It is an Accident Insurance Scheme by GOI to provide accident insurance cover mainly to poor, under-privileged and workers in the unorganised sector. This scheme provides death and disability cover due to an accident.
This scheme is effective from 01-June-2015 onwards.
Yearly premium is Rs. 12/- to get accident insurance cover of Rs. 2 Lakh.
Scheme can be renewed every year till the age of 70 years.
One has the option of providing one-time instruction for auto-debit every year till the policy is active or till one reaches 70 years of age.
Rs. 2 Lakhs received by nominee upon death of Policy Holder is exempted under Section 10D.
Any Indian Citizen having a Savings Bank (SB) Account with a Bank or Post Office can join the Scheme.
At any time one can have only one policy under the PMSBY Scheme.
Scheme coverage is from 1st June to 31st May. So it is renewed every year on or before 1st June.
Death or disability due to accidents is covered from day 1 of joining the scheme.
There are 2 types of benefits depending upon the amount of disability and accordingly the benefits will vary.
Death or disability due to accidents is covered from day 1 of joining the scheme.
There are 2 types of benefits depending upon the amount of disability and accordingly the benefits will vary.
Benefit Amount Rs. 2 Lakh
Disabilities due to an accident
total and irrecoverable loss of both eyes
total and irrecoverable loss of both hands
total and irrecoverable loss of both feet
loss of one eye and loss of one hand
loss of one eye and loss of one foot
Benefit Amount Rs. 1 Lakh
Disabilities due to an accident
Total and irrecoverable loss of one eye
Total and irrecoverable
loss of one hand
Total and irrecoverable loss of one foot
Scheme covers death or disability due to the following accidents.
any vehicle accidents (road, train, boat, flight)
murder
natural disasters like earthquake, flood, etc
any other accidents like snake bite, falling from tree
Note: Doesn’t cover suicide incidents.
NRI (Non Resident Indians) can join the scheme.
Scheme is offered and administered by Public Sector General Insurance Companies (PSGIC) and other General Insurance companies in partnership with Banks and Post Offices.
Prime Minister Jeevan Jyoti Bima Yojna
It is a pure Term Life Insurance scheme by GOI to provide life insurance cover mainly to poor, under-privileged workers in the unorganised sector. This scheme is effective from 01-June-2015 onwards.
Yearly premium is Rs. 330/- to get life insurance cover of Rs. 2 Lakh
Any Indian citizen between the age of 18 years and 50 years can join.
We need to provide "auto-debit" instructions to the concerned Bank or Post Office to deduct the yearly premium
One can renew the policy every year till the age of 55 years after that coverage is not available.
No medical Check up required. It covers death due to any reason.
Rs. 2 Lakhs received by the nominee is exempt under Section 10D.
One can join the PMJJBY scheme even if one has life insurance policies with other Insurance companies.
Scheme coverage is from 1st June to 31st May. So it is renewed every year on or before 1st June
There is a waiting period of 45 days. It means the coverage starts after 45 days of joining the scheme.
Death due to accidents is covered from day 1 of joining the scheme.
Nominees get Rs. 2 Lakh in case of death due to any reason during the policy coverage period.
All the events are covered.There are no exclusions. The reason for death can be anything as listed below:
natural death
accident
suicide
murder
natural disasters like earthquake, flood, etc
any other events
This scheme is offered and administered by LIC of India and other Life Insurance companies in partnership with Banks and Post Offices.
Prime Minister Shram Yogi Maan -dhan Yojna
Guaranteed Pension Scheme for workers of unorganised sectors by GOI to provide monthly pension of Rs. 3,000/- after the age of 60 years till life.
This scheme launched on 15-Feb-2019.
Open Account in Community Service Centre (CSC)
Monthly contribution amount is decided based on the age of the person.
Contribution payable every month till the age of 60 years
Government also makes equal and matching contributions.
Spouse also receive the guaranteed family pension of Rs. 1,500 every month till the end of her/his life.
After that, the family pension gets stopped. Any remaining amount in the Account tol be given back to the Government
Eligibility:
Age should be between 18 and 40 years.
Monthly income to be Rs. 15,000 or less.
Should not be an Income tax payer.
Should not be covered under NPS, ESIC,or EPFO .
Only for workers from unorganised sectors such as home based workers, street vendors etc.
Pay the first month's contribution by cash and thereafter contribute through an auto-debit facility from a Savings Bank (SB) account or Jan-Dhan account.
Contribution depends upon age at the time of joining the Scheme.
Need to have:
Aadhaar card number
Savings Bank (SB) account or
Jan-Dhan Account Mobile phone
The retirement age under this scheme is 60 years. It means regular pension is paid after 60 years of age.
If a member leaves the scheme within 10 years of joining, then the total contribution amount plus the interest earned with SB (Savings Bank) account interest rate is repaid. Government's contribution amount and it's interest is not payable.
If a member leaves the scheme after 10 years of joining but before 60 years of age, then total contribution amount plus the total accumulated interest in the fund or the interest amount earned with SB (Savings Bank) account interest rate, whichever is higher is repaid. Again, the Government's contribution amount is not paid.
If a member dies due to any reason before 60 years then the spouse can either continue the scheme by paying monthly contributions or leave the scheme. If the spouse decides to leave the scheme, then the spouse gets back the total contribution amount plus the total accumulated interest in the fund or the interest amount earned with SB (Savings Bank) account interest rate, whichever is higher. Spouses won't get the Government's contribution amount.
