Jaitley unveils social security schemes

The Modi government on Thursday announced three social security schemes with a focus on common and vulnerable citizens.

The three social security schemes—Pradhan Mantri Suraksha Yojana, Atal Pension Yojana and Pradhan Mantri Jeevan Jyoti Bima Yojana—would utilise the Jan Dhan platform to identify beneficiaries and connect with them.

“Encouraged by the success of the Pradhan Mantri Jan Dhan Yojana, I propose to work towards creating a universal social security system for all Indians, specially the poor and the under-privileged.

The soon-to-be-launched Pradhan Mantri Suraksha Bima Yojana will cover accidental death risk of Rs 2 lakh for a premium of just Rs 12 per year,” said Finance Minister Arun Jaitley while presenting the budget of 2015-16.

The Atal Pension Yojana will provide a defined pension, depending on the contribution, and its period.  To encourage people to join this scheme, the government will contribute 50 percent of the beneficiaries’ premium, limited to Rs 1,000 each year, for five years in the new accounts opened before December 31, 2015.

The third new scheme, Pradhan Mantri Jeevan Jyoti Bima Yojana, would cover natural as well as accidental death risk of Rs 2 lakh.  The premium would be Rs 330 per year, or less than one rupee per day for the age group 18-50.

“In sum, these social security schemes reflect our commitment to utilise the Jan Dhan platform to ensure that no Indian citizen will have to worry about illness, accidents, or penury in old age,” Arun Jaitley said.