Pension is a long term engagement and keeping in view the income profile of the targeted group, it is proposed to use insurance and health coverage as an incentive for long term engagement. Insurance components like insurance coverage of health and life may be bundled with APY to take care of health and life contingencies of the members.
Rashtriya Swastha Bima Yojana (RSBY), specially launched for unorganised worker falling under BPL category and latter extended to other categories of workers like Building and other construction workers registered with the Welfare Boards, Licensed Railway Porters, Street Vendors, MNREGA workers who have worked for more than 15 days during the preceding financial year, Beedi Workers, Domestic Workers, Sanitation Workers, Mine Workers, Rickshaw pullers, may also be extended to the members who will auto enroll under APY scheme for a monthly pension of Rs. 1000/- so that the health insurance benefit is restricted to the poorer section of society.
The beneficiaries under RSBY are entitled to hospitalization coverage up to Rs. 30,000/- per annum on family floater basis, for most of the diseases that require hospitalization. The benefit will be available under the defined diseases in the package list. The government has framed indicative package rates for the hospitals for a large number of interventions. Pre- existing conditions are covered from day one and there is no age limit. The coverage extends to maximum five members of the family which includes the head of household, spouse and up to three dependents. Additionally, transport expenses of Rs. 100/- per hospitalization are paid to the beneficiary subject to a maximum of Rs. 1000/- per year per family. The beneficiaries need to pay only Rs. 30/- as registration fee for a year while Central and State Government pays the premium as per their sharing ratio to the insurer selected by the State Government on the basis of a competitive bidding. The scheme will provide cashless benefits to the auto enrolled APY members in the empanelled hospitals.
Life insurance element and insurance against total/partial disability as provided under Pradhan Mantri Suraksha Bima Yojana (PMSBY) may also be clubbed with the APY auto enrolment. PMSBY covers the risk against accidental death and permanent total disability for Rs.2 Lakh, and permanent partial disability for Rs.1 lakh at a premium of Rs.12 per year. The Scheme is available to people in the age group 18 to 70 years with a savings bank account to enable auto-debit on annual basis which can be renewed periodically. The risk cover is offered by public sector general insurance companies or any other general insurance companies offering the product. The premium of Rs. 12 per annum will be paid by the beneficiaries from their saving account.