Published: 13th Jun, 2022
Context
The Insurance Regulatory and Development Authority of India (IRDAI) has eased capital requirement criteria considerably for insurers in order to promote their involvement in the government's flagship scheme, Pradhan Mantri Jeevan Jyoti Bima Yojana (PMJJBY).
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Key Points:
- The government has recently hiked the premium rates for the two flagship schemes – PMJJBY and Pradhan Mantri Suraksha Bima Yojana (PMSBY) — to make these schemes economically viable.
- Effective June 1, the yearly premium for PMJJBY rose from Rs 330 to Rs 436.
- The PMSBY premium has increased from Rs. 12 to Rs. 20.
- The premium charge for PMJJBY has been increased to Rs 1.25 per day.
Pradhan Mantri Jeevan Jyoti Bima Yojana (PMJJBY):
- The PMJJBY is open to persons aged 18 to 50 who have a bank account and agree to join/enable auto-debit. Aadhar would serve as the primary KYC for the bank account.
- This policy provides risk coverage of Rs. 2 lakh in the event of the insured's death owing to any cause.
- The premium is Rs. 330 per annum (Now revised to Rs. 436) which is to be auto-debited in one installment from the subscriber's bank account as per the option given by him.
- The program is being offered by the Life Insurance Corporation and all other life insurers who are prepared to sell the product on comparable conditions, with the relevant permissions, and have partnered with banks for this purpose.
- Performance:
- The PMJJBY has 6.4 crore active users as of March 31, 2022.
- As of March 31, 2022, the implementing insurers have collected Rs 9,737 crore in premiums and paid claims totaling Rs 14,144 crore under the PMJJBY scheme.
Pradhan Mantri Suraksha BimaYojana (PMSBY):
- The Scheme is available to people in the age group 18 to 70 years with a bank account.
- Aadhar would serve as the primary KYC for the bank account.
- The policy provides risk coverage of Rs. 2 lakhs for accidental death and complete disability, and Rs. 1 lakh for partial impairment.
- The annual premium of Rs. 12 (now increased to Rs. 20) would be taken from the account owner's bank account in one payment via the 'auto-debit' function.
- The plan is offered by Public Sector General Insurance Companies or any other General Insurance Company that is prepared to offer the product on identical conditions with the relevant permissions and has partnered with banks for this purpose.
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