Lok Sabha Question No. 899 (UNSTARRED), answered on 2018-12-14
Subject: Socially Oriented Insurance Schemes
Ministry: FINANCE
Asked by: MALLIKARJUN  KHARGE

## GOVERNMENT OF INDIA MINISTRY OF FINANCE DEPARTMENT OF FINANCIAL SERVICES

## LOK SABHA UNSTARRED QUESTION NO. 899

TO BE ANSWERED ON FRIDAY, DECEMBER 14, 2018/AGRAHAYANA 23, 1940 (SAKA)

Socially Oriented Schemes

## 899.  SHRI MALLIKARJUN KHARGE:

Will the Minister of FINANCE be pleased to state:

- (a) the details of various socially oriented insurance schemes which are currently being operated or partially sponsored by the Central Government, targeted at vulnerable sections of the society;
- (b) the details of methodology used by the Government for determining the beneficiaries who can be covered under these schemes;
- (c)  the  details  of  contribution  of  the  Government  towards  the  premium  to  be  paid  to  insurance companies under each of these schemes, scheme-wise;
- (d) the details regarding amount of premium paid, claims raised, ratio of premium paid and claims raised and number of beneficiaries covered under each of these schemes from the period from which these schemes were introduced to till date; and
- (e)  whether  the  Government  has  taken  any  steps  to  decrease  the  widening  gap  between  the amount spent on payment of premium and the amount utilized towards payment of claims and if so, the details thereof?

## ANSWER

## THE MINISTER OF STATE IN THE MINISTRY OF FINANCE (SHRI SHIV PRATAP SHUKLA)

- (a) to (c): The details of the socially oriented insurance schemes targeted at vulnerable sections of the society are as follows:

Pradhan Mantri Jeevan Jyoti Bima Yojana (PMJJBY) and Pradhan Mantri Suraksha Bima Yojana (PMSBY) were launched on 9th May, 2015. The cover period under these schemes is 1st June  of  each  year  to  31st  May  of  subsequent  year.  These  schemes  are  offered/  administered through both public and private sector insurance companies, in tie up with scheduled commercial banks, regional rural banks and cooperative banks.

PMJJBY offers a renewable one year term life cover of Rupees Two Lakh to all subscribing 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,  to  be  auto  debited  from  subscriber's  bank account. Similarly, PMSBY offers a renewable one year accidental death cum disability cover to all subscribing bank account holders in the age group of 18 to 70 years for a premium of Rs.12/per  annum  per  subscriber  to  be  auto  debited  from  subscriber's  bank  account.  The  scheme provides a cover of Rs. Two Lakh for accidental death or total permanent disability and Rs One Lakh in case of permanent partial disability.

The above schemes are on self-subscription basis and involves no Government contribution.

Government  also  launched  the  scheme  namely 'Pradhan  Mantri  Vaya  Vandana  Yojana' (PMVVY) to   protect elderly persons aged 60 years   and above against a future fall in their interest income due to the uncertain market conditions, as also to provide social security during old age. The scheme provides an assured return of 8% per annum for 10 years. The differential return i.e. the  difference  between  return  generated  by  LIC  and  the  assured  return  of  8%  per  annum  is borne by Government of India as subsidy on annual basis.   Mode of pension payment is monthly, quarterly,  half-yearly  and  annually  based  on  option  exercised  by  the  subscriber.  The  scheme was open initially for subscription for a period of one year i.e. from 4th   May, 2017 to 3rd May, 2018. In pursuance to Budget Announcement 2018-19, the scheme has been extended up to

31st   March, 2020.The minimum purchase price under the scheme is Rs.1.5 lakh per family for a minimum  pension  of  Rs.  1,000/-  per  month  and  the  maximum  purchase  price  has  been enhanced from Rs.7.5 lakh per family to Rs 15 lakh per senior citizen for a maximum pension of

