The Prime Minister’s Jeevan Jyoti Bima Yojana is presently accessible to all eligible account holders of such banks which have a tie-up with life insurance coverage firms, prepared to supply the insurance coverage protection on phrases as permitted by the federal government. Customers of the financial institution within the age group of 18 to 50 years are eligible to acquire the life insurance coverage cowl. The life cowl is for Rs 2 lakh for one yr and is renewable by deduction of the premium quantity from the SB account as per the standing mandate given by the life assured yearly earlier than May 31.
The life cowl below the scheme is Rs 2 lakh in case of dying of the account holder. The premium deductible below the scheme is Rs 436 each year presently. Premium since inception of the scheme in 2016 was solely Rs 330 each year. The premium has been revised attributable to hostile declare expertise in nearly all of the earlier years and the necessity to rationalise the identical to make it considerably viable for the insurers.
Value addition to the scheme
Taking a cue from the success of the scheme when it comes to acceptance and utility additional enchancment could also be instructed to the policymakers to make the scheme extra broad primarily based and inclusive. As per a Ministry of Finance announcement in December 2021 the variety of Jan Dhan Yojana financial institution accounts stood at 44.12 crore, 55% of which have been held by girls. Hence now the suitable time has arrived for worth addition to the scheme
The PM Suraksha Bima Yojana (PMSBY) which is a parallel scheme to supply Rs 2 lakh insurance coverage cowl in case of dying or sure incapacity by chance needs to be built-in to the PMJJBY in order that in instances of dying of the account holder by chance the dependents get further monetary assist. Death by chance is a sudden episode destabilising the dependants in a giant method, therefore a wider umbrella of monetary safety is required for them to come back to phrases following the tragedy. The revised premium of Rs 20 below the PMSBY could be added to the yearly premium of Rs 436 for the PMJJBY. This facility will widen the safety cowl with none problem or substantial development in premium.
Critical Illness Rider
The success of the scheme thus far encourages me to recommend that Critical Illness Rider be additionally launched on a small scale to offer the style of a complete monetary safety. The current scheme being a time period scheme solely the life assured would himself by no means expertise the promised advantages however a important sickness rider does give the policyholder monetary assist throughout his lifetime.
The insurers additionally should come ahead with some mini important well being rider to introduce parts of seen advantages. All such inclusion will give extra confidence to the insuring public within the splendidly modern scheme of the PM. Fintech should be exploited absolutely to maintain prices low and to supply greatest service to make the idea a win-win association for all.
The author is former MD & CEO, Star Union Dai-ichi Life
Source: www.financialexpress.com”