The central government can increase the scope of Pradhan Mantri Jeevan Jyoti Bima Yojana (PMJJBY) and Pradhan Mantri Suraksha Bima Yojana (PMSBY). For this, MGNREGA workers will also be brought under the ambit. This has been said in a report of SBI.
According to SBI Ecowrap, “Livelihood security is being provided through MGNREGA (Mahatma Gandhi National Rural Employment Guarantee Act). We propose that MGNREGA workers can be brought under PMJJBY and PMSBY compulsorily. For this only Rs 342 (Rs 330 and Rs 12) will have to be paid. The government can bear the burden of this.
The report states that only 10 per cent of the households/individuals complete 100 days of work. Inevitably, it will cost Rs 400 to 500 crore to join these insurance schemes. The government can bear the burden of this expenditure.
Insurance penetration was 2.71 per cent in the financial year 2000-01. This increased to 5.20 per cent in the financial year 2008-09 due to liberalization of the insurance sector. But in 2013-14 it came down to 3.30 per cent. However, with government support and universal insurance schemes (PMJJBY, PMSBY), the penetration of insurance increased to 4.20 per cent between 2014-15 and 2020-21.
What is the details of the insurance plan: Pradhan Mantri Jeevan Jyoti Bima Yojana is available for people in the age group of 18 to 50 years at a premium of Rs 330 per annum. The life insurance under this scheme is Rs 2 lakh. Pradhan Mantri Suraksha Bima Yojana is for people in the age group of 18 to 70 years. With a premium of Rs 12 per annum, the plan provides an insurance cover of Rs 2 lakh in case of accidental death and total disability and Rs 1 lakh in case of partial disability due to accident.
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Relief on GST of insurance policy: The report also said that at present, all insurance policies attract GST at the rate of 18 per cent. The reduction in this tax will bring down the premium and attract people to buy insurance policies.