The amendment Act removed archaic and redundant provisions in the legislations and
incorporated certain provisions to provide Insurance Regulatory and Development Authority of
India (IRDA) with the flexibility to dischange its functions more effectively and efficiently. It
also provided for enhancement of the foreign investment cap in an Indian insurance company
from 26 per cent to an explicitly composite limit of 49 per cent with the safeguard of Indian
ownership and control. The Insurance Laws (Amendment) Act, 2015 also enabled foreign
reinsurers to set up branches in India. It also enable Lloyds of UK and its members to operate in
India through setting up of branches for the purpose of reinsurance business or an investors in an
Indian Insurance Company within the 49 per cent cap.
Pradhan Mantri Vyay Vandana Yojana
Government launched the Pradhan Mantri Vyay Vandana Yojana (PMVVY) to protect
elderly persons aged 60 years and above against a future fall in their interest income due to the
uncertain market condition, as also to provide social security in old age. The Scheme is being
implemented through LIC of India. It provides an assured return of 8 per cent per annum payable
monthly for 10 years. The differential return i.e., the difference between return generated by LIC
and the assured return of 8 per cent would be borne by Government of India as subsidy on annual
basis. It was open for subscription for a period of one year i.e., from 4th May, 2017 to 3 rd May,
2018. In pursuance of Budget 2018-19, Government approved the extension of Pradhan Mantri
Vyay Vandana Yojana up to 31st March, 2020 and enhanced the limit of maximum purchase
price of ₹ 7.5 lakh per family to ₹ 15 lakh per senior citizen.
Aam Aadmi Bima Yojana
For the benefit of the weaker sections of the society, Government of India floated a highly
subsidized insurance scheme, viz., Aam Aadmi Bima Yojana (AABY) which is administered
through Life Insurance Corporation of India. Under this social security scheme below poverty
line (BPL) and marginally above poverty line citizens are covered under 48 identified
occupations. The scheme provides death cover of ₹ 30,000/- in case of natural death. In case of
death or total disability (including loss of two eyes/two limbs) due to accident, a sum of ₹
75,000/- and in case of partial permanent disability (loss of one eye/ limb) due to accident, a sum
of ₹ 37,500/- is payable to the nominee/ beneficiary. All these benefits are paid for a nominal
premium of ₹ 200/- per member per annum, out of which ₹ 100/- is borne by the central
government through Social Security Fund maintained through LIC of India, and the balance
premium of ₹ 100/- is borne by the member and/or nodal agency and/or central/state government
department which acts as the nodal agency. In addition, there is an add on benefit of scholarship
at the rate of ₹ 1,200/- per annum per child for two children per family of the insured members
studying from 9th to 12th standard (including ITI courses).
Social Security Schemes
Atal Pension Yojana
The Atal Pension Yojana (APY) was launched in May, 2015, to address the longevity risks
among the workers in unorganised sector who are not covered under any statutory social security
scheme. The APY is focussed on all citizens in the unorganised sector, who join the National
Pension System (NPS) administered by the Pension Fund Regulatory and Development
Authority (PFRDA).