The Business Bytes
TBB BUREAU
NEW DELHI, MAY 31, 2022
The government on Tuesday raised the premium for its flagship insurance schemes — Pradhan Mantri Jeevan Jyoti Bima Yojana (PMJJBY) and Pradhan Mantri Suraksha Bima Yojana (PMSBY) in order to make them economically viable.
The premium rate of PMJJBY has been revised upward to Rs 1.25 per day, translating into an increase from Rs 330 to Rs 436 annually.
The annual premium for PMSBY has been hiked from Rs 12 to Rs 20, an official statement said.
The new premium rates are effective from June 1, 2022.
The decision has been taken in view of the long-standing adverse claims experience of the schemes, it added.
The number of active subscribers enrolled under PMJJBY and PMSBY as on March 31, 2022 are 6.4 crore and 22 crore, respectively. Since the launch of the PMSBY, an amount of Rs 1,134 crore has been collected by the implementing insurers towards premium and claims of Rs. 2,513 crore have been paid under PMSBY as on March 31, 2022. Further, an amount of Rs. 9,737 crore has been collected by the implementing insurers towards premium and claims of Rs. 14,144 crore have been paid under PMJJBY as on March 31, 2022. Claims under both the Schemes have been deposited into the bank account of the beneficiaries through the DBT route.
The transmission of benefits through these schemes were closely monitored during COVID and a host of measures were taken to simplify the procedures and expedite claims, including, outreach programmes and messages from the banks to reach out to beneficiaries of the people who died during COVID, simplifying claim form and proofs of death and many more.
It may be recalled that the original approval at the time of launch of the schemes in 2015 provided for an annual review of the premium amount (Rs. 12 for Pradhan Mantri Suraksha Bima Yojana and Rs. 330 for Pradhan Mantri Jeevan Jyoti Bima Yojana) based on the claims experience. However, no revision of premium rates was made in the last seven years since inception of the schemes in spite of recurring losses to the insurers.
