paragraph

The government on May 31, 2022, raised the premium for its flagship insurance schemes -- Pradhan Mantri Jeevan Jyoti Bima Yojana (PMJJBY) and Pradhan Mantri Suraksha Bima Yojana (PMSBY) in order to make them economically viable. <a href="https://economictimes.indiatimes.com/news/india/centre-raises-premium-for-flagship-insurance-schemes-pmjjby-pmsby/articleshow/91921076.cms" target="_blank">A report in the Economic Times</a> highlighted a rise in the premium rate of PMJJBY to ₹1.25 per day, translating into an increase from ₹330 to ₹436 every year.

The annual premium for PMSBY has been hiked from ₹12 to ₹20, an official statement said. The new premium rates are effective from June 1, 2022. In percentage terms, the premium increase is 32 per cent in the case of PMJJBY and 67 per cent for PMSBY. The decision has been taken in view of the long-standing adverse claims experience of the schemes, it added.

The number of active subscribers enrolled under PMJJBY and PMSBY as on March 31, 2022, were 6.4 crore and 22 crores, respectively. Since the launch of the PMSBY, ₹1,134 crore has been collected by the implementing insurers towards premium and claims of ₹2,513 crore have been paid as on March 31, 2022.

Further, an amount of ₹9,737 crore has been collected by the implementing insurers towards premium and claims of ₹14,144 crore have been paid under PMJJBY as on March 31, 2022. Claims under both schemes have been deposited into the bank accounts of the beneficiaries through the direct benefit transfer (DBT) route.

“However, no revision of premium rates was made in the last seven years since the inception of the schemes in spite of recurring losses to the insurers,” it said.

Upon examination of the claims experience of the schemes, it said, IRDAI informed that while the claims ratio (percentage of the claim amounts paid to the premium earned) pertaining to PMJJBY and PMSBY, for the period up to March 31, 2022, was 145.24 per cent and 221.61 per cent respectively, the combined ratio (sum of claims ratio and expense ratios) pertaining to PMJJBY and PMSBY for the period stood at 163.98 per cent and 254.71 per cent.

Revised rates would also encourage other private insurers to come on board for implementing the schemes, thereby increasing the saturation of the schemes among the eligible target population, especially those who are underserved or unserved.

Premiums for flagship PMJJBY and PMSBY insurance schemes hiked

Government flagship insurance schemes witness a rise in premium inflows by March 31, 2022.

Is 'sum insured' different from 'sum assured'?

April 2022 data highlight an increased demand for bank loans across all sectors

What are the benefits of reverse mortgage?

This new EPF rules comes in effect on June 1

What is masked Aadhaar and how to download it online

How fraudsters use cryptos to trick investors & buyers alike

These ELSS funds gave as high as 33 percent return in past three years; Should you invest? 

How to claim income tax relief under Section 89(1) on income from arrears

Sundaram Home Finance revises interest rates on deposits; get up to 6.55%

Axis Securities sees a 20% upside in this Maharatna stock

Coal India reported a consolidated net profit of ₹6,692.94 crore in the March quarter, up 45.91 per cent year on year (YoY) from ₹4,586.78 crore in the same quarter last year.

Nippon MF again stops inflow into overseas funds: Report

Discontinuation comes within a week of resuming subscription in overseas securities

Bajaj Auto's share buyback: What is a stock buyback, how does it work and should you tender your shares? 

A stock buyback, or share repurchase, is when a company repurchases its own stock. Companies typically purchase shares at a premium to the market price. Following the buyback, the total number of outstanding shares will get reduced.

Centre, RBI brace for more rupee volatility: Report

Rupee's weakness has also added to the inflation. The government and the RBI are reported to have discussed the rupee’s depreciation in the past week.

<ul><li>Rupee's weakness has also added to the inflation. The government and the RBI are reported to have discussed the rupee’s depreciation in the past week.</li></ul>

Credit Suisse finds Nifty expensive; sees China outperforming: Report

Credit Suisse noted that the Chinese stock market is expected to outperform the rest of Asia for the next two quarters as money is expected to rotate from Southeast Asian countries like Thailand and Vietnam, which are relatively expensive, to China.