Soon-To-Be-Launched Pradhan Mantri Suraksha Bima Yojana

The Atal Pension Yojana Launched

The Prahan Mantri Jeevan Jyoti Bima Yojana Announced

Scheme to Subsidize the Premiums of Vulnerable Groups Such as Old Age Pensioners, BPL Card-Holders, Small and Marginal Farmers and Others

Integrated Education and Livelihood Scheme ‘Nai Manzil’ will be Launched for Minorities

The Union Finance Minister, Shri Arun Jaitely presenting the Union Budget 2015-16, here today said that a large proportion of India’s population is without insurance of any kind - health, accidental or life worryingly, as our young population ages, it is also going to be pension-less. Encouraged by the success of the Pradhan Mantri Jan Dhan Yojana, the Finance Minister proposed to work towards creating a universal social security system for all Indians, specially the poor and the under-privileged.

Shri Jaitley said that soon Pradhan Mantri Suraksha Bima Yojana will be launched to cover accidental death risk of ₹ 2 lakh for a premium of just ₹ 12 per year. Similarly, we will also launch the Atal Pension Yojana, which will provide a defined pension, depending on the contribution, and its period. To encourage people to join this scheme, the Government will contribute 50% of the beneficiaries’ premium limited to ₹ 1,000 each year, for five years, in the new accounts opened before 31st December, 2015.

The Finance Minister further said that the third Social Security Scheme that is to announce is the Pradhan Mantri Jeevan Jyoti Bima Yojana which covers both natural and accidental death risk of ₹ 2 lakhs. The premium will be ₹ 330 per year, or less than one rupee per day, for the age group 18-50.

Shri Jaitley said that there are unclaimed deposits of about ₹ 3,000 crore in the PPF, and approximately ₹ 6,000 crore in the EPF corpus. The Finance Minister proposed the creation of a Senior Citizen Welfare Fund, in the Finance Bill, for appropriation of these amounts to a corpus which will be used to subsidize the premiums of vulnerable groups such as old age pensioners, BPL card-holders, small and marginal farmers and others. Shri Jaitley informed that a detailed scheme would be issued in March.

The Finance Minister further said that special regard needs to be paid to the population of senior citizens in the country which is now approximately 10.5 crore, out of which over one crore are above the age of 80 years. 70% live in rural areas and a large number are in the BPL category. A sizable percentage of them also suffer from age related disabilities. The Finance Minister proposed a new scheme for providing Physical Aids and Assisted Living Devices for senior citizens, living below the poverty line.

Shri Jaitley said that in sum, these social security schemes reflect our commitment to utilize the Jan Dhan platform, to ensure that no Indian citizen will have to worry about illness, accidents, or penury in old age. Being sensitive to the needs of the poor, under-privileged and the disadvantaged, my Government also remains committed to the ongoing welfare schemes for the SCs, STs and Women. Despite serious constraints on Union finances, allocations made this year are as follows:

SC                   ₹ 30,851 crore

ST                    ₹ 19,980 crore

Women            ₹ 79,258 crore

The Minister announced an integrated education and livelihood scheme called ‘Nai Manzil’ will be launched this year to enable Minority Youth who do not have a formal school-leaving certificate to obtain one and find better employment. Further, to showcase civilization and culture of the Parsis, the Government will support, in 2015-16, an exhibition, ‘The Everlasting Flame’.

Universal social security: new insurance and pension schemes to extend life, accident and pension coverage with targeted subsidies. A programme of universal social security measures is announced to extend basic life, accidental and pension protections to the poor and under privileged by leveraging the Jan Dhan platform. Three principal schemes are proposed: a low cost accidental insurance plan, a defined benefit pension scheme with a temporary government co contribution incentive for new accounts, and a life insurance plan covering natural and accidental death for a nominal annual premium. A Senior Citizen Welfare Fund is proposed to appropriate unclaimed statutory savings to subsidize premiums for vulnerable groups and finance assistive devices for impoverished senior citizens.