Started in 2012, the MGPSY combined the benefits of a life insurance and a contributory pension for Indian workers across 17 countries - mostly in the Middle East - who did not have college education and needed emigration clearance to leave India.
The objective of MGPSY was to encourage and enable the overseas Indian workers by giving government contribution to:
- Save for their Return and Resettlement (R&R),
- Save for their old age,
- Obtain a Life Insurance cover against natural death during the period of coverage.
Poor response is cited as the reason for shutting down the MGPSY that offered Indian workers abroad insurance cover and a pension.
The government will now focus on the ongoing Pravasi Bharatiya Bima Yojna to provide insurance cover for such workers, which is compulsory in nature, popular and affordable at a subscription of Rs.375 for 3 years.