Premium charges of Pradhan Mantri Jeevan Jyoti Bima Yojana (PMJJBY) and Pradhan Mantri Suraksha Bima Yojana (PMSBY) have been revised upwards by the federal government. For PMJJBY, the premium has been elevated from Rs. 330 to Rs. 436 whereas for PMSBY, the rise in premium is from Rs. 12 to Rs. 20. The premium charges of the schemes have been revised by making it Rs 1.25 per day premium for each schemes.
PMJJBY is a one-year life insurance coverage scheme for a life cowl of Rs. 2 lakh ( time period insurance coverage), renewable from 12 months to 12 months, providing protection for demise because of any cause and is offered to folks within the age group of 18 to 50 years ( life cowl as much as age 55) having a financial savings checking account who give their consent to hitch and allow auto-debit. The cowl is for a one-year interval, beginning June 1 to May 31.
Pradhan Mantri Suraksha Bima Yojana (PMSBY) is a scheme providing insurance coverage in opposition to unintentional demise and incapacity. It is a one-year cowl and could also be renewed every year by the person. For those that had already enrolled for the PMSBY scheme, the premium is deducted from the checking account of the insured by way of an ‘auto-debit’ facility in a single installment. Your checking account will sometimes get debited between May 25 and May 31 of every 12 months.
From June 1, 2022, the premium for Pradhan Mantri Jeevan Jyoti Bima Yojana (PMJJBY) and Pradhan Mantri Suraksha Bima Yojana (PMSBY) will stand at Rs 436 and Rs 20 respectively.
The variety of energetic subscribers enrolled below PMJJBY and PMSBY as on 31.3.2022 are 6.4 crore and 22 crore, respectively. Since the launch of the PMSBY, an quantity of Rs 1,134 crore has been collected by the implementing insurers in the direction of premium and claims of Rs. 2,513 crore have been paid below PMSBY as on 31.3.2022.
Further, an quantity of Rs. 9,737 crore has been collected by the implementing insurers in the direction of premium and claims of Rs. 14,144 crore have been paid below PMJJBY as on 31.3.2022.
Claims below each the Schemes have been deposited into the checking account of the beneficiaries by way of the DBT route.
At the time of launch of the schemes in 2015 it was determined for an annual assessment of the premium quantity (Rs. 12 for Pradhan Mantri Suraksha Bima Yojana and Rs. 330 for Pradhan Mantri Jeevan Jyoti Bima Yojana) primarily based on the claims expertise.
However, no revision of premium charges was made within the final 7 years since inception of the schemes regardless of recurring losses to the insurers.
Upon examination of the claims expertise of the schemes, IRDAI knowledgeable that whereas the claims ratio (proportion of quantity of claims paid to premium earned) pertaining to PMJJBY and PMSBY, for the interval as much as thirty first March, 2022, is 145.24 % and 221.61% respectively the mixed ratio (sum of claims ratio and expense ratios) pertaining to PMJJBY and PMSBY, for the interval as much as thirty first March, 2022, is 163.98 % and 254.71% respectively.
In view of the opposed claims expertise of the schemes, PMJJBY and PMSBY and with a view to make them viable for the implementing insurers the premium charges of PMJJBY and PMSBY have been revised w.e.f. 1.6.2022.