For the first time in seven years, premium for government-backed insurance schemes was raised. PMJJBY’s premium was raised from ₹330 to ₹436 per year effective June 1, and the PMSBY’s premium rose from ₹12 to ₹20.
Besides this, the insurance regulator Insurance Regulatory and Development Authority of India (Irdai) slashed the capital required by insurance companies which offer policies under Pradhan Mantri Jeevan Jyoti Bima Yojana (PMJJBY) by almost 50 per cent. These steps were taken to enable insurers to offer more policies under the scheme.
And this is perhaps one of the rare occasions where insurance regulator is providing such a flexibility to insurance providers.
Here we give out more details on these insurance schemes?
Pradhan Mantri Jeevan Jyoti Bima Yojana: The PMJJBY is available to people in the age group of 18 to 50 years who have a bank account who give their consent to enable auto-debit. The life cover of ₹2 lakhs is given for one year period between June 1 to May 31.
The premium has now been raised to ₹436 per annum which is to be auto-debited in one instalment from the subscriber’s bank account as per the option given by him on or before May 31 of each financial year during the scheme’s duration.
The scheme is being offered by Life Insurance Corporation and all other life insurers who are willing to offer the product on similar terms with necessary approvals and tie up with banks for this purpose.
Pradhan Mantri Suraksha Bima Yojana (PMSBY): The scheme is available to policyholders in the age group 18 to 70 years who have a bank account and who give their consent to enable auto-debit on or before May 31 for the coverage period June 1 to May 31 on an annual renewal basis.
The risk coverage that the scheme offers is ₹2 lakh for accidental death and full disability. In case of partial disability, risk coverage is ₹one lakh.
The small premium amounting to ₹20 per annum is deducted from the account holder’s bank account through auto-debit facility.
The scheme is being offered by public sector general insurance companies or any other general insurance company which is willing to offer the product on similar terms.
The big insurers offering policies under the PMJJBY scheme include Life Insurance Corporation, IndiaFirst Life Insurance and SBI Life.
