The distinguishing factors of Jan Suraksha policy
It is a fact that insurance is nothing new concept in India, but at the same time, the reach of insurance policies is limited. A huge number of insurance are working in India with certain services and products, but there are majority of people within the rural areas who are not covered in any form of insurance. Herein lays the importance of Jan Suraksha policy of the Prime Minister Narendra Modi. The people of such rural areas are mostly below the poverty lines and are not able to afford any insurance for them. PM Jan Suraksha policy is aimed to reach such people with the benefitted insurance schemes.
Divisions of Jan Suraksha policy
The insurance schemes of Jan Suraksha policy shall be divided into three schemes, the first is known as the Pradhan Mantri Suraksha Bima Yojana, the second one is known as the Pradhan Mantri Jeevan Jyoti Bima Yojana, and the third is called Atal pension Yojana. The article is focused on the highlights regarding the schemes.
It needs to be mentioned that the three schemes are specifically created for three separate purposes. The first scheme of PM Suraksha Bima Yojana is for the insurances done regarding accidental death and disabilities among individuals. The second scheme of Pradhan Mantri Jeevan Jyoti Bima Yojana is created for the life insurance and the third scheme is known as Atal Pension Yojana which is for the pension. The government has planned to make use of as much technology as possible for reaching out to the beneficiaries.
The PM Suraksha Bima offers eligibility for the individuals aged between 18-70 years at a premium of 12 INR per annum. The premium shall be debited automatically from the insurance policy holder’s account. This is going to be beneficial for a lot of individuals because, due to certain age restrictions senior citizens are not able to create any insurance after the age of 60. The necessary documents are a proof of a bank account along with the Aadhar number linked to the account. Any individuals having such documents shall be able to fill up the form for the Suraksha Bima. There are not any major complexities or intense formalities for attaining the PM Suraksha Bima which is helpful for a lot of people who are not able to go through vigorous formalities and documents. An individual can opt for the renewal of same scheme every year or the account shall be auto debited in case of long term continual.
Jeevan Jyoti Bima Yojana
The next scheme is PM Jeevan Jyoti Bima Yojana. The eligibility criteria of this scheme include individuals within the age group of 18-50. But it needs to be remembered that, one of the beneficial factor of this scheme is, the individuals who are joining the PM Jeevan Jyoti Bima Yojana, does have the option of life coverage upto the age of 55 years. The advantage of this scheme for the people residing in rural areas is, only a bank account document is necessary for attaining this insurance. No other complex formalities need to be done. A lot of people in such areas do not have the proper knowledge or education to go through different procedures and thus it becomes convenient for the people if less number of documents or formalities is processed in gaining the insurance.
The APY (Atal Pension Yojana) has been launched in this year on June 1 and it is primarily focused on the unorganized sector. A pension is such an income that is undoubtedly a security for the senior citizens who are unable to work anymore after a certain age. An employee of a certain government organization earns pension on the accumulated contribution that has been made by the individual during the service period. Under the APY, the subscribers under the age of 40 shall receive a fixed monthly amount of Rs 1000 to Rs 5000 at the age of 60. This amount shall vary according to the contributions. This is going to be a helpful option for the old aged people who can rest assured about a certain income irrespective of their incapability to work. For making the scheme much more attractive, the government has also assured a co-contribution, which is in addition to the contribution made by the subscriber. But the benefits of co-contribution shall be availed within December 31st 2015. The minimum age of joining the APY is 18 and maximum age is 40.
In conclusion, it can be stated that though these schemes are really helpful for the poor and needy people, the insurance organizations claim that the business volumes can get really high but this pricing or premiums may not sustain in the long run. And if the premiums are increased, the chances of renewals might get reduced. Thus the claims settlement and post policy services are expected to face issues.