Monday 4 May 2015

Pradhan Mantri Suraksha Bima Yojana

Pradhan Mantri Suraksha Bima Yojana,Pradhan Mantri Jeevan Jyoti Bima Yojana and Atal Pension Yojna

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 (PMJDY), I propose to work towards creating a universal social security system for all Indians that will ensure that no Indian citizen will have to worry about illness, accidents or penury in old age,” said Finance Minister Arun Jaitley in his budget speech on 1 Mar 2015.
Government announced  insurance schemes Pradhan Mantri Suraksha Bima Yojana (for Accidental Death and Disability), Pradhan Mantri Jeevan Jyoti Bima Yojana  (for life insurance) and Atal PensionYojna (for pension). This article gives the highlights of these schemes. These schemes would be available around 1 June 2015.
The government plans to use technology to the extent possible to reach out to the beneficiaries, thereby plugging leakages in the system. The JAM (Jan Dhan Yojana, Aadhaar and mobile) number trinity will allow government to transfer benefits in a leakage-proof, well-targeted and cashless manner

Pradhan Mantri Suraksha Bima Yojana

Highlights of the Pradhan Mantri Suraksha Bima Yojana (Pmsby – Scheme 1 – for Accidental Death Insurance) are
  • Eligibility: Available to people in age group 18 to 70 years with bank account.
  • Premium:  Rs 12 per annum.
  • Payment Mode: The premium will be directly auto-debited by the bank from the subscribers account. This is the only mode available.
  • Risk Coverage:  For accidental death and full disability – Rs 2 Lakh and for partial disability – Rs 1 Lakh.
  • Eligibility: Any person having a bank account and Aadhaar number linked to the bank account can give a simple form to the bank every year before 1st of June in order to join the scheme.  Name of nominee to be given in the form.
  • Terms of Risk Coverage: A person has to opt for the scheme every year. He can also prefer to give a long-term option of continuing in which case his account will be auto-debited every year by the bank.
  • Who will implement this Scheme?: The scheme will be offered by all Public Sector General Insurance Companies and all other insurers who are willing to join the scheme and tie-up with banks for this purpose.
  • The premium paid will be tax-free under section 80C and also the proceeds amount will get tax-exemption u/s 10(10D).But if the proceeds from insurance policy exceed Rs.1 lakh , TDS at the rate of 2% from the total proceeds if no Form 15G or Form 15H is submitted to the insurer

Pradhan Mantri Jeevan Jyoti Bima Yojana

Highlights of The Pradhan Mantri Jeevan Jyoti Bima Yojana  (PMJJBY – SCHEME 2 – FOR LIFE INSURANCE COVER)
  • Eligibility: Available to people in the age group of 18 to 50 and having a bank account. People who join the scheme before completing 50 years can, however, continue to have the risk of life cover up to the age of 55 years subject to payment of premium.
  • Premium:  Rs 330 per annum.  It will be auto-debited in one instalment.
  • Payment Mode:  The payment of premium will be directly auto-debited by the bank from the subscribers account.
  • Risk Coverage: Rs. 2 Lakh in case of death for any reason.
  • Terms of Risk Coverage: A person has to opt for the scheme every year.  He can also prefer to give a long-term option of continuing, in which case his account will be auto-debited every year by the bank.
  • Who will implement this Scheme?: The scheme will be offered by Life Insurance Corporation and all other life insurers who are willing to join the scheme and tie-up with banks for this purpose.

Atal Pension Yojna (APY)

