It was launched in 2015 with the objective of enhancing the penetration of accident insurance in poor and underprivileged section of the society.
Under the scheme, a one year personal accident insurance, renewable from year to year, offering death/disability due to an accident is provided to people of 18-70 years age group.
Under the scheme, risk coverage of 2 lakh for accidental death or permanent total disability and 1 lakh for permanent partial disability is ensured at a premium of Rs. 12/year.
If one opts for this scheme, there’s facility of auto-debit from bank account.
Problems/Issues
As of March 2019, 15.47 crore people have been enrolled under the scheme and 33000 claims have been disbursed. The rising loss ratio has forced general insurers to urge government to raise the premium amount under the scheme.
Poor information dissemination resulting into inclusion and exclusion errors i.e. needy not enrolled and the well-off taking the advantage of the scheme.
Solutions
The government must ensure proper information dissemination to ensure that the needy have important social security coverage.
