A yojana to avoid all pradhan mantri yojanas!

If you are reading this, no pradhan mantri yojana issued by this or previous governments is suitable for you! I am baffled as to why so many affluent people are interested in peanut yojanas!

Let us evaluate each of these yojanas in about 10-15 seconds!

Pradhan Mantri Suraksha Bima Yojana

You need an accident cover which is at least 10 times more than your mediclaim cover. This accident policy has a ceiling of 2 lakhs. Enough said. Reject.

Pradhan Mantri Jeevan Jyoti Bima Yojana

You need a life insurance cover that is either 10 -12 times your annual income or a cover that will handle your families immediate and long-term goals. This gives a life cover of 2 lakhs. Enough said. Reject.

Atal Pension Yojana

This is not for those enrolled with EPF or NPS.  Thank god!

Sukanya Samriddhi Yojana

A payout of 50% at age and 100% at age 21. This is parents who kill girl children. Parents who fix the girls marriage upon birth. Parents who see the girls marriage as more important than education and as a burden. People who don't understand risks. People who cannot think beyond EEE. People who are satisfied with a negative real return. Enough said. Reject.

Read more:

Sukanya Samriddhi Account – Do Not Invest

Corrigendum: Sukanya Samriddhi Account

Varishta Pension Bima Yojana

Only for those who wish to take the biggest of risks - not take any risk at all.

Read more: Varishta Pension Bima Yojana – Do Not Buy!
There are many other pradhan mantri yojanas directed at small entrepreneurs, cottage industries, rural development, skill training etc.
You could consider suggesting the scheme to the hired help in your home/society/office. The Sukanya , Varishta and Atal schemes, where people 'get' something are easy to sell. Not sure about the others.

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45 thoughts on “A yojana to avoid all pradhan mantri yojanas!

  1. praphul

    What do you mean by reject.... these are no frills schemes meant for those who do not have access to financial services and where with all to understand complex financial products. Great schemes for social inclusion being delivered at door steps

    Reply
    1. freefincal

      People reading this do not require financial inclusion. The 'reject' is directed at them. The no frills is the reason why they may not sell!

      Reply
  2. praphul

    What do you mean by reject.... these are no frills schemes meant for those who do not have access to financial services and where with all to understand complex financial products. Great schemes for social inclusion being delivered at door steps

    Reply
    1. freefincal

      People reading this do not require financial inclusion. The 'reject' is directed at them. The no frills is the reason why they may not sell!

      Reply
  3. Aditya Maheshwari

    Have got different opinions. I think we should appreciate the efforts by government. Yes, we need more insurance (both viz. Accidental & Life). However, here the target group is those who hardly think for these products. No body sell to them because they are not prospective customers due to their poor income.
    Atal Pension Yojna is also good effort in the similar way.
    And, we should also appreciate the fact that product evolves over the period of time. Let's have something rather than nothing. May be, in future our policy makers will get the products which are more customer friendly (after reading your blog).
    Aditya

    Reply
  4. Aditya Maheshwari

    Have got different opinions. I think we should appreciate the efforts by government. Yes, we need more insurance (both viz. Accidental & Life). However, here the target group is those who hardly think for these products. No body sell to them because they are not prospective customers due to their poor income.
    Atal Pension Yojna is also good effort in the similar way.
    And, we should also appreciate the fact that product evolves over the period of time. Let's have something rather than nothing. May be, in future our policy makers will get the products which are more customer friendly (after reading your blog).
    Aditya

    Reply
  5. Atul

    Thanks Pattu Sir, I think the point highlighted in the post is all these schemes are focused on the bottom of the pyramid. Here people commit suicide for debt of as little as 20-30k.. For our brothers and sister at those income levels 2L is a huge sum.. As per MNEGRA rural poor supposed to get 100 days of work in an year @ 100 per day ie 10k pa. So, for this income group 2L is a 20 years income (not including inflation).

    I personally think, the judgement should have been to encourage this scheme with your servants, maids, drivers, cobblers and with similar income group and ask them to promote the scheme at their native places

    Reply
  6. Atul

    Thanks Pattu Sir, I think the point highlighted in the post is all these schemes are focused on the bottom of the pyramid. Here people commit suicide for debt of as little as 20-30k.. For our brothers and sister at those income levels 2L is a huge sum.. As per MNEGRA rural poor supposed to get 100 days of work in an year @ 100 per day ie 10k pa. So, for this income group 2L is a 20 years income (not including inflation).

    I personally think, the judgement should have been to encourage this scheme with your servants, maids, drivers, cobblers and with similar income group and ask them to promote the scheme at their native places

    Reply
  7. Nikhil

    Well its reject for well paid class because the reason mentioned by you. But what about the parents of all those who are not working . doesn't it sound good policy for them with that amount.
    Also it is meant for lower income groups who cant afford insurance or who haven't brought the same, for them it looks good. 2 lakhs is very small amount for some but still in India this amount means something for many people.
    Around 90% population don't have any insurance coverage in India. We must appreciate that they are doing something for those who are lower income and not insured .
    Looking for an evaluation from that perspective.
    Thanks.

