Government Health Insurance For Elderly

The details of the percentage of elderly people covered under Health Insurance in India are not available at central level as the same is not centrally maintained by Insurance Regulatory And Development Authority (IRDA). The total number of lives (including elderly people) covered under any type of Health insurance policies during the Financial Year 2015-16 was 35.89 crore which is approximately 30% of the India’s total population.

Government of India is implementing Senior Citizen Health Insurance scheme (SCHIS) for Senior Citizens of age 60 years and above, belonging to Below Poverty Line (BPL) and 11 other defined designated categories such as MGNREGA Workers, Construction Workers, Mine Workers, Licensed Railway Porters, Street Vendors, Beedi Workers, Rickshaw Pullers, Rag Pickers and Auto/ Taxi drivers with effect from 01.04.2016, as a top up scheme of RashtriyaSwasthyaBimaYojna (RSBY). The health coverage is uptoRs. 30,000/--per annum per senior citizen for treatment packages, over and above RSBY entitlement.

At present SCHIS is being implemented in 8 States namely Assam, Gujarat, Karnataka, Kerala, Meghalaya, Nagaland, Tripura and Uttar Pradesh. 

The Population Division of United Nations Department of Economic and Social Affairs in its 2015 report has projected the elderly population (60+age group) to be 19.4% in 2050 as per the details given below:-

Percentage of elderly aged 60 years and above
Year	2015	2030	2050
%	8.9	12.5	19.4

Ministry of Health & Family Welfare had launched. “National Programme for the Health Care of Elderly” (NPHCE) during 2010-11 with a view to provide dedicated health care facilities to the elderly population in the country through State Health Society (SHS). This is a health care scheme under which provisions have been made to establish comprehensive health care setup tuned to needs of the elderly people.  Following facilities are being provided under the Programme:

• Geriatric OPD, 30 bedded Geriatric ward for in-patient care, etc at Regional Geriatric Centres.

• Geriatric OPD and 10 bedded Geriatric Ward at District Hospitals.

• Bi-weekly Geriatric Clinic at Community Health Centres (CHCs).

• Weekly Geriatric Clinic at Primary Health Centre (PHCs).

• Provision of Aids and Appliances at Sub-centres

Benefits To Ex-Defence Senior Citizens

The Government has provided certain concessions to senior citizens who have worked in the Armed Forces. Retired Defence Personnel enjoy special cost benefits in sectors such as travel, health, housing, reemployment and pension. Listed below are the various schemes applicable to them in the related field.

Medical Amenities

Benefits to retired defence personnel also include a range of medical facilities. Ex-servicemen and their families are allowed to go for in-patient and outpatient treatment at military hospitals at any time. The Ex-servicemen Contributory Health Scheme has helped them to a great extent. Non-pensioner ex-servicemen are provided financial assistance to meet medical expenses.

If military personnel are unable to avail medical treatment at military hospitals, they are provided around 75-90 per cent financial assistance from the Kendriya Sainik Board for the cost of treatment incurred at other hospitals as on March 31, 2007. This helps them to take care of their medical needs quite conveniently.

Pension Facilities

The nature of retirement or release from service determines  for Armed Forces personnel. On normal retirement or release from service after the completion of the prescribed tenure, a retiring/serving pension is paid. In cases of disablement in non-battle casualty cases, disability pension is sanctioned on the recommendation of the appropriate medical authority. Personnel who have been injured or wounded during war or war like operations are granted a special pension known as War Injury Pension.

Usually, the retiring pension is calculated at 50 per cent of the average computable emoluments drawn during the last 10 months. The commutation pension given to defence personnel is 43 per cent for the officers and 45 per cent for personnel below officer's rank. Civilians receive only 40 per cent as on March 31, 2007. These facilities enable them to lead a good standard of life even after retirement.

Family pension is given to the dependants of those defence personnel who passed away after retirement or while serving. These facilities are meant to provide financial stability to retired personnel and encourage others to join the defence forces.

Saving Instruments

The Senior Citizens Saving Scheme(External website that opens in a new window) or SCSS is a useful savings instrument available to ex defence service personnel. This scheme was recently launched by the Central Government and allows retired defence personnel to invest in this scheme at any stage of their life.

This SCSS provides retired defence personnel and others an interest rate of 9 per cent on their deposits, as on March 31, 2007. The Government has also been introducing other financial schemes and programmes for the benefit of retired defence personnel and their dependants.

SCSS are available through any post office that does savings bank work. There are also 24 nationalised banks and one private sector bank (ICICI Bank) through which senior citizens Saving Schemes are available.

Travel Concessions

Travel concessions are available for road, rail as well as air travel. Indian Railways allows free travel in air conditioned (AC) II tier coaches of mail or express trains and AC III tier in Rajdhani trains for winners of gallantry awards such as Param Vir Chakra, Mahavir Chakra and Vir Chakra.

