For Pradhan Mantri Jeevan Jyoti Bima Yojana, now instead of Rs 330, the annual premium will be Rs 436. Whereas the premium amount of Pradhan Mantri Suraksha Bima Yojana has become Rs 20. Earlier it was Rs 12 per annum. Under both these schemes, an insurance cover of Rs 2 lakh is available.
New Delhi. The government has increased the premium of Prime Minister’s insurance schemes. For the first time, the premium of Pradhan Mantri Jeevan Jyoti Bima Yojana (PMJJBY) and Pradhan Mantri Suraksha Bima Yojana (PMSBY) has been increased. This increase will be applicable from June 1, 2022 i.e. tomorrow. Both these insurance schemes were launched by Prime Minister Narendra Modi 7 years ago in 2015.
For Pradhan Mantri Jeevan Jyoti Bima Yojana, now instead of Rs 330, the annual premium will be Rs 436. Whereas the premium amount of Pradhan Mantri Suraksha Bima Yojana has become Rs 20. Earlier it was Rs 12 per annum. Under both these schemes, an insurance cover of Rs 2 lakh is available.
Loss due to increase in claims
The Finance Ministry has given information about the increase in insurance premium. On behalf of the Ministry of Finance, it has been said that this increase has been done for the first time in view of more claims and less premium income of PMJJBY and PMSBY. Insurance companies were incurring losses due to increased claims. Hence the premium has been made more practical than before.
According to the data of insurance regulator IRDA, the claim ratio of PMJJBY as on March 31, 2022 was 145.24 per cent. While the claim ratio of PMSBY was 221.61 percent. Similarly, the combined ratio (total of claim ratio and expense ratio) stood at 163.98 per cent and 254.71 per cent respectively. Insurance companies have collected premium of Rs 9,737 crore and paid claims of Rs 14,144 crore under PMJJBY since its launch till March 31, 2022. At the same time, premium collection under PMSBY has been Rs 1,134 crore and claim payment has been Rs 2,513 crore.
Emphasis on increasing subscribers
The Finance Ministry expects that the increase in premium amount will attract private insurance companies towards it. With this, more and more people of the country will be able to come under its purview. As of March 31, 2022, the Pradhan Mantri Jeevan Jyoti Bima Yojana had 64 million subscribers. The government has set a target of increasing it to 15 crore subscribers in 5 years. Under this scheme, life insurance of Rs 2 lakh is done. While the Pradhan Mantri Suraksha Bima Yojana had 22 crore subscribers till 31 March. A target has been set to increase this to 37 crore customers. Under this, there is an accident insurance cover of Rs 2 lakh.
