NIACL AO Study Material Government Insurance Schemes:

1. Employees State Insurance Scheme (ESIS)

 It is a measure of social insurance encompassed in Employees’ State Insurance Act
1948.
 It is designed to accomplish the task of protecting employees against the impact
incidences of sickness, disablement maternity, and death due to employment injury.
 To provide medical care to insured persons and their families.
 The ESI Scheme applies to factories and other establishment’s viz. Road Transport,
Hotels, Restaurants, Cinemas, Newspaper, Shops, and Educational/Medical Institutions
where 10 or more persons are employed.
 Employees of the factories and establishments drawing wages up to Rs.15,000/- a
month, are entitled to social security cover under the ESI Act 1948. ESI Corporation has
also decided to enhance wage ceiling for coverage of employees under the ESI Act
from Rs.15,000/- to Rs.21,000/-.
 The ESI Scheme is financed by contributions from employers and employees. The rate
of contribution by employer is 4.75% of the wages payable to employees. The
employees’ contribution is at the rate of 1.75% of the wages payable to an employee.
Employees earning less than Rs. 137/- a day as daily wages are exempted from payment
of their share of contribution.

2. Pradhan Mantri Jeevan Jyoti Bima Yojana (PMJJBY)

 It is a one-year Life Insurance scheme offering coverage for death of 2 Lakhs available at
a premium of 330 Rs per annum renewable from year-to-year. It i backed by the
Government and announced in the 2015 budget speech. It comes under the Ministry of
Finance.
 PMJJBY is available to people in the age group of 18 to 50 years having a savings bank
account and who give their consent to join and enable auto-debit.
 PMJJBY is administered through Life Insurance Corporation and other private life
insurance companies.

3. Pradhan Mantri Suraksha Bima Yojana (PMSBY)

 PMSBY is a one-year accidental death and disability cover, which can be renewed
annually. The risk cover available is Rs 2 lakhs for accidental death and permanent total
disability and Rs 1 lakh for permanent partial disability.
 It was again announced in 2015 Budget speech and come under Ministry of Finance.
 The Scheme is available to people in the age group 18 to 70 years with a bank account
who give their consent to join and enable auto-debit. The scheme can be renewed on
an annual basis.
 The premium of Rs. 12 per annum will be deducted from the account holder’s bank
account through ‘auto-debit’ facility in one installment. The scheme is offered by Public
Sector General Insurance Companies or any other General Insurance Company who are
willing to offer the product on similar terms.
 The scheme is launched to provide accident coverage to those who work under high
risk area and accident-prone areas such mechanics, factory labourers and heavy vehicle
drivers etc.

4. Pradhan Mantri Vaya Vandana Yojana (PMVVY)

 It is a Pension Scheme announced by the Government exclusively for the senior
citizensaged 60 years and above and is available from 4th May.
 Scheme provides an assured return of 8% p.a. payable monthly for 10 years. The
scheme is exempted from GST/Service tax.
 Minimum Entry Age – 60 years
 Maximum Entry Age – No limit
 Policy Term – 10 years
 Investment limit – Rs 15 lakhs per senior citizen
 Minimum Pension – Rs. 1,000/- per month.
 Maximum Pension – Rs. 10,000/- per month.
 Loan facility is available after completion of 3 policy years. The maximum loan that can
be granted shall be 75% of the Purchase Price.
 The scheme is being implemented by Life Insurance Corporation (LIC) of India.

5. Pradhan Mantri Fasal Bima Yojana (PMFBY)

 It was launched by the Government in 2016 to provide insurance coverage and financial
support to the farmers in the event of failure of any of any crop caused by natural
calamities, pests & diseases and to stabilize income of farmers.

Maximum
Insurance charges
Sr No. Season Crops payable by farmer

Food & Oilseeds crops (all cereals, millets,

1 Kharif & oilseeds, pulses) 2%

Food & Oilseeds crops (all cereals, millets,

2 Rabi & oilseeds, pulses) 1.5%

Annual Commercial / Annual Horticultural

3 Kharif and Rabi crops 5%
 Risks to be covered: Yield losses by –
1. Natural Fire and Lightning
2. Storm, Hailstorm, Cyclone, Typhoon, Tempest, Hurricane, Tornado etc
3. Flood, Inundation and Landslide
4. Drought, Dry spells
5. Pests/ Diseases etc.

6. Atal Pension Yojana (APY)

 This is Government scheme launched in 2015 and the main target of this scheme is
theunorganised sector. It comes under the ministry of Finance.
 The Atal Pension Yojana will provide a defined pension depending on the contribution
of the person and the period for which the scheme is subscribed. The APY will focus on
all citizens in the unorganised sector who join the National Pension System (NPS)
administered by the Pension Fund Regulatory and Development Authority (PFRDA).
 The minimum period of contribution by any subscriber under APY will be 20 years or
more. Minimum age of joining APY is 18 years and maximum age is 40 years.
The subscribers will receive the fixed minimum pension after the age of 60
years depending on their contributions. These would be
 1000 per month
 2000 per month
 3000 per month
 4000 per month
 5000 per month.
 Atal Pension Yojana (APY) is open to all bank account holders. The Central Government
would also co-contribute 50% of the total contribution or Rs. 1000 per annum,
whichever is lower, to each eligible subscriber account, for a period of 5 years, i.e., from
Financial Year 2015-16 to 2019-2020.