Atal-Bimit-Vyakti-Kalyan-Yojana

Atal Bimit Vyakti Kalyan Yojana

Why in discussion?
Recently during the 182nd meeting of the Employees’ State Insurance Corporation (ESIC), significant changes have been made in the eligibility criteria of ‘Atal Bimit Vyakti Kalyan Yojana- ABVKY’.

Atal Bimit Vyakti Kalyan Yojana key points:

  • These changes by ESIC are significant in terms of providing relief to the workers affected by the COVID-19 epidemic.
  • The Employees’ State Insurance Corporation is a multifaceted social system that works towards providing socio-economic protection to the labor population.

Atal Bimit Vyakti Kalyan Yojana UPSC:

  • The Atal Insured Persons Welfare Scheme was launched on July 1, 2018.
  • Under the scheme, the insured persons are provided cash compensation in case of unemployment.
  • The scheme is being implemented by the Employees’ State Insurance Corporation.
  • The scheme was initially launched on a pilot basis for two years.

Major decisions taken in ESIC meeting:

  • ABVKY has decided to extend the scheme for a period of one year i.e. till 30 June 2021.
  • It has been decided to exempt the existing conditions and the amount of relief under the scheme for workers who have lost their employment during the COVID-19 epidemic.
  • The conditions of exemption to be given under the scheme will be available for the period from 24 March 2020 to 31 December 2020.
  • During the period from January 1, 2021 to June 30, 2021, the scheme will be available with the original eligibility conditions.

Atal Bimit Vyakti Kalyan Yojana

Atal Bimit Vyakti Kalyan Yojana Changes in eligibility criteria:

Criteria under Basic Plan Revised criteria
  • The scheme provides relief up to 25% of the average daily income (for the last four contribution periods).
  • Payments are made for a maximum of 90 days of unemployment at one time during the life of the insured.
  • Relief payment will be made after 90 days of unemployment.
  • Contributions in relation to the employee must be paid or payable by the employer.
  • The insured should be in insurable employment for a minimum period of two years. The insured should have a contribution of at least 78 days during the preceding four contribution periods.
    • For maximum 90 days of unemployment, the amount paid under the scheme has been increased from 25% of the average wage to 50%.
    • Instead of paying relief after 90 days of first unemployment, now payment will be made after 30 days.
    • The insured can submit the claim directly to the ESIC branch office instead of the claim being forwarded by the last employer and payment will be made directly to the insured’s bank account.
    • The insured should be in insurable employment for a period of at least two years prior to his unemployment and his contribution should not be less than 78 days in the contribution period immediately before unemployment. There should be a minimum contribution of 78 days in one of the remaining three contribution periods before 2 years of unemployment.
Atal Bimit Vyakti Kalyan Yojana Other conditions under the scheme:
  • Employees who are covered under section 2 (9) of the Employees State Insurance Act – 1948.
    The insured person should be unemployed during the period of claiming relief.
  • The reason for unemployment should not be misconduct, retirement or voluntary retirement.
    The insured’s Aadhaar card and bank account should be linked to his database.
  • If the insured is working for more than one employer and the employee is covered under the State Insurance Scheme, he will be considered unemployed only if he is unemployed at all employers.
  • The insured shall not be able to avail any other cash compensation for the same period and relief under ABVKY simultaneously.

According to ESIC, nominees under the Atal Insured Person Welfare Scheme can directly submit their claim to the branch office of the organization. As per the new terms, instead of sending the claim to the old employer, the relief amount will be paid directly to the insured’s bank account, which will provide immediate relief to the beneficiary.

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