The scheme will be launched on June 1 2015 and focus is on the unorganised sector.  A pension provides people with a monthly income when they are no longer earning. A Subscriber receives pension based on accumulated contribution out of his current income.Under the  Atal Pension Yojna Scheme (APY), the subscribers ,under the age of 40, would receive the fixed monthly pension of  Rs. 1000 to Rs 5000 at the age of 60 years, depending on their contributions.
To make the the pension scheme more attractive,  government would co-contribute 50 per cent of a subscriber’s contribution or Rs 1,000 per annum, whichever is lower to each eligible subscriber account for a period of of 5 years from 2015-16 to 2019-20The benefit of government’s co-contribution can be availed by those who subscribe to the scheme before December 31, 2015. 
Official Details of Atal Pension Yojna,including form, are now available athttp://financialservices.gov.in/APY.asp . 
Eligibility for APY:  Atal Pension Yojana (APY) is open to all bank account holders who are not members of any statutory social security scheme.
Age of joining and contribution period:   The minimum age of joining APY is 18 years and maximum age is 40 years. One needs to contribute till one attains 60 years of age.
Enrolment agencies:   All Points of Presence (Service Providers) and Aggregators under Swavalamban Scheme would enrol subscribers through setup  of National Pension System.  
The Table of contribution levels, fixed monthly pension to subscribers and his spouse and return of corpus to nominees of subscribers and the contribution period is given below.
  • if person joined Atal Pension Yojna at 35 years, he will contribute till age of 60 years ie 25 years.
    • If he wants monthly pension of Rs 1000 he would contribute Rs 181 a month. On his death his wife would get Rs 1000 per month and after her death the nominees will get 1.7 lakh.
    • If he wants monthly pension of Rs 3000 he would contribute Rs 543 a month. On his death his wife would get Rs 3000 per month and after her death the nominees will get 5.1 lakh.
  • If he joins at the age of 18 years to get a fixed monthly pension of Rs. 1,000 per month, the subscriber has to contribute on monthly basis Rs. 42 for Rs 5000 pension he has to contribute Rs. 210.
  • if he joins at the age of 40 years to get a fixed monthly pension of Rs. 1,000 per month, the subscriber has to contribute on monthly basis Rs. 291 and for Rs 5000 pension he has to contribute Rs. 1,454
Age of Joining
Years of Contribution
Indicative Monthly Contribution for Monthly Pension of Rs 1000 and Corpus of Rs 1.7 Lakh(in Rs.)
Indicative Monthly Contribution for Monthly Pension of Rs 2000and Corpus of  Rs 3.4 Lakh(in Rs.)
Indicative Monthly Contribution for Monthly Pension of Rs 3000 and and Corpus of Rs 5.1 Lakh(in Rs.)
Indicative Monthly Contribution for Monthly Pension of Rs 4000 and Corpus of Rs 6.8 Lakh(in Rs.)
Indicative Monthly Contribution for Monthly Pension of Rs 5000 and Corpus of  Rs 8.5 Lakh(in Rs.)
18
42
42
84
126
168
210
20
40
50
100
150
198
248
25
35
76
151
226
301
376
30
30
116
231
347
462
577
35
25
181
362
543
722
902
40
20
291
582
873
1164
1,454

Atal Pension Yojana (APY) and Swavalamban Yojana NPS Lite

Atal Pension Yojana (APY), will replace the previous government’s Swavalamban Yojana NPS Lite, which did not find much acceptance among people. The existing subscribers of Swavalamban Scheme would be automatically migrated to APY, unless they opt out. It is Government of India Scheme, which is administered by the Pension Fund Regulatory and Development Authority. The Institutional Architecture of NPS would be utilised to enrol subscribers under APY.
Our article National Pension Scheme covers NPS in detail including details of Swavalamban Yojana NPS Lite . Quoting from it .
Swavalamban scheme or the NPS Lite :is the extension of the variant available to the government employees. The government contributes Rs 1,000 per year to the pension account in NPS Lite, making pension possible for the economically-disadvantaged. Under the scheme, Govt. will contribute Rs.1000 per year to each NPS account opened in the year 2010-11 and for the next three years, that is, 2011-12, 2012-13 and 2013-14. As a special case and in recognition of their faith in the NPS, all NPS accounts opened in 2009-10 will be entitled to the benefit of Government contribution if they fulfil the eligibility criteria prescribed under these guidelines.
How to open Atal Pension Yojna Account
One has to Contact Bank branches under core banking platform and fill in the Atal Pension Yojana subscriber registration form  in English (pdf)  or  Hindi(pdf)
If one has a Bank Account
  • Submit the APY Form
  • Provide Aadhaar No and Mobile Number
  • Deposit the initial contribution according to the type of pension opted.
If one does not have a Bank Account
  • Provide KYC Documents and open a Bank account by providing KYC document and Aadhaar
  • Submit a signed APY proposal form
It’s Mandatory to provide
  • Savings Bank account details, mobile number and authorization letter to the bank for the monthly auto debit option for remittance of contribution. •
  • Spouse/Nominee details in APY form
Charges for not paying Monthly Contributions
In Atal Pension Yojna monthly contribution would automatically be deducted from Subscriber’s bank account. Subscriber should ensure that the Bank account to be funded enough for auto debit of contribution amount. If there is delay in contributions then Bank would levy penalty. The fixed amount of interest/penalty will remain as part of the pension corpus of the subscriber.
  • Rs 1 per month for contribution upto Rs. 100 per month.
  • Rs 2 per month for contribution upto Rs. 101 to 500 per month.
  • Rs 5 per month for contribution between Rs 501 to 1000 per month.
  • Rs 10 per month for contribution beyond Rs 1001 per month.
Discontinuation of payments of contribution amount shall lead to following:
  • After 6 months account will be frozen.
  • After 12 months account will be deactivated.
  • After 24 months account will be closed.
Exiting from Atal Pension Yojna
  • On attaining the age of 60 years: The exit from APY is permitted at the age with 100% annuitisation of pension wealth. On exit, pension would be available to the subscriber.
  •  In case of death of subscriber pension would be available to the spouse and on the death of both of them (subscriber and spouse), the pension corpus would be returned to his nominee.
  • Exit Before the age of 60 Years: Exit before 60 years of age is not permitted however it is permitted only in exceptional circumstances, i.e., in the event of the death of beneficiary or terminal disease.
Official FAQ  on Atal Pension Yojna in  English     Hindi

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