Pradhan Mantri Jeevan Jyoti Bima Yojana (PMJJBY) and Pradhan Mantri Suraksha Bima Yojana (PMSBY) have had a lengthy history of adverse claims, thus in order to make them economically sustainable, their premium rates have been increased to Rs 1.25 per day for both schemes, which includes increasing PMJJBY from Rs. 330 to Rs. 436 and PMSBY from Rs. 12 to Rs. 20.
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The number of active subscribers enrolled under PMJJBY and PMSBY as on 31.3.2022 are 6.4 crore and 22 crore, respectively. Since the launch of the PMSBY, an amount of Rs 1,134 crore has been collected by the implementing insurers towards premium and claims of Rs. 2,513 crore have been paid under PMSBY as on 31.3.2022. Further, an amount of Rs. 9,737 crore has been collected by the implementing insurers towards premium and claims of Rs. 14,144 crore have been paid under PMJJBY as on 31.3.2022. Claims under both the Schemes have been deposited into the bank account of the beneficiaries through the DBT route.
Beneficiaries of those who died during COVID were contacted through outreach programmes and communications from the banks, and the claim forms and evidence of death were simplified. These and other initiatives were made to simplify the processes and expedite claims.
When the schemes were first started in 2015, the original approval said that the premium amount (Rs. 12/- for Pradhan Mantri Suraksha Bima Yojana and Rs. 330/- for Pradhan Mantri Jeevan Jyoti Bima Yojana) would be reviewed every year based on the number of claims. But since the programmes began seven years ago, there has been no change to the premium rates, even though insurers have lost money over and over again.
Upon examination of the claims experience of the schemes, IRDAI informed that while the claims ratio (percentage of amount of claims paid to premium earned) pertaining to PMJJBY and PMSBY, for the period up to 31st March, 2022, is 145.24 % and 221.61% respectively the combined ratio (sum of claims ratio and expense ratios) pertaining to PMJJBY and PMSBY, for the period up to 31st March, 2022, is 163.98 % and 254.71% respectively.
In view of the adverse claims experience of the schemes, PMJJBY and PMSBY and in order to make them viable for the implementing insurers the premium rates of PMJJBY and PMSBY have been revised w.e.f. 1.6.2022. This would also encourage other private insurers to come on board for implementing the schemes, thereby increasing the saturation of the schemes amongst the eligible target population, especially those who are underserved or unserved population of India.
In order to reach the goal of Prime Minister Shri Narendra Modi of making India a fully insured society, a goal has been set to increase coverage from 6.4 crore to 15 crore under PMJJBY and from 22 crore to 37 crore under PMSBY in the next five years. This will bring people closer to covering the eligible population through these two flagship schemes for social security.
