PMJJBY

Pradhan Mantri Jeevan Jyoti Bima Yojana

Pradhan Mantri Jeevan Jyoti Bima is an Insurance Scheme introduced by Narendra Modi to increase the number of citizens insured in India. From a survey, it was deduced that only 20% of the demography is insured with a Life Insurance policy. With a country that has a huge population, 80% individuals being uninsured is a big lag in development.

What are the particulars Pradhan Mantri Jeevan Jyoti Bima Yojana?

Under PMJJBY, it is stated that the Indian citizens between the age 18-50 years must pay a premium of INR 330 per year which will be auto debited from the bank account of the beneficiary. This premium will be mature to an amount of INR 2,00,000 and will be paid to the heir or nominee in case of the death of the account holder. Thus PMJJY aims at every citizen having a life insurance. The scheme will be provided by all Life Insurance companies. PMJJBY can be availed by all saving account holders. Thus it will be mandatory for all earning citizens to open a bank account.

What is the eligibility criterion for PMJJBY?

  • An Indian citizen who is a savings bank account holder. (Age bracket: 18-50 years).
  • Must submit a written consent to the government that a premium of INR 330 will be auto debited from their account annually.

How To Apply For PMJJBY: Filling Online Application

The following are the steps to apply for PMJJBY:

  • Open the internet banking account of the bank you hold a savings account.
  • Go to the “Social Security Schemes” section. This section is available under account details.
  • Click on “Apply” and select scheme as “Pradhan Mantri Jeevan Jyoti Bima Yojana”.
  • Enter your account number and CIF number.
  • This application form is also available offline. Collect it from your bank or download it. Then you can fill the form online and submit with an authorized signature.

How is the premium divided?

The INR 330 premium auto debited monthly is divided as follows:

  • INR 289 is the annual amount for crediting the insurance.
  • INR 11 is payable to the bank by all account holders as Administrative Reimbursement.
  • INR 30 is the amount payable to various government and private corporate sectors for incurring the payments that enable the provision of these services.

What is the termination scheme for PMJJBY?

The termination policy is as follows:

  • The account will be terminated in the case of closure of the savings bank account of the beneficiary for reasons like bankruptcy or being unable to pay the premium due to insufficient balance remaining.
  • When the citizen reaches 55 years of age, the account is automatically terminated.( Note: Enrolment can’t be done in PMJJBY after 50 years of age).
  • In case the government comes to find out that an individual has multiple insurance schemes in the same account or under separate accounts, the PMJJBY for that individual will be terminated.
AABY

Aam Aadmi Bima Yojana (AABY) – Benefits and How to apply

Aam Aadmi Bima Yojana was launched on Gandhi Jayanti, 2007 by P.Chidambaram who was the Finance Minister back then. This was Social Security providing welfare scheme that targeted at benefiting the households of the lower sections of the society. The scheme covered the primary member of the family or the head of the family. The age of the family member should be between 15 years to 59 years, to be eligible for this scheme.

Who Is Administering The AABY Scheme?

The central head for the administration of the AABY Scheme is appointed by the Central Government. Thus according to feasibility, the administering body is either the Central Government, State Government or a local NGO who has taken up the charge for the welfare of any particular rural location.

What is Aam Aadmi Bima Yojana Premium Fund?

When individuals register for AABY, an account will be started under their name. For all the citizens who have applied for this scheme, a funding account will be set up. This account is known as the “Aam Aadmi Bima Yojana Premium Fund”. The account of every beneficiary will be credited with a premium of INR 200 annually. The payment of this amount will be incurred by the Central Government and the State Government equally.

What is the insurance coverage under AABY?

If an individual is registered for AABY Premium Fund account, the government will provide the insurance coverage as follows:

  • On death of the insured individual: INR 30,000
  • On untimely death due to an accident or complete disability: INR 75,000
  • On partial disability due to an accident: INR 37,500

What is the eligibility criteria for AABY?

The eligibility for Aam Aadmi Bima Yojana is as follows:

  • The individual applying for AABY should be a member of a household below the poverty line or marginal with the poverty line as identified by the government.
  • The individual must be from a family where no other member has an existing AABY account under their name. This scheme stands only for one earning member of the family or the head of the family.
  • The individual must be in the age bracket of 15-59 years.

How to apply for AABY?

The application form for AABY is available both online and offline. Thus interested citizens must apply for it by filling in the required information. This application form has to be submitted to the respective banks and municipality with supporting documents for further processing.

What the documents required to apply for this scheme?

Application for this scheme would mean submitted proof of age to the government. Thus the following documents:

  • Ration Card (Proof of Below The Poverty Line)
  • Aadhaar Card (account linked to Aadhar)
  • Voter Card (Proof for 18 years of age and above)
  • Birth Certificate (Age proof)

What are the other benefits of AABY?

