Rural women beat urban counterparts to use social security schemes

Women in rural India seem more concerned about their own and family’s security than their counterparts in urban areas.

According to the latest gross enrolment data of three social security schemes, the number of rural female participants is higher than urban females. As on July 16, over 1.98 crore rural females got enrolled in three schemes — Pradhan Mantri Jeevan Jyoti Bima Yojana or PMJJBY (for life insurance), Pradhan Mantri Suraksha Bima Yojana or PMSBY (for accidental insurance cover) and Atal Pension Yojana or APY (pension scheme) — while the number of urban females was over 1.93 crore.

There could be many reasons for higher female participation in these three social security schemes. First, the premium rate is low. Second, there is minimal paper work. And third, these schemes work on auto debit. For PMJJBY, the annual premium is ₹330 for insurance cover of ₹2 lakh. It also covers death due to any reason and people in the age group of 18-50 years are eligible.

The annual premium in PMSBY is just ₹12. Under this scheme, risk cover available will be ₹2 lakh for accidental death (including death due to natural calamities) and permanent total disability, and ₹1 lakh for permanent partial disability. It may be noted that both these schemes, life as well as non-life, need annual renewal after payment of premium.

The paper work, too, is minimal, as one just needs to fill a form and submit it to the bank where the beneficiary has an account. The bank has to be instructed to debit the premium amount directly from the account.

Apart from the low premium, the success of Pradhan Mantri Jan Dhan Yojana is ensuring higher enrolment in social security schemes, said officials. As on July 8, the total number of Jan Dhan accounts was 16.73 crore, of which 6.64 crore accounts are in rural areas.

Though, overall rural females outnumbered urban ones, the scheme-wise details show that rural folks have better record in life and non-life insurance, while urban females are much ahead in the pension scheme. Officials believe that the requirement for continuous monthly payment might be one reason for lower interest, while ruling any change in the payment mechanism.

There is a very small difference between the enrolment of rural and urban males. Officials said rural males could soon surpass urban ones, as cities are exposed to more social security opportunities. The schemes, announced in the Budget, were launched on May 9.

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