Indian Finance Minister Arun Jaitley has proposed to introduce a universal social security system and pension schemes, which was announced at budget 2015.
Aimed for the poor and the underprivileged, the schemes may be launched on the platform of the Jan Dhan Yojana.
Jaitley said: "A large proportion of India’s population is without insurance of any kind, health, accidental or life. Worryingly, as our young population ages, it is also going to be pension-less.
"Encouraged by the success of the Pradhan Mantri Jan Dhan Yojana (PMJDY), I propose to work towards creating a universal social security system for all Indians that will ensure that no Indian citizen will have to worry about illness, accidents or penury in old age."
The Pradhan Mantri Suraksha Bima Yojana will provide an accidental death risk of Rs2 lakh for a premium of Rs12 per year that will be debited from their bank account under the PMJDY.
The Atal Pension Yojana will provide a defined pension, depending on the contribution and its period, the government will contribute 50% of the beneficiaries’ premium limited to Rs1,000 each year, for five years, in the new accounts opened before December 31, 2015.
The Pradhan Mantri Jeevan Jyoti Bima Yojana will provide a cover of Rs2 lakh against both natural and accidental death, at a premium of Rs330 per year, or less than one rupee per day, for people in the 18-50 age group.
The reform measures that have been undertaken by the Indian Governement were also listed and included removing archaic and redundant provisions in insurance laws.
The other measures comprise enhancing Insurance Regulatory and Development Authority to implement more effective regulation and increasing the foreign equity cap in Indian insurance companies from 26% to 49%.
According to Economic Survey, insurance sector registered growth rate of 3.9% in 2013 from 2.3% in 2000, in the country.
With Life Insurance Corporation of India reporting 13.5 % growth, the sector posted a growth of 9.4% during 2013-14.