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Huge Step Towards Creating Universal Social Security System in India: CII President
May 09, 2015

With the Government fulfilling its commitment made in the Union Budget 2015-16, CII welcomes the launch of Pradhan Mantri Suraksha Bima Yojana (PMSBY), Pradhan Mantri Jeevan Jyoti Bima Yojana (PMJJBY) and Atal Pension Yojana (APV) as the milestone steps towards creating a universal social security system in India, especially for the poor and the under-privileged and the workers in the unorganised sector.  

“Moving forward from the success of Pradhan Mantri Jan Dhan Yojana (PMJDY), the next steps taken by the Government for establishing linkages of the three social security schemes with the bank accounts will go a long way in expanding the penetration of insurance and pension in the country and serve the cause of extending universal social security cover in the most economical and efficient manner. This is a huge step in the direction of creating universal social security system in India,” said Mr Sumit Mazumder, President, CII.  

Mr Mazumder added “the schemes presage a new era of inclusivity, not just because they will greatly benefit the common masses, but for the fact that these have been devised and designed in such a way that people will get affordable universal access to essential social security protection in the easiest possible manner linked to auto-debit facility from bank accounts”.  

“A total benefit of Rs 4 lakh in case of accidental death is a substantial sum considering the large masses of Indian population which have no social security and insurance at present,” commented Mr Mazumder.  

“We are happy that the Hon’ble Prime Minister chose Kolkata to launch these nation-wide schemes in the presence of, the Hon’ble Chief Minister of West Bengal. The schemes are also hugely beneficial for the people of West Bengal and will positively impact their lives and living,” Mr Mazumder said.  

Riding on the massive success of the Jan-Dhan Yojana, which has witnessed opening up of nearly 15 crore bank accounts (with total deposits of around Rs 16,000 crores) throughout the country since its launch by the Prime Minister in August last year, the next steps announced by the Government augurs well for expanding the coverage of insurance and pensions in the country.  

It is important to note that currently the overall penetration of insurance in the country stands low at only around 4 per cent whereas in case of pensions it is estimated that the unorganised sector workers, which constitute about 88 per cent of the total labour force does not have any formal pension provision.  

CII is confident that the three social security schemes will see similar success as witnessed by the Jan Dhan Yojana and will be working closely with the Government to encourage its member companies to subscribe to these schemes, said the CII release. 

New Delhi
9th May 2015

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