Pandemic Unemployment Insurance Benefits

In today’s age, the biggest problem is to provide employment to unemployed youths. The number of educated youth in India is increasing day by day, but employment is not being created in this proportion. At present, many companies are closing their plants. Big corporate houses are firing employees. So today we will talk about unemployment insurance.

According to a report by the Center for Monitoring Indian Economy (CMIE), there is an unemployment rate of 24.8% at the end of the week date May 9 due to the COVID-19 pandemic. It has increased unemployment in India. From this, it can be inferred that unemployment is a very big problem in India. In view of this, many experts have started to question the feasibility and existence of unemployment insurance. Keeping this in mind, information about unemployment insurance in India is being given through this article.

Concept of unemployment insurance

This facility is not offered by public or private sector insurance companies. Unemployment insurance is offered only by the government. If you have bought unemployment insurance and you are a salaried person, then you get the benefit of unemployment insurance on accidental employment for some reason.

It also benefits when companies ask their employees to resign from their jobs. When employees are reluctantly unemployed, there is a benefit of unemployment insurance. Employees can avail of this till a certain time. You can claim this insurance only when you meet the insurance conditions. For example, people who voluntarily resign from their jobs are not eligible to receive the benefit of insurance.

Do private insurance companies insure unemployment?

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Private insurance companies do not sell unemployment insurance separately. It can be purchased by combining it with a home loan protection policy or critical illness cover. Job insurance is a must for those working in the IT industry. Because many IT companies are merging with some other companies, acquiring other companies, or retrenching employees. In such a situation, the people of the IT sector are more likely to leave the job. You may face financial problems on leaving the job, which can help relieve unemployment insurance.

Schemes offering job insurance

  • The following insurance schemes provide job insurance cover
  • Royal Sundaram Safe Loan Shield
  • ICICI Lombard Secure Mind
  • HDFC Ergo Home Security Plan.
unemployment insurance
unemployment insurance

Job insurance exception

You will not be eligible to get job insurance in the following situations. On sacking due to poor performance before or after the probation period.
During self-employment. On leaving the job due to a pre-existing medical condition. On removal of an employee from the company due to unethical business work.

Key features of job insurance

Job insurance also offers benefits like other insurance. Insurance is available only when the reason for leaving the job is according to the terms of the policy. If the job is left for any reason other than the conditions which are already in the policy, then there is no benefit. When you buy a job insurance cover under a home loan protection plan, the term of the policy does not exceed 5 years. It has a premium of 3–5 percent of the total coverage.

Unemployment claims in India

Unemployment insurance is not as popular among Indians as other insurance. Under the unemployment claim, the Indian government provides some benefits to the unemployed. Labor laws in India have been enacted to work in the interest of employees. Many benefits are provided to the unemployed under the Employees State Insurance Act, 1948. You should have knowledge about unemployment claims in India.

Rajiv Gandhi Shramik Kalyan Yojana

On 1 April 2005 Central Government launched Rajiv Gandhi Shramik Kalyan Yojana. Under the Employees State Insurance Act, all employees are given the benefit of this scheme. The terms and conditions of the scheme change from time to time.

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Some features of Rajiv Gandhi Shramik Kalyan Yojana

Individuals who have at least three years of work experience can avail benefits under this scheme.
The scheme provides a maximum allowance of up to 1 year. Claim for the plan must be made within 6 months from the last working day.

Conclusion:

The beneficiary stops getting the allowance after getting a new job. Different insurance companies have their own different conditions and rules. Therefore, before purchasing such a policy, understand all the terms and conditions thoroughly. Also, save some funds for the future during the job, so that it can be used in opposite situations.

SACHIN AHIRWARhttps://personal-finance.in/
Hey, I’m Sachin. I’m a Blogger living in India. Guide for Personal Finance Planning & financial planning, Tax, Investment, Managing Money, Insurance, Retirement, Real Estate and Loans & more.

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