As far as war widows of defence personnel are concerned, they are allowed a concession of 75 per cent on the fare for travelling in second class. In planes, 75 per cent concession is available to retired defence personnel who are Level I or Level II gallantry award winners. The Indian provides a 50 per cent discount to retired defence officials who are gallantry awardees on airline tickets, as on March 31, 2007.

Re-employment of Ex-servicemen

Retired defence personnel may earn a living even after retirement. The Central and state governments provide a number of concessions to ex-servicemen(External website that opens in a new window) (ESM) for their re-employment in Central or State government posts. This consists of reservation of posts, relaxation in age and educational qualifications and exemption from payment of application or examination fees. While giving jobs, a special priority is provided to disabled ex-servicemen and dependants of deceased service personnel on compassionate grounds. Here are a few details on employment opportunities for ex-servicemen(External website that opens in a new window).

• Central Government has reserved 10 per cent of Group "C" posts and 20 per cent of Group "D" posts for ex-servicemen
• Public Sector Units and nationalized banks provide 14.5 per cent reservation for Group "C" posts and 24 per cent reservation in Group "D" posts
• 10 per cent of posts of Assistant Commandant in the paramilitary forces are reserved for ex-servicemen.

The Directorate General of Resettlement(External website that opens in a new window) (DGR) registers or sponsors private ex-servicemen security agencies for providing security guards to various Public Sector Units and industries in the private sector. Some states have set up their own Ex Servicemen Corporations to provide security services in the state. The Department of Public Enterprises had issued instructions to all Public Sector Units to hire security personnel only from state ex-servicemen corporations or DGR sponsored Security Agencies. Currently there are around 1800 ESM security agencies that have provided employment to over 1,10,000 ex- servicemen.

The government has also set up self-employment schemes to help retired defence personnel set up small scale or medium scale businesses. The Self Employment Scheme for Ex Servicemen II and III (SEMFEX-II and SEMFEX-III) and the National Equity Fund Scheme are some such schemes. These schemes provide loans to ex servicemen for starting a small-scale business. The application for the sanction of a loan needs to be submitted to the Zila Sainik Board.

Other employment opportunities for Ex-Servicemen are the Coal Transport Companies Scheme and the Coal Tipper Scheme. Petrol Pumps, LPG and Kerosene Dealerships have been allotted to personnel with disabilities that can be attributed to military service. Preference is given to ex-Servicemen, disabled defence personnel and widows in the allotment of public telephone booths. In the National Capital Region of Delhi, ex defence personnel are involved in operating Mother Dairy booths, vegetable stores and Compressed Natural Gas stations.

Housing Benefits

Housing is a mandatory requirement in everyones life. Whether you are retired from the defence forces or a regular senior citizen, having a house means a lot when it comes to asserting your independence. Keeping this in mind, the central government as well as several state governments has come up with plans and schemes to enable retired defence personnel to buy a home or piece of land. Ex military personnel may also apply for financial assistance to construct a home..

The Army Welfare Housing Organization(External website that opens in a new window) or AWHO is a society that is responsible for constructing houses for serving men, retired army personnel and widows of army personnel at selected stations in the country. Recently, AWHO has launched the 'Jai Jawan Awas Yojna' programme to construct economical houses for serving Junior Commissioned Officers and Other Ranks of the Army. These houses are being made near Army cantonments so that families residing there have easy access to facilities such as army hospitals and army schools in the area.

Central Government Health Scheme For Senior Citizens

        

Senior citizens and retired personnel who have worked in Central Government bodies are assured of their health care needs through the Central Government Health Scheme or CGHS. This scheme for pensioners provides medical assistance to retired central government officials along with their dependents, freedom fighters and widows of government officials. The CGHS Scheme also covers Delhi police personnel, retired judges of the Supreme Court, Parliament secretaries and their families.

Moreover, along with Ex–Governors and Ex–Vice Presidents of India, accredited journalists are also eligible to be covered under the Central Government’s Health Scheme. The Central Government Health Scheme initially started functioning in Delhi. After a few years, it spread to cities such as Allahabad, Ahmedabad, Bangalore, Mumbai, Chennai, Kolkata, Hyderabad, Jaipur and Patna.

The Central Government Health Scheme offers health services through Allopathic and Homeopathic systems as well as through traditional Indian forms of medicine such as Ayurveda, Unani, Yoga and Siddha. These medical facilities are provided through dispensaries and polyclinics. Chief medical officers and medical officers operate these dispensaries and are responsible for the smooth functioning of the scheme.

The main components of the scheme are dispensary services including domiciliary care, specialist consultation facilities, X–ray, Electro Cardiogram (ECG), laboratory testing, hospitalization, purchase and distribution of medicines and provision of health education.

Features,Taxes, Benefits Of Senior Citizen Fixed Deposits

Features of Senior Citizen Fixed Deposit

• The features of the senior citizen fixed deposits remain the same as regular term deposits. Some of these features are listed below.

• These fixed deposits also offer deposit tenures ranging from 7 days to 10 years depending on the bank.

• Nomination facilities are also available on these deposits where depositors can declare a person.

