Expressing his government's resolve for "empowering the poor instead of aiding them", Prime Minister Narendra Modi on Saturday launched three ambitious social security schemes, relating to the insurance and pension sector and intended at widening the process of financial inclusion.
On his first visit to West Bengal after taking over as prime minister, Modi kickstarted the "Pradhan Mantri Suraksha Bima Yojana" (accident insurance), "Pradhan Mantri Jeevan Jyoti Yojana" (life insurance) and "Atal Pension Yojana" at a programme in Nazrul Manch here.
Governor K.N. Tripathi, Chief Minister Mamata Banerjee, and union ministers Jayant Sinha and Babul Supriyo attended the function where Modi inaugurated a plaque by pressing a remote button to launch the schemes. The initiative was simultaneously launched throughout the country from 115 locations.
An film was then shown highlighting salient features of the three schemes. Modi then handed out certificates to the first three subscribers - maid Sonali Dhar, farmer Nitai Mondal and widowed shop owner Ruma Chakrabarty.
Claiming that 80-90 percent of the country's population did not have any insurance or pension cover, Modi asserted the new schemes were meant for empowering the poor to enable them to fight poverty.
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Describing himself as the prime servant, Modi asserted the schemes were not aimed at votes or political gains.
"I am not a politician, only the pradhansevak (prime servant). Unlike others who launch schemes for votes, these schemes are not meant for political gains. After 20 years or so when people will reap the benefits of the pension scheme, they will say, Modi did some good work," he said.
Launched on the day marking the 154th birth anniversary of Rabindranath Tagore, Modi said the new schemes targeted at the poor and workers from the unorganized sector, were reflective of the Nobel laureate's vision for empowering the poor.
"Tagore in his poem 'Atmadan' in 1906 has observed that the poor don't need support, they need to be empowered. His words are relevant even today. Today our resolve is to carry out that order of Gurudev," he said.
Stressing on his government's commitment towards poverty alleviation, Modi said the new initiative was an extension of the Jan Dhan Yojna in which over 15 crore bank accounts have been opened across the country.
He also claimed that over Rs.15,800 crore have been deposited by the beneficiaries under the Jan Dhan Yojna, and said the initiative has helped in plugging pilferage of lakhs of crores of rupees given in subsidies.
He said over five crore people including 42 lakh from Bengal have enrolled for the three schemes since enrolment process' trial run began May 1.
"It's a myth that big corporates usher in economic revolution... the country's financial system is run by the small entrepreneurs.
"Those who sell vegetables on the street junction.. the washerman, tea stall owners.. in India, there are 5.5 crore such people, who give momentum to our financial system. Big industrial ventures give employment to very few people.
"But these 5.5 crore smalltime businessmen provide living for 14 crore people," said Modi stressing on the importance of the target population of the new schemes.
He requested people to enlist the poorer section of the society under these schemes which will help them secure their future and family.
"Give Rs. 12 from your own pocket to insure your driver, cook, liftman, housemaid or sweeper for their benefit. (If you do so), will they ever leave you," he said.
The accident insurance scheme envisages cover of Rs.200,000 for accidental death or permanent total disability at an annual premium of Rs.12. It is available to those aged between 18 to 70 years with a savings bank account, giving their consent to join and enabling auto-debit on or before May 31 for the coverage period - June 1 to May 31 - on an annual renewal basis.
The life insurance scheme will offer a renewable one year life cover of Rs.200,000 to all savings bank account holders aged 18 to 50, covering death due to any reason, for an annual premium of Rs.330 per subscriber.
The pension scheme focuses on the unorganised sector and provides subscribers a fixed minimum pension of Rs.1,000, Rs.2,000, Rs.3,000, Rs.4,000 or Rs.5,000 per month starting at the age of 60 years, depending on the contribution option exercised on entering at an age between 18 and 40 years.
Thus, the period of contribution by any subscriber under APY would be 20 years or more. The benefit of fixed minimum pension enjoys sovereign guarantee.
The government contribution will be for those joining the scheme before Dec 31, 2015, not being members of any statutory social security scheme and not being income tax payers.
Estimates say that the unorganised sector workers, constituting 88 percent of the total labour force of 47.29 crore, as per the 66th Round of NSSO Survey of 2011-12, do not have any formal pension provision.
India Inc has hailed the schemes saying they widen the financial security net to the unorganised and underprivileged sector.
