Pradhan Mantri Suraksha Bima Yojana for UPSC&STATE PCS EXAM

Pradhan Mantri Suraksha Bima Yojana Completed 8 years

The eight-year social security net provided by the Pradhan Mantri Suraksha Bima Yojana (PMSBY), Pradhan Mantri Jeevan Jyoti Bima Yojana (PMJJBY), and Atal Pension Yojana (APY) was just concluded.

The government introduced APY to meet the needs in old age and launched two insurance plans, PMJJBY and PMSBY, to provide financial security for those from the unorganised sector of the population.
The Prime Minister introduced these programmes in Kolkata, West Bengal, in May 2015.

UPSC Civil Services Examination, Previous Years Questions

Q.Regarding ‘Atal Pension Yojana’, which of the following statements is/are correct? (2016)

It is a minimum guaranteed pension scheme mainly targeted at unorganized sector workers.
Only one member of a family can join the scheme.
Same amount of pension is guaranteed for the spouse for life after subscriber’s death.

Select the correct answer using the code given below:

(A) 1 only

(B) 2 and 3 only

(D) 1, 2 and 3

Ans: C

IMPORTANT LINKS

What is Pradhan Mantri Suraksha Bima Yojana (PMSBY)?

Scheme: This is a one-year accidental insurance plan that can be renewed annually, providing coverage for accidental death or disability.
Eligibility: The programme is open to everyone between the ages of 18 and 70 who has a post office or savings bank account.
Benefits: Rs. 2 lakh (Rs. 1 lakh in the event of a partial disability) is covered under accident-related death and disability insurance.
Achievements: Over 28.37 million people have been enrolled in the programme cumulatively as of today, and 97,227 claims have received payments totaling Rs. 1,930 crore.

What is Atal Pension Yojana (APY)?

Background: A comprehensive social security system for all Indians, particularly the underprivileged, the impoverished, and those employed in the unorganised sector, was intended to be established through the Atal Pension Yojana (APY).

The government is taking this endeavour to give those working in the unorganised sector financial stability and to cover any future needs.

Administered By: Through the National Pension System (NPS), the Pension Fund Regulatory and Development Authority (PFRDA) is involved.

Eligibility: All bank account holders between the ages of 18 and 40 are eligible for this system, and the contributions vary depending on the specified pension amount.

Benefits: At the age of sixty, subscribers will get a guaranteed minimum monthly pension of either Rs. 1000, Rs. 2000, Rs. 3000, Rs. 4000, or Rs. 5000, depending on the payments they made after enrolling in the plan.

Contribution by Central Government: The government would guarantee the minimum pension, meaning that in the event that the corpus of contributions accrued achieves a lower return on investment than anticipated and is insufficient to give the minimum guaranteed pension, the Central Government would cover the shortfall.

On the other hand, subscribers would receive more pension payments if investment returns were higher.

Payment frequency: Contributions to APY can be made by subscribers on a monthly, quarterly, or half-yearly basis.

Achievements:The scheme has more over 4 crore subscribers as of right now.

What is Pradhan Mantri Jeevan Jyoti Bima Yojana (PMJJBY)?

About: This one-year life insurance scheme provides coverage for any cause of death and is renewed annually.

Eligibility: The scheme is open to those aged 18-50 with savings bank or post office accounts.

Benefits: A premium of Rs. 330/- per year provides a life cover of Rs. 2 lakh in event of death for any reason.

Achievements: As of today, the cumulative enrolments under the scheme have been more than 12.76 crore and an amount of Rs. 11,522 crores have been paid for 5,76,121 claims.

Pension Fund Regulatory and Development Authority (PFRDA)

The Statutory Authority, formed by Parliament, regulates and promotes the National Pension System (NPS), ensuring its orderly growth.
It is overseen by the Ministry of Finance’s Department of Financial Service.

What are the Significances of these Schemes?

With a focus on protecting residents from unanticipated risks and losses as well as financial uncertainty, these three social security programmes are committed to ensuring the welfare of their fellow citizens.
The PMJJBY and PMSBY offer low-cost life and accident insurance, while the APY allows for current savings towards a regular income in retirement.
The number of people who have participated and benefited from these schemes over the last seven years attests to their success.
Low-cost insurance and guaranteed pension systems now provide financial stability to all members of society, previously only accessible to a chosen few.