• The interest rates offered under these schemes are decided based on the duration of the term deposit.

• The interest earned is compounded on a quarterly basis and can be credited to an account or added to the maturity value of the FD.

• Once created, the fixed deposit can be closed prematurely at any time. Such a premature withdrawal is not possible with tax saver FDs and may attract penalties with regular FD based on the bank's rules.

• The limits for the amounts that can be deposited under these schemes can range from Rs. 1 crore to higher amounts. These limits will be decided by banks and may vary from one bank to the next.

• Some of these deposits can even be tax saver fixed deposits which come with lock in periods of 5 years and still offer the special interest rates to senior.

Taxes on Senior Citizen FDs

• The interest earned on senior citizen fixed deposits may be liable for income tax based on the applicable laws. These taxes, if any, are deducted at the source however, in case you are not liable to pay taxes you can submit forms 15G or 15H to the banks.

• If the term deposit is an NRE deposit then it may not be liable for taxes however in the case of NRO and FCNR deposits interest earned may be liable for taxes.

Benefits of FD for Senior Citizen

• There are a multitude of benefits that can be gained from opening senior citizen fixed deposits, chief among which are:.

• They offer special interest rates which tend to be higher, thereby resulting in more earnings.

• It creates a safe space for the money to grow in at a steady pace.

• The interest earned on these deposits can be turned into monthly incomes thus providing more peace in your retirement years.

• The senior citizen fixed deposit can also be a tax saver deposit which help get tax deductions under section 80C of the IT Act.

• Senior citizens can choose different interest payout options where interest is credited to the depositors savings account on a frequent basis - either monthly, quarterly, half-yearly or yearly.

• Regular interest payout option can be a boon for those who are retired because it acts as a source of supplementary income

Special Fixed Deposits For Senior Citizens

Senior Citizen Fixed Deposits (FDs) are customized term deposit plans that allow those above 60 to get maximum returns out of their investment. All banks in India offer higher interest rates for this age group, making FDs a lucrative option. These types of deposits are referred to as senior citizen fixed deposits. There are a number of senior citizen fixed deposit schemes to choose from and they come with a wide range of features, including loan/overdraft facility, flexible tenures and interest payout options, among others.

These deposits are also used by senior citizens to park their excess money in a safe place where it can earn a decent interest and maybe even provide them an additional source of income. These deposits are almost the same as the regular fixed deposits. Possibly the main point on which they may differ from regular fixed deposits is when it comes to interest rates because many banks offer special interest rates to senior citizens. Another point on which they may differ from regular fixed deposits would be that to open a senior citizen fixed deposit, you will be required to submit proof of age.

Key features and benefits of senior citizen FDs:

• Attractive, higher interest rates
• Guaranteed returns
• Safe and secure investment
• Periodic interest payment option
• Online booking
• Premature withdrawal, nomination, loan and sweep-in facility

Senior Citizen Fixed Deposit Interest Rates

Many banks in India offer special fixed deposit accounts tailor made for senior citizens. A higher interest rate is paid on their fixed deposits which tend to be up to around 0.5% more than the average FD rate per annual.

Many banks in India are offering high interest rates on senior citizen fixed deposits. The interest rate ranges from 4.50% to 8%.

• The highest rate of interest on senior citizen FDs is being offered by IDFC Bank, which is 8% for a tenure of 366 days. For a time period of 367 days to 731 days, the rate of interest paid by IDFC is 7.75%.
• DCB Bank, Repco Bank and Lakshmi Vilas Bank also offer good interest rates that range from 7.35% to 7.75% for all deposits held for a time period that extends between 1 to 5 years.
• IDFC Bank offers 7.70% interest on term deposits held for more than 5 years, while Tamilnad Mercantile Bank, Lakshmi Vilas Bank, DCB Bank and Deutsche Bank offer 7.50% for the same tenure.
• SBI FD Rates for senior citizens vary from 5.75% to 6.75%. The highest rates offered by SBI are for tenures ranging between 46 days to less than 2 year, where the interest paid is 6.75% per annum.
• ICICI Bank Fixed Deposit Rates range from 4.50% to 7.25%. The highest rate of interest is offered for a time period that varies between 390 days to 2 years, where the rate offered is 7.25%.
• SBI, HDFC and Canara Bank offer an interest rate of 6.50% for all senior citizen FDs that are held for more than 5 years.

Eligibility for Senior Citizen FD

If you want to open a senior citizen fixed deposit then you will need to be a resident of India. NRI senior citizens too can open these FDs through NRE or NRO accounts. You also need to be above the age of 60 years at the time of opening the fixed deposit.

•          The depositor must have crossed 60 years of age on the date on which he/she opens  the respective term deposit account
•         Some banks may allow customers who are more than 55 years and have taken early retirement to apply for this type of FD scheme. This rule may vary from bank to bank and are subject to certain terms and conditions

Documents required for opening Senior Citizen FD

•          Age proof document
•          Passport
•          Aadhaar Card
•          PAN card
•          Photograph