Insurance for all

“Insurance for all” a term delivered by Finance minister in budget proposal 2015 – 2016.

Its time to implement the term into existence. May 9^th 2015 Modi has planned to initiate 3 social security schemes, launch has been planned to happen in 116 locations PAN India.

Most proportionate Indians have not insured their life, health or any other property. Present GOI is working towards ensuring insured existence for every individual. So, budget 2015 -2016 was weighed along with 3 social security schemes open to every individual indiscriminately. The schemes will be implemented by the insurance players tied up with banks.

All the 3 schemes are linked with Jan Dhan Yojana accounts, Aadaar card and account holders mobile number (JAM) to ensure leakage proof in the system. Insurer should sign formal documents to accept auto debit facility for the social security systems. Other than auto- debit system no other mode has been open for payment. Details of debits will be sent to respective insurer’s mobile number. This created basic criteria to hold a bank account, aadhar card and a mobile phone to enroll for any of the 3 schemes. Enrollment has to be done within May 31^st if not the deadline can be extended till August.

3 schemes that are to be launched on May 9^th are:

Pradhan Mantri Jeevan Jyoti Bima Yojana (PMJJBY) is enlightened for life insurance coverage for people under age group 18 to 50 year. An amount of Rs.330 per annum will be debited from respective account and coverage of Rs.2 lakh will be given for death.

Pradhan Mantri Suraksha Bima Yojana (PMSBY) is applicable for people belonging to age group of 18 to 70 years for accidental death. Under this scheme Rs.12 per annum will be auto –debited from insurer’s account every year. Risk coverage is promised to pay Rs.2 lakh if complete disability or accidental death happen and Rs.1 lakh if partial disability happen. The premium paid is tax free to a limit of Rs.1 lakh beyond which 2% TDS will be charged.

Last but not least, 3^rd social security scheme is Atal pension Yojna eligible for people between 18 to 40 years, but enrolled individual has to contribute till 60 years of age. This scheme ensures that enrolled individual gets a pension of Rs.1000 to Rs.5000 every month after retirement depending on the premium. The happy news here is GOI has planned to contribute to 50% of individual’s contribution for 5 years from FY 2016 to FY 2020. But the individual has to enroll within December 31^st 2015 to get GOI’s contribution. Secure yourself.

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