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Prime Minister Narendra Modi to launch 3 social security schemes linked to insurance and pension sector

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By NewsGram Staff Writer

The Prime Minister Narendra Modi will launch three ambitious social security schemes pertaining to the insurance and pension sector on 9th May 2015 at Kolkata.

The two insurance schemes to be launched, namely Pradhan Mantri Suraksha Bima Yojana (PMSBY) and Pradhan Mantri Jeevan Jyoti Bima Yojana (PMJJBY) would provide insurance cover, whereas the pension scheme, Atal Pension Yojana (APY), would address old age income security needs.

PMSBY will offer a renewable one year accidental death cum disability cover of Rs 2  lakh (Rs 1 lakh for partial permanent disability) to all savings bank account holders in the age group of 18 to 70 years for a premium of Rs. 12/- per annum per subscriber. The scheme would be administered through Public Sector General Insurance Companies (PSGICs) or other General Insurance companies.

PMJJBY on the other hand will offer a renewable one year life cover of Rupees 2 lakh to all savings bank account holders in the age group of 18 to 50 years, covering death due to any reason, for a premium of Rs.330/- per annum per subscriber. The scheme would be offered  through LIC or other Life Insurance companies willing to offer the product on similar terms.

APY, the third scheme to be launched, will focus on the unorganised sector and provide subscribers a fixed minimum pension of Rs. 1000, 2000, 3000, 4000 or Rs. 5000 per month starting at the age of 60 years, depending on the contribution option exercised on entering at an age between 18 and 40 years. Thus, the period of contribution by any subscriber under APY would be 20 years or more. The fixed minimum pension would be guaranteed by the government.

While the scheme is open to back account bank account holders in the prescribed age group, the Central Government would also co-contribute 50% of the total contribution or Rs. 1000 per annum, whichever is lower, for a period of 5 years for those joining the scheme before 31st December, 2015 and are not members of any statutory social security scheme and are not income tax payers.

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Insurance in 10 Years Time: What Will the Industry Look Like?

In a decade, there will likely be more payment plans and options. We’ll see more companies offering no or low down payment options and more manageable premiums

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The world of insurance is forever changing. With more payment options and more ways to gain insurance, companies are having to change their tactics and opportunities for individuals. Cars are more affordable and other types of insurance are becoming more wanted than ever before. People want more options, such as auto insurance with no down payment.

What could the insurance industry look like in 10 years time? Will there still be cheap full coverage auto insurance with no down payment? Here’s a look at what the state of the insurance industry is looking like.

More Management Online

Let’s start with technology. Millennials may get a bad rep for some areas of their lives, but they are the growing generation and the one that is shaping all this change. One area they are powerful in is the focus on technology, accepting and building it forward instead of looking at the past.

More people want to manage their financial obligations online. They want to be able to order items online, managing their banking, and even control their stocks.

Gone are the days were everyone will walk into a broker to manage their auto insurance policy. They’ll look at price comparison sites to find the cheapest option and will do as much as possible online. Companies will need to keep up with that. There’s more chance that someone will find a $20 down payment car insurance option now than ever before because of Google searches.

So, there will be more ways to manage insurance and rates online. More companies will build apps for individuals to use. Instead of having to call for a rate, more companies will offer their rates directly online. We’re already seeing this with the price comparison sites and that’s only going to grow.

The Ability to Rely on Up to the Minute Information

As more of our personal details end up digitized, there will be more information available to an insurer. This can help with gaining auto insurance with no down payment. It can also help improve the chances of finding cheaper car insurance.

Companies will be able to access more relevant information. Right now, information is accessed yearly. If you stick with the same insurer, the company won’t ask for a lot of new details. You’re asked to check the current information is correct and given your latest policy quote – usually an increase.

With direct information, you can offer all the latest details about accidents, trips, and other information. Insurers could offer month-by-month policies to help manage finances, and keep the insurance inline with your current needs. This can also work in the insurer’s favor. Should you have an accident, your policy costs will immediately increase.

More Smart Technology in the Car

Something you may have noticed is the rise in popularity of the black box. This will continue to gain traction over the next decade and could be useful for $20 down payment car insurance.

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Insurance in 10 Years Time: What Will the Industry Look Like? Find it out here. pixabay

The black box is something that tracks speed, breaking abilities, and other driving habits. All information will be sent directly to the insurance company. The insurer can then use this information during the coverage year rather than getting information on a yearly basis.

There are positives for both driver and insurer with this technology. For the driver, there’s the chance of proving a good driving recording, which is extremely beneficial for new and young drivers. Those who are considered high risk can prove earlier that they’re a low risk; that their driving skills are good enough to warrant a lower premium.

Meanwhile, insurers can also keep track of driving habits. They’ll be able to check up on the amount of miles driven and whether there are some bad habits that could put someone in the high risk category. Instead of one policy for the year, it’s possible to get new rates each month or every quarter.

This technology would also be good should a car get stolen. The insurer will be able to give the last known details to the police or even offer tracking details to make it much easier to find the vehicle. And let’s not forget a parent’s worst nightmare of a child leaving without telling them where they are going!

Management for Driverless Cars

While not a common reality right now, the interest in driverless cars is growing. Technology is continually tested, and there is a chance that it will become a major player in the auto industry by 2028.

In 10 years time, the auto insurance industry would need to completely change with this in mind. No longer is this about the driver, but about the computer. We could see insurance costs initially rise while the technology is put to the test, but once proven successful, the insurance costs will need to decrease. After all, there’s no longer as big of a risk.

Will insurance even be a mandatory thing by law when the driverless cars come in? Could we see more people relying on third-party insurance only, because there’s a lower risk of them crashing? This is something that will need to be addressed over the course of the next 10 years.

Also Read- Smoking, High BP Increases Risk of Heart Attack Recurrence

More Payment Plan Options

The method of paying for insurance has changed over the years. Now we’re getting more people who want to pay monthly. In fact, there are more people who have to pay monthly. It’s the only way they can afford to budget for their car insurance.

In a decade, there will likely be more payment plans and options. We’ll see more companies offering no or low down payment options and more manageable premiums.

Where do you think the state of the insurance industry will be in a decade? We’ll likely see more companies turning to the technology available and things will need to change as more driverless cars are added. Auto insurance with no down payment could certainly become more viable and popular in 10 years time.