After the latest hike within the premium fee, the Insurance Regulatory and Development Authority of India (Irdai) on Friday relaxed capital requirement norms considerably for insurers to encourage their participation within the authorities’s flagship programme Pradhan Mantri Jeevan Jyoti Bima Yojana (PMJJBY).
The regulator has decreased the capital required to be held by insurers providing PMJJBY by virtually 50%. This transfer will allow life insurers to supply extra insurance policies beneath the scheme, and supply monetary safety to the underside of the pyramid of the Indian inhabitants via life insurance coverage, Irdai stated in a press release. The easing of capital necessities by Irdai will speed up the penetration of life insurance coverage in India and can assist the life insurers in reaching the goal set by the federal government.
The authorities has just lately hiked the premium charges for the 2 flagship schemes – PMJJBY and Pradhan Mantri Suraksha Bima Yojana (PMSBY) — to make these schemes economically viable.
The premium fee of PMJJBY has been revised upward to Rs 1.25 per day, translating into a rise from Rs 330 to Rs 436 yearly efficient June 1. The variety of lively subscribers enrolled beneath the PMJJBY was 64 million as of March 31, 2022.
An quantity of Rs 9,737 crore has been collected by the implementing insurers in direction of premium and claims of Rs 14,144 crore have been paid beneath the PMJJBY as of March 31, 2022.
The PMJJBY provides life insurance coverage cowl of Rs 2 lakh in case of dying because of any purpose to individuals within the age group of 18-50 years having a financial institution or submit workplace account, who give their consent to affix or allow auto-debit of premium.