New Delhi, January 20: As the 2017 budget fast approaches, the government is mulling the introduction of a slew of populist measures. Among them, the most likely to be implemented include an umbrella insurance scheme which will provide a cover worth Rs 2 lakh for all account holders under the Pradhan Mantri Jan Dhan Yojana for a period of three years. Further, the social security net of the poor and unemployed will be enhanced by a guaranteed Universal Basic Income.
The Universal Basic Income is a form of social security amount that will be provided on a monthly basis to those who do not have an income. While an amount has not been fixed, most analysts predict that the amount will be set at Rs 1,500 per month. UBI is crucial to the fight against the massive levels of extreme poverty in India as it will guarantee a basic income to everyone.
While the Universal Basic Income scheme if implemented will cost the government an approximate amount of Rs 1.6 lakh, the proposed insurance scheme will set the treasury back by more than Rs 90,000 crores. There are approximately 27 crore jan Dhan accounts in India. According to sources, the insurance cover will meet both accident and life insurance requiremens. Further unlike the Universal Basic Income scheme, the insurance scheme will have no limit on the maximum income.
The current social security schemes that specifically cater to the insurance schemes of the poor and rural India include the Pradhan Mantri Suraksha Bima Yojana (PMSBY), the Pradhan Mantri Jeevan Jyoti Bima Yojana (PMJJBY) and the Atal Pension Yojana (APY).