Mumbai (Maharashtra) [India], October 15 : Women's World Banking (WWB) has released a report emphasizing the vital role that Jan Suraksha schemes play in strengthening financial resilience for rural women, providing essential protection for them and their families.
The study draws on data from 912 Pradhan Mantri Jan Dhan Yojana (PMJDY) customers in the states of Jharkhand, West Bengal, Assam, and Tamil Nadu.
88 per cent of rural women have adopted insurance through the Jan Suraksha schemes. This success is attributed to three major factors. First is affordability; even among women earning less than Rs 25,000 (approximately 300 USD) annually, 80 per cent have enrolled in at least one insurance scheme.
Second, the ease of access and enrollment has been instrumental, with banking agents introducing many women to the schemes and facilitating the enrollment of 72 per cent of them through a simple process.
Third, the simplicity and relevance of the insurance products have contributed to their success, as 83 per cent of policyholders reported understanding the concept, and the usefulness of the products was rated 7.7 out of 10.
The Jan Suraksha Schemes are a trio of social security programs launched by the Indian government to ensure financial protection for citizens.
Pradhan Mantri Jeevan Jyoti Bima Yojana (PMJJBY) offers coverage for death due to any reason, providing a sum assured of Rs2 lakh for a one-year term, which can be renewed annually. It is open to individuals aged 18 to 50 who hold a savings bank account.
Pradhan Mantri Suraksha Bima Yojana (PMSBY) provides financial coverage for accidental death and total disability up to Rs2 lakh, and partial disability up to Rs1 lakh. It is available to individuals aged 18 to 70 with a savings bank account, with an annual premium of Rs12.
Atal Pension Yojana (APY) guarantees a fixed monthly pension starting at age 60. It is designed for people aged 18 to 40 who have a savings bank account.
Kalpana Ajayan, Regional Head, South Asia at Women's World Banking, said, "Our collaboration with public sector banks shows that women are risk aware not risk averse, making them a key customer base. While the PMJDY scheme has been vital for financial inclusion, the Jan Suraksha scheme can significantly protect rural and urban women and their families."
She added, "Building strong relationships through banking agents is essential for expanding insurance coverage, particularly in rural areas. To sustain this momentum, we need collaboration between private and government entities, innovation from insurance companies, better training for banking agents, and more Bima Vahaks to effectively reach last-mile customers."
The report also highlights the critical role of banking agents, with 35 per cent of the women surveyed acknowledging proactive outreach from their agents, which helped them understand and enroll in insurance schemes.
Despite the widespread adoption of insurance, the report notes that approximately 56 per cent of rural women remain vulnerable to income shocks due to health and climate-related emergencies.
In times of crisis, 38 per cent of these women rely on bank account savings and payments, while 42 per cent resort to borrowing to manage financial difficulties.
Although microinsurance products have seen high adoption, only 2 per cent of affected women used insurance to build resilience.
This is largely because many had not taken out relevant policies or did not claim the appropriate benefits. This gap indicates a substantial opportunity for the insurance sector to develop more suitable products and increase awareness about available options and the claims process.
Recommendations include strengthening partnerships between public and private sectors, improving the training of banking agents, and deploying more Bima Vahaks to effectively reach underserved customers.