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What are Government Initiatives to Increase Insurance Coverage? - UPSC Economy
What is What are Government Initiatives to Increase Insurance Coverage? in UPSC Economy?
What are Government Initiatives to Increase Insurance Coverage? is a key topic under Economy for UPSC Civil Services Examination. Key points include: Government schemes like PMJJBY, PMSBY, AB-PMJAY, and PMFBY are crucial for increasing insurance coverage in India.. PMJJBY offers life insurance (₹2 Lakh) for 18-50 years at ₹436/year.. PMSBY provides accidental death/disability cover (₹2 Lakh) for 18-70 years at ₹20/year.. Understanding this topic is essential for both UPSC Prelims and Mains preparation.
Why is What are Government Initiatives to Increase Insurance Coverage? important for UPSC exam?
What are Government Initiatives to Increase Insurance Coverage? is a Medium-level topic in UPSC Economy. It is tested in both Prelims (factual MCQs) and Mains (analytical answer writing). Previous year UPSC questions have frequently covered aspects of What are Government Initiatives to Increase Insurance Coverage?, making it essential for comprehensive IAS preparation.
How to prepare What are Government Initiatives to Increase Insurance Coverage? for UPSC?
To prepare What are Government Initiatives to Increase Insurance Coverage? for UPSC: (1) Study the comprehensive notes covering all key concepts on Vaidra. (2) Practice previous year questions on this topic. (3) Connect it with current affairs using daily updates. (4) Revise using key takeaways and mind maps available for Economy. (5) Write practice answers linking What are Government Initiatives to Increase Insurance Coverage? to related GS Paper topics.
Key takeaways of What are Government Initiatives to Increase Insurance Coverage? for UPSC
- Government schemes like PMJJBY, PMSBY, AB-PMJAY, and PMFBY are crucial for increasing insurance coverage in India.
- PMJJBY offers life insurance (₹2 Lakh) for 18-50 years at ₹436/year.
- PMSBY provides accidental death/disability cover (₹2 Lakh) for 18-70 years at ₹20/year.
- AB-PMJAY is the world's largest health scheme, offering ₹5 Lakh/family/year for secondary/tertiary care to vulnerable families.
- PMFBY provides crop insurance to farmers against natural calamities, with subsidized premiums.
- These initiatives enhance financial inclusion, reduce poverty, and strengthen social security for diverse segments of the population.
What are Government Initiatives to Increase Insurance Coverage?
Medium⏱️ 8 min read
economy
📖 Introduction
Understanding Government Initiatives for Insurance Coverage
The Government of India has launched several schemes to enhance insurance penetration and provide a social safety net to its citizens. These initiatives aim to protect individuals and families against various financial risks, including death, disability, health emergencies, and crop losses.
Increasing insurance coverage is crucial for fostering financial stability, reducing poverty, and promoting inclusive growth across different segments of society.
Pradhan Mantri Jeevan Jyoti Bima Yojana (PMJJBY)
The Pradhan Mantri Jeevan Jyoti Bima Yojana (PMJJBY) is a government-backed life insurance scheme. It offers a renewable one-year term life cover to eligible individuals.
Launch Date: May 9, 2015
Objective: To provide life insurance coverage to the economically vulnerable population.
Target Group: Individuals aged 18 to 50 years having a savings bank account.
The scheme provides a substantial sum assured upon the policyholder's death due to any cause. This offers crucial financial security to the family of the deceased.
- Coverage: ₹2 Lakh upon the death of the insured.
- Premium: ₹436 per annum, auto-debited from the subscriber's bank account.
- Administration: Offered by Life Insurance Corporation (LIC) and other private life insurance companies through participating banks.
Pradhan Mantri Suraksha Bima Yojana (PMSBY)
The Pradhan Mantri Suraksha Bima Yojana (PMSBY) is an affordable accident insurance scheme. It provides cover for accidental death and disability.
Launch Date: May 9, 2015
Objective: To provide accidental death and disability cover at a very low premium.
Target Group: Individuals aged 18 to 70 years having a savings bank account.
This scheme is designed to be highly accessible, ensuring that a wide segment of the population can afford basic accident protection.
- Coverage: ₹2 Lakh for accidental death or total permanent disability.
- Coverage: ₹1 Lakh for partial permanent disability.
- Premium: ₹20 per annum, auto-debited from the subscriber's bank account.
- Administration: Offered by General Insurance Companies through participating banks.
Ayushman Bharat – Pradhan Mantri Jan Arogya Yojana (AB-PMJAY)
Ayushman Bharat – Pradhan Mantri Jan Arogya Yojana (AB-PMJAY) is the world's largest government-funded health insurance scheme. It aims to provide universal health coverage to the poor and vulnerable.
Launch Date: September 23, 2018
Objective: To provide cashless and paperless access to health services for secondary and tertiary care hospitalization.
Target Group: Over 10.74 crore poor and vulnerable families (approximately 50 crore beneficiaries) based on the Socio-Economic Caste Census (SECC) 2011 data.
The scheme significantly reduces out-of-pocket expenditure on healthcare for eligible families.
- Coverage: ₹5 Lakh per family per year for secondary and tertiary hospitalization.
- Benefits: Covers pre-hospitalization expenses, diagnostics, medicines, and post-hospitalization care.
- Key Feature: Provides portability, allowing beneficiaries to avail services across empaneled hospitals nationwide.
Pradhan Mantri Fasal Bima Yojana (PMFBY)
The Pradhan Mantri Fasal Bima Yojana (PMFBY) is a comprehensive crop insurance scheme. It provides financial support to farmers suffering crop loss/damage arising out of unforeseen events.
Launch Date: January 13, 2016
Objective: To provide comprehensive insurance cover against the failure of notified crops, thereby stabilizing farmers' income.
Target Group: All farmers growing notified crops in notified areas.
PMFBY aims to reduce the financial burden on farmers due to crop failures caused by natural calamities.
- Risks Covered: Non-preventable natural risks like drought, floods, pests, diseases, hailstorms, landslides, etc.
- Farmer's Premium: 1.5% for Rabi crops, 2% for Kharif crops, and 5% for commercial/horticultural crops. The remaining premium is borne by the government.
- Key Feature: Use of technology like drones and satellite imagery for faster assessment of crop losses.
For UPSC, understand the specific objectives, target beneficiaries, and key features of each scheme. Questions often test the differences between similar schemes (e.g., PMJJBY vs. PMSBY) or the impact of schemes like AB-PMJAY on social welfare.
💡 Key Takeaways
- •Government schemes like PMJJBY, PMSBY, AB-PMJAY, and PMFBY are crucial for increasing insurance coverage in India.
- •PMJJBY offers life insurance (₹2 Lakh) for 18-50 years at ₹436/year.
- •PMSBY provides accidental death/disability cover (₹2 Lakh) for 18-70 years at ₹20/year.
- •AB-PMJAY is the world's largest health scheme, offering ₹5 Lakh/family/year for secondary/tertiary care to vulnerable families.
- •PMFBY provides crop insurance to farmers against natural calamities, with subsidized premiums.
- •These initiatives enhance financial inclusion, reduce poverty, and strengthen social security for diverse segments of the population.
🧠 Memory Techniques
98% Verified Content
📚 Reference Sources
•National Health Authority (NHA), Government of India (for AB-PMJAY)
•Ministry of Agriculture & Farmers Welfare, Government of India (for PMFBY)
•Press Information Bureau (PIB), Government of India releases