as Annual Commercial/Horticultural Crops, for which past yield data is available and a sufficient number of Crop Cutting Experiments (CCEs).
- General insurance companies that have been appointed as agents carry out the scheme.
Restructured Weather Based Crop Insurance Scheme (RWBCIS)
The Prime Minister launched the RWBCIS on February 18, 2016. In Kharif 2016, 12 states implemented the plan, while 9 states implemented it in Rabi 2016-17.
- The Weather Based Crop Insurance Scheme (WBCIS) is designed to protect insured farmers from financial loss due to crop loss caused by bad weather conditions such as rainfall, temperature, wind, humidity, and so on.
- WBCIS compensates cultivators for deemed crop losses.
- Pay-out mechanisms are designed to the level of losses assessed to have occurred as a result of the weather triggers.
There are more insurance plans from the government, and if you fit into the box of eligibility you can apply for them in no time.