Buying a insurance in 2023? Here are 3 government sponsored schemes in India

Insurance is a risk management tool & an important part of any financial plan. Insurance is necessary because it provides financial protection against unexpected events or losses. 

There are broadly two types of insurance that relates to human life. Life insurance that covers the risk of death & health insurance that covers the risk of hospitalisation. Here we are going to discuss the insurance cover policies provided by the Government of India to its citizens.

Pradhan Mantri Jan Arogya Yojana (PMJAY) - It is a government-funded health insurance scheme in India, launched in 2018. The scheme aims to provide financial protection to economically weaker sections of society by offering them cashless access to secondary and tertiary healthcare services. Under this scheme, eligible beneficiaries are provided with an insurance cover of up to Rs. 5 lakh per family per year for hospitalisation expenses.

Eligibility:

- The scheme is targeted at economically weaker sections of society, including families living below the poverty line (BPL), as well as those who are not covered under any existing health insurance scheme.

- The scheme is open to all residents of India, regardless of their age, gender, or occupation.

Benefits:

- Under PMJAY, eligible beneficiaries are provided with an insurance cover of up to Rs. 5 lakh per family per year for hospitalisation expenses.

- Benefits of the scheme include cashless access to hospitalisation at empanelled hospitals, as well as pre- and post-hospitalization expenses.

- The scheme covers a wide range of treatments, including surgery, day care procedures, diagnostic tests, and more.

Enrolment:

- Beneficiaries can enrol in the scheme through the PMJAY website or by visiting a Common Service Center (CSC).

- The enrolment process involves providing basic personal and family details, as well as proof of identity and address.

For more details on PMJAY can be found on National Health Authority website.

Pradhan Mantri Jeevan Jyoti Bima Yojana (PMJJBY): It is a government-funded life insurance scheme in India, launched in 2015. The scheme aims to provide financial protection to individuals in the event of their untimely death. Under PMJJBY, eligible individuals are provided with a life insurance cover of Rs. 2 lakh in the event of their death due to any reason. The scheme is implemented through Life Insurance Corporation of India (LIC) and other life insurance companies and is available to eligible individuals across India.

Eligibility:

- The scheme is open to all savings bank account holders aged between 18 and 50 years.

Benefits:

- Under PMJJBY, eligible individuals are provided with a life insurance cover of Rs. 2 lakh in the event of their death due to any reason.

- The scheme provides for automatic enrolment of eligible individuals, who will be covered for the insurance until the age of 55.

- Premium for the scheme is Rs. 436 per annum which is very low and can be debited automatically from the account holder's savings account.

Enrolment:

- Individuals can enrol in the scheme through their bank by filling out a simple enrolment form.

- The enrolment process involves providing basic personal details and giving consent for the premium to be debited from their savings account.

- PMJJBY is a scheme that is expected to benefit a large number of people in the country, particularly those who may not have access to other life insurance products. The scheme is a step towards providing financial protection to individuals and their families in the event of an untimely death.

For more details on PMJJBY can be found on Jansuraksha website.

Pradhan Mantri Suraksha Bima Yojana (PMSBY): It is a government-funded accidental death and disability insurance scheme in India, launched in 2015. The scheme aims to provide financial protection to individuals in the event of accidental death or disability. 

Under PMSBY, eligible individuals are provided with an insurance cover of Rs. 2 lakh in the event of accidental death and Rs. 1 lakh in the event of permanent disability. The scheme is implemented through various public sector and private sector general insurance companies and is available to eligible individuals across India.

Eligibility:

- The scheme is open to all savings bank account holders aged between 18 and 70 years.

- Individuals who wish to enrol in the scheme must have a savings bank account with a bank that is participating in the scheme.

Benefits:

- Under PMSBY, eligible individuals are provided with an insurance cover of Rs. 2 lakh in the event of accidental death and Rs. 1 lakh in the event of permanent disability.

- The scheme provides for automatic enrolment of eligible individuals, who will be covered for the insurance until the age of 70.

- Premium for the scheme is Rs. 20 per annum which is very low and can be debited automatically from the account holder's savings account.

Enrolment:

- Individuals can enrol in the scheme through their bank by filling out a simple enrolment form.

- The enrolment process involves providing basic personal details and giving consent for the premium to be debited from their savings account.

For more details on PMSBY can be found on Jansuraksha website.

TIP: It is important to enrol for these schemes even when you have personal insurance. The premiums are very low & cover is guaranteed by the Government.
 

CA Rohit J. Gyanchandani is Managing Director, Nandi Nivesh Private Limited, A Pune based Wealth Management Company.