Difference Between PMJJBY and PMSBY UPSC
Pradhan Mantri Jeevan Jyoti Bima Yojana (PMJJBY), Pradhan Mantri Suraksha Bima Yojana (PMSBY), and Atal Pension Yojana (APY) were launched on May 9, 2015, by Prime Minister Narendra Modi from West Bengal.
The government has introduced three social security schemes to ensure that citizens are protected from unexpected risks, losses, and financial uncertainties. These schemes aim to increase the reach of insurance and pension to offer affordable financial security to those who are poor or marginalized.
About Pradhan Mantri Jeevan Jyoti Bima Yojana (PMJJBY)
Pradhan Mantri Jeevan Jyoti Bima Yojana (PMJJBY) is a government-backed life insurance scheme launched by the Indian government.
- Eligibility: Available to people aged 18 to 50 years who have a bank or post office account. People who join before completing 50 years can continue up to 55 years subject to payment of premium.
- Premium: The premium for PMSBY is Rs. 436 per annum as of June 1, 2022. It will be auto-debited in one installment.
- Payment Mode: The premium will be directly auto-debited by the bank from the subscribers’ account.
- Risk Coverage: The scheme provides a sum of Rs. 2 lakh in case of death due to any reason.
- Terms of Risk Coverage: A person needs to opt for the scheme every year. Alternatively, they can choose to give a long-term option of continuing, in which case their account will be auto-debited every year by the bank.
- Implementation: The scheme is offered by Life Insurance Corporation (LIC) and all other life insurers who are willing to join the scheme and tie up with banks for this purpose.
- Achievement: As of April 26, 2023, more than 16.19 crore people have enrolled in the scheme and an amount of Rs. 13,290.40 crore has been paid for 6,64,520 claims.
About Pradhan Mantri Suraksha Bima Yojana (PMSBY)
Pradhan Mantri Suraksha Bima Yojana (PMSBY) is a government-backed accident insurance scheme that aims to provide accidental death and disability coverage to the Indian population, especially those belonging to the economically weaker sections of society.
- Eligibility: Available for people aged 18 to 70 years with a bank account.
- Premium: The premium was Rs. 12 per annum but increased to Rs. 20 per annum from June 1, 2022.
- Payment Mode: The premium is directly auto-debited by the bank from the subscriber’s account on or before the 1st of June of each annual coverage period.
- Risk Coverage:
- Death – Rs. 2 lakh
- Total and irrecoverable loss of both eyes or loss of use of both hands or feet or loss of sight of one eye and loss of use of hand or foot – Rs. 2 lakh
- Total and irrecoverable loss of sight of one eye or loss of use of one hand or foot – Rs. 1 lakh.
- Eligibility: Any person having a bank account and an Aadhaar number linked to the bank account can give a simple form to the bank every year before the 1st of June in order to join the scheme. The name of the nominee is to be given in the form.
- Terms of Risk Coverage: A person has to opt for the scheme every year. S/He can also prefer to give a long-term option of continuing in which case his/her account will be auto-debited every year by the bank.
- Implementation: 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.
- Government Contribution: Various Ministries can co-contribute premiums for various categories of their beneficiaries from their budget or from Public Welfare Fund created in this budget from unclaimed money. Common Publicity Expenditure will be borne by the Government.
- Achievement: As of April 26, 2023, more than 34.18 crore people have enrolled in the scheme and an amount of Rs. 2,302.26 crore has been paid for 1,15,951 claims.
About Atal Pension Yojana (APY)
Atal Pension Yojana (APY) is a social security scheme launched by the Government of India in May 2015. The scheme is aimed at providing a universal social security system for all Indians, especially those working in the unorganized sector, who do not have access to any formal pension scheme.
- Eligibility: The scheme is open to all Indians aged between 18 and 40 years.
- Benefits: APY provides a minimum guaranteed pension of Rs 1000 -Rs 5000 to the subscriber and his/her spouse after the age of 60 years, depending on the contribution made and the years of contribution.
- Contributions: The contribution amount depends on the age of the subscriber and the pension amount desired. The minimum monthly contribution is Rs. 42, while the maximum is Rs. 1,454.
- Payment Mode: The contribution will be directly auto-debited by the bank from the subscriber’s account on a monthly, quarterly, or half-yearly basis, as chosen by the subscriber.
- Exit and Withdrawal: The scheme allows for exit and withdrawal before the age of 60 years only under exceptional circumstances such as death or terminal illness.
- Implementation: The scheme is implemented by the Pension Fund Regulatory and Development Authority (PFRDA), which is a statutory body under the Ministry of Finance. The PFRDA is responsible for regulating and promoting pension schemes in India, including the National Pension System (NPS) and APY.
- Government Contribution: The government provides a co-contribution of 50% of the total contribution made by the subscriber every year, up to a maximum of Rs. 1,000 per annum, for a period of 5 years to eligible subscribers who joined the scheme before 31st December 2015.
- Achievement: As of April 27, 2023, over 5.25 crore individuals have subscribed to the scheme.
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Who implements PMJJBY?
Pradhan Mantri Jeevan Jyoti Bima Yojana (PMJJBY) is implemented by the Life Insurance Corporation of India (LIC) and other General Insurance companies who are willing to join the scheme and have tied up with banks for the same.