Government Insurance Schemes in India

What is a government insurance plan?

Government insurance plan is an insurance policy / scheme sponsored by a state or the central govt. The objective and aim of such schemes are to offer affordable insurance to all the people, in different stratum of society. Incumbent and past Governments of India to add significance to social and collective welfare of community at large, have introduced various Insurance schemes from time to time. These insurance schemes are to take care of the less / under privileged mass, as well as mass at large. In these scheme premium differs from fully paid, partial paid to free depending upon various Schemes and enrolment.

Various government sponsored insurance schemes in India

1) Pradhan Mantri Jeevan Jyoti Bima Yojana -

This scheme offers life cover of Rs. 2 lakhs to the people of India. People aged 18 to 50 and having a bank account can avail of the benefits of this scheme for a premium of Rs. 330/- annually. The premium gets debited automatically from the insured person’s bank account.

2) Pradhan Mantri Suraksha Bima Yojana -

offers accident insurance to the people of India. People aged 18 to 70 and having a bank account can avail of the benefits of this scheme. The PMSBY  scheme offers an annual cover of Rs. 1 lakh for partial disability and Rs. 2 lakhs for total disability/death for a premium of Rs. 12. The premium gets debited automatically from the insured person’s bank account.

3) Life Cover under Pradhan Mantri Jan Dhan Yojana -

Pradhan Mantri Jan Dhan Yojana bank account comes with a built in accidental insurance cover of 1 lakh and Rs. 30,000/-life cover.

4) Pradhan Mantri Fasal Bima Yojana -

This scheme provides a comprehensive insurance cover against failure of the crop thus helping in stabilising the income of the farmers. The PMFBY covers all Food & Oilseeds crop and Annual Commercial / Horticultural crops.

5) Pradhan Mantri Vaya Vandana Yojana -

For benefit of citizens aged 60 & above, optioning holders to get assured guarantee return of 8% under this

6) Restructured Weather Based Crop Insurance Scheme (RWBCIS) -

Weather based Crop Insurance scheme aims to mitigate the hardship of the insured farmers against the likelihood of financial loss on account of anticipated crop loss resulting from adverse weather conditions relating to rainfall, temperature, wind, humidity, etc.

7) Varishtha Pension Bima Yojana -

For benefit of citizens aged 60 & above, optioning holders to get assured guarantee return of 9%. Read further about government health insurance for senior citizens. Associated Insurance Companies along with the objective of the Government, understand and tries to keep up the social good and welfare of the society. That is the reason, one can see 75% of the claims under the aforesaid Govt sponsored schemes are honored and paid by the Insurance Companies. However, the bona fide intention of the Government i.e. social and collective welfare of society, community and public at large, is taken for ride by sect of people, who are watching and waiting for opportunity to take the Govt scheme and associated Insurance Cos to cheat and garner fake insurance claims. If we go by data, one will be amazed to discover that more than 30% life insurance claims covered under Pradhan Mantri Jeevan Jyoti Bima Yojana and Pradhan Mantri Suraksha Bima Yojana were made within the first 30 days of the person joining the scheme^[1]. Upholding, Pradhan Mantri Jan Dhan Yojana is concerned Reserve Bank of India (RBI) had already notified that accounts opended under this scheme were “very vulnerable” to fraud and directed Banks to be on guard against such activities. The overall good intent of the Government is taken for toss by a few and that’s the reason for claims scrutiny by the Insurance Companies, which are somehow providing bad names to the Insurance companies for delay in claims settlement, wherein recently our Finance Minister has provided a guideline to settle the claims with seven days for which we are working on. Meanwhile, these scheme covers large population of the Rural India and 65% of the population living in rural India with the wide diversity and geographical vastness & unique challenges, we are working and finding a way to keep the social good & welfare motive of the government to be implemented in a system wherein, only the fair, worthy & needy population are served for better good.