Jan Suraksha Yojana

On May 9th, PM Modi is set to launch the Jan Suraksha Programme giving peopke accidental insurance, life insurance and pension programmes. Under The Pradhan Mantri Jan Suraksha Yojana, policy holders shall get a 2 lakh rupees accidental death/disability cover for an annual premium of simply Rs.12. Under the Pradhan Mantri Jeevan Jyoti Yojana, folks would get a life assurance cover of Rs.2 Lakhs for an annual premium of Rs.330. The third theme is Atal Pension Yojana. It is meant for general public, under which the government seeks to supply Social Security to the people. Based on their monthly contribution, beneficiaries would be able to draw a pension for Rs. 1000 – Rs. 5000 post retirement.

Moving from Jan Dhan to Jan Suraksha, the government has set for itself a very hard target than stage one. In a country with very low insurance penetration, the Modi government seeks to supply insurance cover to a large proportion of the adult population.

This stage is far tougher for multiple reasons. First, under Jan Dhan Yojana, the government should reach out to household level. Except for insurance the target has been set at the individual level. The government will have to convince households about the larger health risks faced by girls and therefore the importance of having female family members covered.

Second, the government has to convince selling insurance to people who are not familiar with the construct of insurance. Individuals would need to be told about the concept of protection against probable risks.

Third, the government will have to be compelled to make sure that the claim distribution is made convenient for the policy holders. If the holders do not get their claims paid, then it would deter them from renewing their policies.

Image Credit: Rangilo Gujarati / CC BY-SA 3.0

Image Reference: https://commons.wikimedia.org/wiki/File:Narendra_Modi_by_Rangilo_03.JPG