Rs.10,000/- per month. Ministry of Agriculture  implements Pradhan  Mantri  Fasal  Bima  Yojana  (PMFBY) and Restructured  Weather  Based  Crop  Insurance  Scheme  (RWBCIS) with  a  view  to  provide comprehensive crop insurance cover against non-preventable natural risks at an affordable rate to farmers. The scheme is compulsory for loanee farmers and voluntary for non-loanee farmers for notified crops in notified areas. Uniform maximum premium of only 2%, 1.5% and 5% of the sum insured to be paid by farmers for all Kharif crops, Rabi crops and commercial/horticultural crops respectively. The difference between premium and the rate of insurance charges payable by farmers is provided as subsidy and shared equally by the Centre and State. The  Government  of  India  also  implements  Ayushman  Bharat  namely; Pradhan  Mantri  Jan Arogya Yojana (PMJAY) a centrally sponsored scheme. PMJAY provides health coverageuptoRs. 5 lakh per family, per year for secondary and tertiary hospitalization to over 10.74 crore poor and vulnerable families (approximately 50 crore beneficiaries). PMJAY is an entitlement  based  scheme.  This  scheme  covers  poor  and  vulnerable  families  based  on deprivation  and  occupational  criteria  as  per  SECC  data.  PMJAY  provides  cashless  and paperless access to services for the beneficiary at the point of service in any (both public and private)  empaneled  hospitals  across  India.  There  is  no  restriction  on  family  size,  ensuring  all members of designated families specifically  girl  child  and  senior  citizens  get  coverage.  About 1393 packages are available for the beneficiaries  under  PMJAY.  The  ratio  of  premium  under PMJAY is 60:40 between Centre and State except North Eastern States and 3 Himalayan States where  the  ratio  is  90:10  with  an  upper  limit  for  Centre.  In  the  case  of  Union  Territories,  the Central contribution of premium is 100% for UTs without legislature, while it is 60:40 for those with legislature. (d) and (e ): The details are at Annexure.

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## ANNEXURE REFFRED TO IN PART (d) and (e) of LOK SABHA UNSTARRED QUESTION NO. 899 for ANSWER ON DECEMBER 14, 2018.

- (i) Pradhan Mantri Jeevan Jyoti Bima Yojana (PMJJBY) and the Pradhan Mantri Suraksha Bima Yojana (PMSBY):
- (ii) Pradhan Mantri Vaya Vandana Yojana'(PMVVY).A total number of 3,31,311 subscribers consisting of a corpus of Rs.   22,812.75 crore   are being benefited under the scheme as on   30.11.2018.
- (iii) Pradhan Mantri Fasal Bima Yojana (PMFBY) and Restructured Weather Crop Insurance Scheme (RWBCIS).
- (iv) Pradhan Mantri Jan Arogya Yojana (PMJAY) has been launched on 23.09.2018. This scheme  is  implemented  by  the  respective  State/UT  Governments  who  maintain  the details regarding premium paid, claims raised, ratio of premium paid etc.

| As on 31.10.2018                                                           | PMSBY   | PMJJBY   |
|----------------------------------------------------------------------------|---------|----------|
| Details of Amount of Premium Paid (in Rs. Crores) *                        | 428.03  | 3274.79  |
| Details of Amount of Claims raised (in Rs. Crores )**                      | 449.82  | 2422.54  |
| Ratio of Premium Paid and Claims raised ( including outstanding )          | 105.09% | 73.98%   |
| Number of Beneficiaries covered from Date of introduction ( In Crores )*** | 14.27   | 5.57     |

| Season    |   Total enrollment of farmers (tentatively) in Crores) | Estimated claims (Rs. in Crores)   | Claims Paid (Rs. in Crores)   |
|-----------|--------------------------------------------------------|------------------------------------|-------------------------------|
| 2016-2017 |                                                   5.73 | 16,371                             | 16,087                        |
| 2017-2018 |                                                   5.18 | 17,330                             | 16,667                        |

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