Under the AABY Scheme, an additional benefit has been provided by the government to all premium fund account holders. This benefit states that an educational scholarship can be opted for by children of the individual registered for AABY. The scholarship is available for a maximum of 2 children who are studying in grades between 9 to 12. As scholarship, an amount of INR 300 is given to them on a quarterly basis.

LPG subsidy scheme

LPG Subsidy Scheme: Pros, Cons, Success Rate and Recent News

LPG Subsidy Scheme, popularly known as PAHAL, was launched by Narendra Modi Government, where the citizens living below poverty line gets a new LPG connection with the subsidized amount of the rich/middle-class people (who sacrificed their subsidy voluntarily).

This scheme was primarily launched to facilitate rural development. In a country having 125 crores population, there are many people who do not need any subsidy in LPG gas but were paying the same amount no matter he needed the subsidy or not. So the government came up with an idea, where people could voluntarily give up their subsidy and the government used the same amount to give a new connection to the poor as they can’t afford it.

LPG subsidy scheme

What is The LPG Subsidy Scheme?

The LPG Subsidy scheme introduced as PAHAL by Narendra Modi was initially launched in 54 districts when it started in 2014. By 2015, the scheme covered all the 622 districts remaining. The PAHAL or Pratyaksh Hanstantrit Labh Scheme states that there will be a direct benefit transfer of LPG subsidy that is given for domestic use. Initially, when the scheme started, the LPG subsidy was directly linked to the bank account via the Aadhaar Card under DBTL (Direct Benefit Transfer LPG). But the individuals who did not have an Aadhaar ID suffered. Thus the scheme was re-launched for the benefit of everyone, where CTC (Cash Transfer Compliant) was possible under PAHAL even if they do not have any Aadhaar card. But the CTC was only a two-month grace period given. Thereafter, Aadhaar is mandatory for LPG subsidies after 30th November.

Since LPG is a government provided service, there should be no money charged for transportation and direct delivery of LPG subsidies. Only the cost of the LPG is to be directed to the government. Thus, the mission of the PAHAL Scheme is providing cashless LPG Subsidies to households to maintain a transparency in the market.

What are DBTL and CTC?

DBTL is Direct Benefit Transfer LPG where the amount paid for LPG subsidies will be directly deducted from the bank account linked to the Aadhaar Card.

CTC is Cash Transfer Compliant where the bank account can be directly linked without an Aadhaar card in order to pay for LPG subsidies.

Update: This scheme is not available anymore.

What is the Success Rate Of LPG Subsidy Scheme?

  • PAHAL has reached a major milestone with generating saving up to 21,000 crores by 2016. More savings are expected by the end of this fiscal year.
  • In the face of demonetization, the dependency on PAHAL has increased as it promotes cashless transaction. Thus an increase in the number of LPG subsidies has been seen. From 13 crore in 2014 when it started, the number of domestic subsidies have become 17.4 crores.
  • PMUY was introduced for the households below the poverty line. Under the PMUY or Pradhan Mantri Ujjwala Yojana, LPG connection is given to all the households below the poverty line at no cost.

What Are The CONS of LPG Subsidy Scheme?

PAHAL was introduced in good faith to start cashless provision of LPG subsidies, but it has gone awry in some places. India is divided into two parts: the under-developed and the highly developing. For the people in urban areas where development is fast paced, PAHAL through DBTL and CTC is possible. But when looking at the broader picture, the overall price indexing system has to be considered. The poorer sections of the society are falling in a disadvantageous position in this respect due to the lack of development.

The successful fulfillment of PAHAL scheme depends on factors like proper banking system and remote network connectivity. But neither exists in rural India. Thus over 10 million have given up LPG subsidies after PAHAL.

LPG Subsidy: Union Budget 2017

The Union Budget 2017 claimed that several schemes regarding the use of non-renewable resources was to be financially earmarked. A total of 25,000 crore INR is to be set aside for that purpose. The LPG Subsidy Scheme which revolutionized rural India is to gain a massive capital under this. Thus out of 25,000 crore INR an amount of 16,076 crore INR is to be credited towards LPG Subsidy. This is a huge step forward by the government for the betterment of those who cannot avail the services of cooking gas.

LPG Subsidy Recent News

  • In an attempt to eradicate all black money and dealings in India, a new scheme related to PAHAL has been introduced. It states that all domestic households are entitled to a subscription of 12 cylinders of 14.2kg each at government stated rates. If more cylinders are in demand by the higher income group (greater than 10 lakh per annum), they will not get a further subscription.
  • 12% of customers in Indore who had LPG subsidies have been denied subscription as they have not linked their Adhaar number to their accounts.
  • The PMUY (Pradhan Mantri Ujjwala Yojana), which aimed at providing LPG as a free benefit to the households below poverty line, has met with a huge success. Narendra Modi has successfully monitored the delivery of LPG connections in 15 million households over a period of 8 months.