Suraksha Bandhan’ drive would seek to encourage people to gift ‘social security’ plans

Raksha Bandhan, to be celebrated on August 29, is a festival where brothers traditionally give gifts to their sisters and vow to protect them.

Similarly, the ‘Suraksha Bandhan’ drive would seek to encourage people to gift ‘social security’ plans to their loved ones. The new drive is aimed at taking forward the government’s objective of creating a universal social security system in the country, targeted especially at the poor and the under-privileged, the Finance Ministry said.

The drive will be supported through the Jeevan Suraksha Gift cheques, which will be available for purchase for Rs 351 in bank branches by persons wishing to gift them to facilitate one year payment of premium for Pradhan Mantri Jeevan Jyoti Bima Yojana (PMJJBY) and Pradhan Mantri Suraksha Bima Yojana (PMSBY) by the recipient.

The recipient of the gift cheque would deposit the instrument in his or her bank account for a realisable value of Rs 342 (Rs 12 + Rs 330) to cover one-year subscription to PMJJBY and PMSBY.

The balance of Rs 9 from the purchase price of Rs 351 would be retained by the issuing bank as a service charge.

Banks will also provide a facility to account holders under the Suraksha Deposit Scheme and the Jeevan Suraksha Deposit Scheme aimed at enabling them to deposit Rs 201 or Rs 5,001, respectively in their accounts either on their own initiative by cash, cheque or based on cash or cheques received as gifts on Raksha Bandhan for subscription to PMSBY or to both PMSBY and PMJJBY, respectively.

The Rs 201 deposit envisaged under Suraksha Deposit Scheme would be used by the individual through his or her bank account to reserve Rs 24 for paying two annual payments of Rs 12 each for PMSBY, at the appropriate time, and the remaining Rs 177 would be in a Fixed Deposit (FD) for 5 to 10 years for payment of future PMSBY subscriptions from the interest accrued every year, it said.

“Similarly, the Rs 5,001 deposit under Jeevan Suraksha Deposit Scheme would be used to reserve Rs 684 for paying two annual payments of Rs 342 (Rs 12 + Rs 330) each for subscription to PMSBY and PMJJBY, at the appropriate time, and the remaining Rs 4,317 would be kept in FD for 5 to 10 years for payment of future PMSBY and PMJJBY subscriptions from the interest accrued every year,” it said.

Besides, the last date for enrolling under the PMSBY and PMJJBY schemes has been extended till 30th September 2015, and persons enrolling within this period would not be required to submit a certificate of good health for PMJJBY.
The social security initiative also includes the Atal Pension Yojana (APY), launched along with the above two insurance schemes, which addresses the issue of old age income security by facilitating regular contributions during the working life of the subscriber for a guaranteed pension at the age of 60, with certain Government contribution for eligible subscribers who enroll by 31st Dec 2015.

In order to create awareness, the statement said, participating banks supported by the insurer will work towards local outreach, and enrolment facilitation during this drive.

All eligible citizens are requested to contact their bank branches for enrolment, it said.

“Public service organisations supported by peoples representatives, field functionaries of government departments or ministries working with the unorganised or informal sector and banks or insurance companies are expected to participate in these efforts through outreach drives, camps etc. in large numbers during this period,” it said.

PMSBY offers a renewable one-year accidental death-cum- disability cover of Rs 2 lakh for partial/permanent disability to all savings bank account holders in the age group of 18-70 years for a premium of Rs 12 per annum per subscriber. The scheme is managed by general insurance firms.

PMJJBY, on the other hand, offers a renewable one year life cover of Rs 2 lakh to all savings bank account holders in the age group of 18-50 years, covering death due to any reason, for a premium of Rs 330 per annum per subscriber.

source economictimes