    Reply
    1. freefincal

      For parents,only the pension plans are relevant. Suitability will depend on their willingness to adapt, the corpus they have etc. Still I dont think it make a big difference to their pension income (that is for parents who are not from 'low income' group)

      Reply
  8. Nikhil

    Well its reject for well paid class because the reason mentioned by you. But what about the parents of all those who are not working . doesn't it sound good policy for them with that amount.
    Also it is meant for lower income groups who cant afford insurance or who haven't brought the same, for them it looks good. 2 lakhs is very small amount for some but still in India this amount means something for many people.
    Around 90% population don't have any insurance coverage in India. We must appreciate that they are doing something for those who are lower income and not insured .
    Looking for an evaluation from that perspective.
    Thanks.

    Reply
    1. freefincal

      For parents,only the pension plans are relevant. Suitability will depend on their willingness to adapt, the corpus they have etc. Still I dont think it make a big difference to their pension income (that is for parents who are not from 'low income' group)

      Reply
  9. Amit

    I could not agree more with the comments made by fellow readers above. We should appreciate these schemes are launched to bring social security and financial inclusion for the people who are yet to see these benefits even after 67 years of Independence. This govt is having right intentions to empower poor by enhancing their economic condition and bringing them under social security and financial inclusion. I would say Hats off to you Modi!

    Reply
  10. Amit

    I could not agree more with the comments made by fellow readers above. We should appreciate these schemes are launched to bring social security and financial inclusion for the people who are yet to see these benefits even after 67 years of Independence. This govt is having right intentions to empower poor by enhancing their economic condition and bringing them under social security and financial inclusion. I would say Hats off to you Modi!

    Reply
  11. Anand Balakrishnan

    People in this forum may not immensely benefit with 2 lacs but hei any amount goes a long way.

    Even for all of us in this forum it does not hurt to get another 2 lacs should something happen to us, actually speaking.

    Reply
  12. Anand Balakrishnan

    People in this forum may not immensely benefit with 2 lacs but hei any amount goes a long way.

    Even for all of us in this forum it does not hurt to get another 2 lacs should something happen to us, actually speaking.

    Reply
  13. Dr Rajeev Kapur

    The schemes will help widen the insurance and health coverage. It is a good step. We should support it in every way. Multiple rejections suggested above seem out of place and irrational. There is nothing wrong if any of the readers of this column takes up the additional cover provided. In fact if more of us join this the scheme is likely to reach the minimal critical subscriber numbers early.

    Reply
  14. Dr Rajeev Kapur

    The schemes will help widen the insurance and health coverage. It is a good step. We should support it in every way. Multiple rejections suggested above seem out of place and irrational. There is nothing wrong if any of the readers of this column takes up the additional cover provided. In fact if more of us join this the scheme is likely to reach the minimal critical subscriber numbers early.

    Reply
  15. Dr sunil goel

    Please change the name to have a yogna to support pradanmantri yogna.
    As of now you have understood and you should support our PM and people people. If people like us will join hand with pradanmantri yogna then only our poor people will get benefit.
    Like Pm told in yesterday speech, 12 Rs is cost of tea and this could easily paid by you for your driver, guard or maid.
    Don't mind.

    Reply
  16. Dr sunil goel

    Please change the name to have a yogna to support pradanmantri yogna.
    As of now you have understood and you should support our PM and people people. If people like us will join hand with pradanmantri yogna then only our poor people will get benefit.
    Like Pm told in yesterday speech, 12 Rs is cost of tea and this could easily paid by you for your driver, guard or maid.
    Don't mind.

    Reply
  17. வெற்றி வேல்

    It is funny that inspite of being very clear that these schemes are for a particular strata of the society and is not for the strata which reads these posts, so many are saying the same thing....

    The low cost insurance is subsidised for the poor and the AFFORDABLE class should not take it and increase Govt. Subsidy account. It is like the affordable group which should give up the LPG Subsidy...

    Affordable class can support by reimbursing this premium for their servants, maids, drivers, peons, etc.

    Reply
  18. வெற்றி வேல்

    It is funny that inspite of being very clear that these schemes are for a particular strata of the society and is not for the strata which reads these posts, so many are saying the same thing....

    The low cost insurance is subsidised for the poor and the AFFORDABLE class should not take it and increase Govt. Subsidy account. It is like the affordable group which should give up the LPG Subsidy...

    Affordable class can support by reimbursing this premium for their servants, maids, drivers, peons, etc.

    Reply
  19. praveen k

    Dear Pattu sir,
    was expecting a post from you on this from yesterday. do agree with your view.

    But was thinking of a senario, say i take this accidental insurance on top of my permanent disability insurance from a private insurer. Say during a claim due to permanent disability due to some accident, the private insurer rejects it showing some unclear clause and this yojana accepts my claim(since the terms are very simple). Can i use this to fight my private insurer?

    praveen thomas

    Reply
  20. Vishal Rochlani

    Would not agree with You Mr. Pattu on this. The Insurance should be over and above what is taking. Many affluent families are also not covered under insurance. So they will go for it. It is rightly said more than 90% are not covered under Life Insurance. Accident Insurance the % will be more. So people will go for it.

    Reply

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