Women’s World Banking Highlights Jan Suraksha Schemes’ Impact on Rural Women in India
Women’s World Banking (WWB) has released a report showcasing the importance of Jan Suraksha schemes in enhancing financial resilience for rural women in India. The study, based on data from 912 Pradhan Mantri Jan Dhan Yojana (PMJDY) customers across Jharkhand, West Bengal, Assam, and Tamil Nadu, reveals that 88% of rural women have adopted insurance through these schemes.
Key Factors for Success
The success of the Jan Suraksha schemes is attributed to three main factors:
- Affordability: Even among women earning less than Rs 25,000 annually, 80% have enrolled in at least one insurance scheme.
- Ease of Access: Banking agents have played a crucial role, facilitating the enrollment of 72% of women through a simple process.
- Simplicity and Relevance: 83% of policyholders understand the insurance products, which are rated 7.7 out of 10 for usefulness.
Details of Jan Suraksha Schemes
The Jan Suraksha Schemes include:
- Pradhan Mantri Jeevan Jyoti Bima Yojana (PMJJBY): Offers Rs 2 lakh coverage for death due to any reason, renewable annually for individuals aged 18 to 50.
- Pradhan Mantri Suraksha Bima Yojana (PMSBY): Provides financial coverage for accidental death and disability, available to individuals aged 18 to 70 with an annual premium of Rs 12.
- Atal Pension Yojana (APY): Guarantees a fixed monthly pension starting at age 60 for people aged 18 to 40.
Challenges and Opportunities
Despite high adoption rates, 56% of rural women remain vulnerable to income shocks. In emergencies, 38% rely on savings, while 42% resort to borrowing. Only 2% use insurance to build resilience, highlighting a need for more suitable products and increased awareness.
Recommendations
To improve the situation, the report suggests strengthening public-private partnerships, enhancing banking agent training, and deploying more Bima Vahaks to reach underserved customers.
Kalpana Ajayan’s Insights
Kalpana Ajayan, Regional Head, South Asia at WWB, emphasized the importance of collaboration between private and government entities, innovation from insurance companies, and better training for banking agents to expand insurance coverage.
Doubts Revealed
Women’s World Banking -: Women’s World Banking is an organization that works to help women around the world access financial services. They focus on making sure women can save money, get loans, and have insurance to improve their lives.
Jan Suraksha Schemes -: Jan Suraksha Schemes are government programs in India designed to provide affordable insurance and pension plans to people, especially those in rural areas. These schemes help people protect themselves against financial difficulties.
Financial resilience -: Financial resilience means being able to handle money problems or unexpected expenses without too much difficulty. It is like having a safety net for when things go wrong financially.
Public-private partnerships -: Public-private partnerships are collaborations between the government and private companies. They work together to provide services or solve problems, combining resources and expertise from both sectors.
Banking agent training -: Banking agent training involves teaching people who help others with banking services, like opening accounts or understanding financial products. Good training ensures they can assist customers effectively, especially in rural areas.
Kalpana Ajayan -: Kalpana Ajayan is likely a person involved in the efforts to improve financial services for women in India. She emphasizes the importance of working together and coming up with new ideas to help more women access these services.
