The Finance Minister in his Budget Speech 2015-16, announced two Social Security Schemes in the Insurance Sector, namely the Pradhan Mantri Suraksha Bima Yojana (PMSBY) and Pradhan Mantri Jeevan Jyoti Bima Yojana (PMJJBY).

The Pradhan Mantri Suraksha Bima Yojana will be a one year accident insurance cover for Rs. two lakhs, renewable from year to year. Under the scheme, accidental death and disability cover of Rs. two lakhs is offered on account of an accident to all saving bank account holders in the age groups of 18 to 70 years for a premium of ₹ 12/- per annum per member. The scheme would be offered/administered through Public Sector General Insurance Companies (PSGICs) and other General Insurance Companies willing to offer the product on similar terms with necessary approvals and tie up with Banks for this purpose.

The Pradhan Mantri Jeevan Jyoti Bima Yojana will be one year life cover, renewable from year to year. Under this scheme, life insurance cover of Rs. two lakhs for death due to any reason is offered to all saving bank account holders in the age group of 18 to 50 years for a premium of ₹ 330/- per annum per member. The scheme would be offered/administered through LIC and other Life Insurance companies willing to offer the product on similar terms with necessary approvals and tie ups with Banks for this purpose.

The said schemes are being launched very soon. Premium under both these schemes will be paid by the subscribers and no subsidy has been sought on the premium by the Insurance Companies.

This was stated by Shri Jayant Sinha, Minister of State in Ministry of Finance in written reply to a question in the Lok Sabha today.

Social security insurance schemes provide standardized bank-linked accidental and life cover to eligible savers with subscriber-paid premiums. Two government social security insurance schemes provide annually renewable accidental death and disability cover and life insurance cover to eligible saving bank account holders. The accidental cover is offered through public sector and other general insurers, and the life cover through LIC and other life insurers, each on standardized terms requiring insurer approvals and bank tie-ups. Subscribers pay the premiums and the schemes rely on bank-insurer arrangements for enrollment and administration.