Mumbai (Maharashtra) (India), October 15 (ANI): The Women’s World Bank (WWB) has released a report highlighting the vital role that Jan Suraksha programs play in strengthening the financial resilience of rural women, by providing them and their families with essential protection.

88 percent of rural women have adopted insurance through Jan Suraksha programs. This success is attributed to three major factors. The first is affordability; even among women earning less than Rs 25,000 (around USD 300) per year, 80 percent have joined at least one insurance plan.

Second, ease of access and registration played a key role, with bank agents introducing many women to the programs and facilitating the registration of 72 percent of them through a simple process.

Third, the simplicity and relevance of the insurance products contributed to their success, as 83 percent of policyholders said they understood 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 schemes launched by the Government of India to provide financial protection to citizens.

Pradhan Mantri Jeevan Jyoti Bima Yojana (PMJJBY) offers cover in case of death due to any reason, providing a sum assured of Rs2 lakh for a duration of one year, which can be renewed every year. It is open to people aged 18 to 50 with a savings account.

Pradhan Mantri Suraksha Bima Yojana (PMSBY) provides financial cover for accidental death and total disability up to Rs2 lakh, and partial disability up to Rs1 lakh. It is available to people aged 18 to 70 years with a savings bank account, with an annual premium of Rs12.

Atal Pension Yojana (APY) guarantees a fixed monthly pension from the age of 60. It is aimed at people aged 18 to 40 with a savings bank account.

Kalpana Ajayan, regional head for South Asia at Women’s World Banking, said: “Our collaboration with public sector banks shows that women are risk-aware and not risk-averse, making them a key customer base. While the PMJDY scheme has proven vital for financial inclusion, the Jan Suraksha scheme can significantly protect rural and urban women and their families.

She added: “Building strong relationships through agent banking is key to expanding insurance coverage, especially in rural areas. To maintain this momentum, we need collaboration between private and government entities, innovation from insurance companies, better training of banking agents and more Bima Vahaks to effectively achieve the last mile customers.

The report also highlights the critical role of banking agents, with 35 percent of women surveyed crediting their agents’ proactive outreach work, which helped them understand and enroll in insurance plans.

Despite widespread adoption of insurance, the report notes that about 56 percent of rural women remain vulnerable to income shocks due to health and climate-related emergencies.

In times of crisis, 38 percent of these women rely on their savings and bank payments, while 42 percent resort to borrowing to manage their financial difficulties.

Although microinsurance products have been widely adopted, only 2 percent of affected women have used insurance to build their resilience.

This was largely because many of them did not have the appropriate insurance policies or claimed the appropriate benefits. This gap indicates a substantial opportunity for the insurance industry to develop more suitable products and increase awareness of available options and the claims process.

Recommendations include strengthening partnerships between the public and private sectors, improving training of banking officers and deploying more Bima Vahaks to effectively reach underserved customers. (ANI)

This report is automatically generated from the ANI news service. ThePrint assumes no responsibility for its content.