Indian Economy
General Knowledge

National Pension & Insurance Scheme

National Pension Scheme

» National Pension System (NPS) is a voluntary, defined contribution retirement savings scheme.
» The NPS has been designed to enable systematic savings during the subscriber’s working life. It is an attempt towards finding a sustainable solution to provide an adequate retirement income to every citizen of India.
» Under the NPS, an individual’s savings is pooled in a pension fund.
» These funds are invested by Pension Fund Regulatory and Development Authority (PFRDA) regulated professional fund managers as per the approved investment guidelines in the diversified portfolios comprising of government bonds, bills, corporate debentures, and shares.
» These contributions would grow and accumulate over the years, depending on the returns earned on the investment made.
» The eligibility is from 18 years to 60 years of age, including NRIs.

New Insurance Schemes

During the fiscal 2015-16, the government of India launched two new insurance schemes aimed at creating a universal social security system for all Indians, especially the poor and the underprivileged.

Pradhan Mantri Suraksha BimaYojana (PMSBY)

» It offers a renewable one-year accidental-death-cum-disability cover to all subscribing bank account holders in the age group of 10 to 70 years for a premium of Rs. 12 per annum per subscriber.
» The risk coverage available will be rupees two lakh for accidental death and permanent total disability and rupee one lakh for permanent partial disability, for a one-year period stretching from 1 June to 31 May.

Pradhan Mantri Jeevan Jyoti Bima Yojana (PMJJBY)

The scheme offers a renewable one-year term life cover of rupees two lakh to all subscribing bank account holders in the age group of 10 to 50 years.