During the last year, the government has launched and relaunched two insurance schemes and one pension scheme as part of the financial inclusion push. These are the Pradhan Mantri Suraksha Bima Yojana, Pradhan Mantri Jeevan Jyoti Bima Yojana and the Atal Pension Yojana. The two insurance schemes offer a cover of ₹2 lakh each while the pension scheme will guarantee a pension of ₹1,000 a month. Thus, all three involve amounts of insurance cover and pension that are unlikely to make a material difference to the readers of this newspaper. Most would have received SMSs from their banks for enrolling in the schemes, they may not have paid attention to something involving amounts that are so much smaller than their needs.
However, are these schemes reaching those that they are meant for? Asking around among people I know who could be potential beneficiaries of these schemes, I found the glass to be only half full. There were those who had no idea about these schemes, but predictably, there were some who had bank accounts, had received SMSs, but hadn't moved forward by replying to the messages. The biggest reason was simply lack of comprehension about what it really meant and what the benefits of enrolling in the schemes would be.
SMSs are a great medium for reaching a large number of people, but they have limitations when trying to explain something like this, specially in English. Here's the actual text of one such SMS: Dear Customer, get ₹2 lac accidental insurance cover at an annual premium of ₹.12 under Pradhan Mantri Suraksha Bima Yojana. To enroll, SMS PMSBY
What do you think are the chances of a significant proportion of the target population for these schemes to be able to comprehend this message and enroll in the scheme? To understand what the nominee is, or have a smartphone and click on the URL to look at the 'T&C'? In the enquiries I have made, not much. However, it's not my intention to be critical of this effort. Within the limitations that are obvious here, it's an effort that is better--much better--than nothing.
But it's not enough. Given the realities of selling financial products in India, it's a little doubtful whether there will be enough of a effort for these products. Banks will get pushed to meeting their targets, and somehow or the other, they will do so. However, I feel that for most of us personally, this is a sort of a financial equivalent of the each one teach one concept.
Among readers of this newspaper, practically everyone will be in touch with two or three or more people for whom having something like a two lakh rupee accident insurance would be very meaningful. It would make a big difference if you would take out a bit of time and ensure that everyone you know enrolls for these schemes. And for people who don't need it, tell them what you did, and ask them, in turn, to enroll a few more. It's easy to be sceptical of such activities but the fact remains that they can make a genuine difference to a very significant number of people. It's not much of an effort to try and personally make sure that all the gaps that you know about get filled.
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