Sampoorna Bima Gram Yojona - A Rural Insurance

Sampoorna Bima Gram Yojona - A Rural Insurance

Introduction -
Rural India is generally unaware of various insurance policies available in market and they have to depend on the various unauthorized money lenders. The union government has launched a new scheme to provide easy and affordable life insurance policies especially for the rural people. This scheme is named as Sampoorna Bima Gram Yojona  (SBGY). Under this scheme, the coverage of the Postal Life Insurance (PLI) would be extended and it would able to cover the professionals apart from the government employees. This scheme is launched by the Minister for Communications Manoj Sinha.

Objective of Sampoorna Bima Gram Yojona  –

• To provide Banking Services through the postal network.
• To provide the affordable life insurance services to the rural people.
• To bring all the villages under the Saansad Adarsh Gram Yojona and coverage of every household of the villages those are identified as the “Sampoorna Bima Gram Village”.

Features of the Sampoorna Bima Gram Yojona  –

• Under this scheme, one village with 100 households must be selected in each of the districts of the country.
• This scheme would cover each household with the Rural Postal Life Insurance (RPLI) policy of the identified village.
• The benefits of Postal Life Insurance would be provided to both of the Government, Semi- Government employees and other professionals like Doctors, Bankers, Lawyers, Engineers, Architects, Chartered Accountants and the employees of the companies listed in the Bombay Stock Exchange and National Stock Exchange.
• This scheme would enhance the scope of social security and must provide coverage of more people under PLI. 
• It would enhance the financial inclusions as well as strengthen the financial security of the people.
• Postal policies under this scheme must provide low premiums and high bonus to the consumers.
• The execution of this scheme is undertaken by the Department of Post.

Facts about PLI and RPLI-

• PLI was introduced in 1884.
• It was an old life insurance scheme for Government and Semi-Government employees.
• The PLI covers the employees of Central Government, State Governments, Central and State Government PSUs, Government colleges, Universities, autonomous and local bodies, Nationalized Banks, joint ventures with 10% Government and PSU stakes.
• It extends the facilities of the insurance to the Defence and Para Military employees.
• It manages the insurance schemes in group for the employees like “Grameen Dak Sevaks” of the Department of Post of India.
• It offers 6 types of the plans. Those are Joint Life Assurance (YUGAL SURAKSHA) , Convertible Whole Life Assurance (SUVIDHA), Endowment Assurance (SANTOSH), Whole Life Assurance (SURAKSHA), Anticipated Endowment Assurance (SUMANGAL), and Children Policy (BAL JEEVAN BIMA).
• The minimum age for this insurance scheme is 19 years and maximum age is 55 years.
• The Rural Postal Life Insurance (RPLI) was introduced in 1995 on the basis of the recommendation of the Malhotra Committee.
• It provides insurance cover to the people of weaker section and women living in the rural areas.
• Both of the Insurance policies provide low premiums and high bonus rates.
• There were approximately 46.8 lakh Postal Life Insurance and 146.8 lakh Rural Postal Life Insurance policies across India.

According to the Government, the RPLI and PLI must help to redefine the competitive scenario of the Insurance industry of India.