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| I. Organised Sector 1. Health, Life and Accident Insurance: Employees’ State Insurance Scheme (Act 1948) This is a multidimensional social security system tailored to provide socio-economic protection to workers and their dependents. Besides full medical care, admissible from day one of insurable employment, the insured are also entitled to a variety of cash benefits during childbirth, in times of sickness, temporary or permanent disability etc. resulting in loss of earning capacity etc. Dependents of insured persons who die in industrial accidents or because of employment injury or due to occupational hazards are entitled to a monthly pension called the dependents benefit. 2. Pension Scheme: The Employees’ Pension Scheme This scheme provides a pension for retiring employees when they reach 50 to 58 years of age, as well as pensions to their widows, children and nominees. Further information: http://esic.nic.in/ http://epfindia.nic.in/ II. Unorganised Sector 1. Health Insurance: Rashtriya Swasthya Bima Yojana (RSBY) The Ministry of Labour and Employment, Government of India, has launched a health insurance scheme for families living Below the Poverty Line (BPL). In accordance with the Hindi word for Health Insurance the scheme is called Rashtriya Swasthya Bima Yojana (RSBY). Eligible for this scheme are all families which are classified as BPL according to the list prepared by the State government. In order to make use of the scheme, BPL families have to present themselves at an enrollment station, where they receive a smartcard which costs them 30 INR (about 0.54 US $). This smartcard covers hospitalisation expenses up to 30,000 INR (about 540 US $) for a family of up to five people. Beneficiaries can choose any empanelled governmental or private hospital for treatment. Transportation costs will also be covered up to a maximum of 1,000 INR (about US $18) with 100 INR per visit (about US$ 1.80). The time frame for enrollment is one year. Identification is ensured through fingerprints, which are saved on the smartcard alongside other personal information and the medical history of the beneficiary. Thanks to this IT-based system, the scheme is totally paperless and cashless. 75% of the premium of RSBY is paid by the Central Government and 25% by the State government (In Jammu and Kashmir and the North Eastern States, 90% of the premium is provided by the State Government). Since the State Government selects the insurance companies through an open tendering process at the district level, premiums differ from district to district. The Ministry of Labour (MoLE), Government of India is responsible for the scheme. Further information: Official page of RSBY: http://www.rsby.gov.in 3. Pension Schemes: National Pension Scheme (NPS) The NPS-Lite Scheme is for low-income individuals who can make small savings during their productive life and build a corpus sufficient enough to buy annuity during their old-age. The Scheme is regulated by the Pension Fund Regulatory and Development Authority (PFRDA), which has been established by the Government of India, Ministry of Finance in October, 2003 to promote old-age income security. In order to attract employees from the unorganized sector, the Government of India has introduced the Swavalamban Scheme where an employee contributing amounts from INR 1,000 to INR 12,000 per annum for retirement savings is eligible to receive a matching contribution of INR 1,000 per annum from the Government. As of May 2012, the number of enrollments under NPS-Lite has increased to 1,100,000. An online facility provides a subscriber access to two personal accounts: Tier-I pension account and Tier-II savings account. In Tier-I pension account, the insurant contributes savings for retirement into this non-withdrawal account. Tier-II savings account is simply a voluntary savings facility. The insurant is free to withdraw her or his savings from this account whenever she or he wishes. NPS-Lite offers Indian citizens a low-cost option for planning their retirement. The Scheme generally offers 8.5%-9% returns per annum, depending on fund performance. At the end of the tenure (retirement), 60% of the corpus can be withdrawn from NPS-Lite and the remaining 40% will be invested in an annuity provided by insurance companies. A subscriber cannot withdraw the entire corpus at the end of the tenure. He has to buy an annuity which will be at least 40% of the total corpus. Pension will be given to the subscriber on a monthly basis based on annuity scheme chosen at the time of retirement. The withdrawal amount will be sent directly to the subscriber’s bank account. Further information: http://www.pfrda.org.in/writereaddata/linkimages/NEW%20WELCOME%20KIT396945283.pdf 4. Live and Accident Insurance: Aam Admi Bima Yojna/Janashree Bima Yojana (AABY/JBY) Janashree Bima Yojana (JBY) was launched on 10th August 2000. The Scheme has replaced Social Security Group Insurance Scheme (SSGIS) and Rural Group Life Insurance Scheme (RGLIS). It provides life insurance protection for people living below the poverty line or marginally above the poverty line in the age group of 18 to 60 years. An amount of INR 200 is paid as a premium per beneficiary. 50% of premium is paid by the State Government or (if the State does not pay) by the beneficiary and the remaining 50% by the Central Government. Regarding the benefits, in the case of natural death of the insured member, an amount of INR 30,000, death due to accident or permanent disability INR 75,000 and in the case of partial disability INR 37,500 will be provided. The children belonging to these insured members and studying in the class 9th, 10th, 11th, 12th will be given scholarship of INR 300 per quarter. It is being implemented by the Life Insurance Corporation of India (LIC) and is under the responsibility of the Ministry of Finance (MoF), Government of India. Further information: Ministry of Finance http://financialservices.gov.in/insurance/gssois/jby.asp |
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