If a member becomes permanently disabled due to any reason before 60 years of age, then the spouse can either continue the scheme by paying regular monthly contributions or leave the scheme. If the spouse decides to leave the scheme, then the spouse gets back total contribution plus interest or the interest amount earned with SB (Savings Bank) account interest rate, whichever is higher. Spouses won't get the Government's contribution amount.
If a member doesn't pay contributions regularly or discontinues contributions, then the account will become in-active. Members can activate the account and continue it further on payment of outstanding due and penalty charges. Penalty amount is decided by the Government.
If any help or details about this scheme is required then contact can be made at the following facility centres:
Any LIC branch office
ESIC or EPF office
All Labour offices of Central and State Governments
Scheme is implemented through LIC and CSC (Community Service Centres). LIC is the Fund Manager and responsible for paying monthly pension. The amount collected under this scheme is invested as per the investment guidelines specified by the Government of India.
Atal Pension Scheme
APS is a Pension Scheme for all Indian citizens mainly targeting poor, under-privileged and workers in the unorganised sector for providing monthly guaranteed Pension on completion of 60 years of age.
Launched wef 1.6.2015
APS account is opened in a Bank. Five Monthly pension options are there:
Rs. 1,000,
Rs. 2,000,
Rs. 3,000,
Rs. 4,000
Rs. 5,000
Rs. 5,000 Contribution amount is decided according to the chosen monthly pension. Can pay the contribution monthly, quarterly or half-yearly basis
Pay contribution as per chosen payment frequency till 60 years of age
After 60 years of age receive guaranteed monthly pension (taxable) till the end of life
Spouse will receive the same guaranteed monthly pension till the end of her/his life
Nominees or Legal Heirs will receive the accumulated pension wealth. Amount is pre-defined when you join the scheme.
Contributions eligible for tax deduction under Section 80CCD(1). This is within the overall limit of Rs. 1.5 Lakh under Section 80C.
Contributions up to Rs. 50,000 per financial year are also eligible for additional tax deduction under section 80CCD(1B) over and above the limit of Rs. 1.5 Lakhs under Section 80C.
Monthly Pension received is taxable.
Eligibility:
Should be an Indian citizen
Should have a Savings Bank (SB) Account with Bank or Post Office
Should be between 18 years and 40 years
Can open only ONE account that is unique throughout life.
Those who opened the Account during the period 1-06-2015 to 31-3-2016 were paid a co-contribution by Govt under certain conditions.
Nominees receive the pre-defined lump sum retirement wealth, as given below, after the death of the account holder and the spouse:
Rs. 1,70,000 (for monthly pension of Rs. 1,000)
Rs. 3,40,000 (for monthly pension of Rs. 2,000)
Rs. 5,10,000 (for monthly pension of Rs. 3,000)
Rs. 6,80,000 (for monthly pension of Rs. 4,000)
Rs. 8,50,000 (for monthly pension of Rs. 5,000)
One has the option to change the monthly pension amount and contribution frequency, once in a financial year
Contribution amount will change according to the monthly pension you opt for.
There may be a possibility to get more than the guaranteed minimum monthly pension depending upon the returns earned.
If the returns are higher than the minimum guaranteed monthly pension then the Government will deposit the additional returns into your account.
In case returns are lower than the minimum guaranteed monthly pension then the Government will bear the loss and investors will still get the guaranteed minimum monthly pension.
It means that your monthly pension is guaranteed irrespective of the returns earned from your contributions.
Once contribution amount and frequency are decided, the contribution amount is debited from the Savings Bank account through the "Auto Debit" facility by the Bank and transferred to APS account.
Account holder to make sure sufficient balance in Savings Bank (SB) accounts for the contribution amount to be debited by the Bank on the specified date.
In case of insufficient fund penalty is charged:
For each delayed monthly contributions, Rs. 1/- per month for every Rs. 100/-, or part of it
For each delayed quarterly and half-yearly contributions, the penalty will be calculated accordingly
f contributions are discontinued, the accumulated amount in APS account will get reduced because of deduction of account maintenance charges and fees.
One has the option to pay delayed contributions along with a penalty if the APS account balance is NOT zero.
APS is regulated by PFRDA (Pension Fund Regulatory and Development Authority) through NPS (National Pension System) architecture.
The Government of India invests people' contributions in the following manner:
Government Securities – 45% to 50%
Debt Securities and Term Deposits of Banks – 35% to 45%
Equity and related instruments – 5% to 15%
Money Market Instruments – 0% to 5%
Asset Backed Securities – 0% to 5%
Premature closure of the account before the age of 60 years is allowed in the following situations. The benefits will also vary accordingly.
Death or life threatening disease - Nominees or Account holders (as the case may be) gets back the entire accumulated amount. This also includes Government co-contributions (if any) and the returns earned on both.
Leaving the scheme voluntarily before the age of 60 years--Account holder will get back contributions and the returns earned on them. But not the contribution from Govt.
One can check the status of an APS account in the following ways.
SMS through Mobile
Account Statements
Important things like account activation, contribution deposits, balance in the account are sent to mobile as SMS alerts.
Physical account statement every year.
NRI (Non Resident Indians) are eligible to open the account.
Nomination facility is available and it is compulsory to nominate at the time of opening the account.
If married, then the spouse will be the default Nominee.
If not married then one can nominate any other person. But should provide spouse details once get married
