Widen PM bima to GNREGA workers
The government can further enhance insurance penetration in the country through compulsory enrolment of MGNREGA workers in PMJJBY and PMSBY, and rationalising the 18 per cent GST on insurance policies, according to an SBI report.
image for illustrative purpose
Mumbai: The government can further enhance insurance penetration in the country through compulsory enrolment of MGNREGA workers in PMJJBY and PMSBY, and rationalising the 18 per cent GST on insurance policies, according to an SBI report.
The report recommended that the insurance coverage can also be increased by plugging the protection gap through introduction of some standardised products for various sectors. "Though MGNREGA has provided livelihood security, we propose compulsory enrolment of MGNREGA workers in PMJJBY and PMSBY for a payment of only Rs 342 (330+12), which can be bought by the government," SBI Ecowrap said.
As only 10 per cent of HHs (households)/individuals complete 100 days of work, the cost of compulsory enrolment is only Rs 400-500 crore which may be borne by the government, the report said. The insurance penetration in India has increased from 2.71 per cent in FY01 to 5.20 per cent in FY09 due to liberalisation but thereafter the level of penetration declined and reached 3.30 per cent in FY14. However, with significant government support and universal insurance schemes (PMJJBY, PMSBY), the insurance penetration has started increasing again from FY15 and is at 4.20 per cent in FY21, the report noted.
Pradhan Mantri Jeevan Jyoti Bima Yojana (PMJJBY) is available to people in the age group of 18 to 50 years for a premium of Rs 330 per annum. The life cover under the scheme is of Rs 2 lakh. Pradhan Mantri Suraksha Bima Yojana (PMSBY) is available to people in the age group 18 to 70 years.
