In order to facilitate greater participation of insurers in Pradhan Mantri Jeevan Jyoti Bima Yojana (PMJJBY), the insurance regulator has reduced the capital to be held by insurers offering PMJJBY by about 50%.
The Insurance Regulatory and Development Authority of India (Irdai) said in a statement, “This move will enable life insurance companies to offer more policies under the scheme and provide financial protection to the grassroots of the Indian population through life insurance.” “
IRDA said the move would complement the recent revision of premium rates by the government for two flagship schemes – PMJJBY and PMSBY (Pradhan Mantri Suraksha Bima Yojana) to make these schemes economically viable.
The easing of capital requirement by IRDA will accelerate the penetration of life insurance in India, and support life insurers in achieving the target set by the government.
PMJJBY provides life insurance cover 2 lakh in case of death due to any reason of persons in the age group of 18-50 years having bank or post office account, who give their consent to include or enable auto-debit of premium.
The premium rate of PMJJBY has been revised upwards 1.25 per day, translates into increments from 330 to 436 annually effective 1 June.
The number of active subscribers enrolled under PMJJBY as on March 31, 2022 was 6.4 crore.
an amount of Rs 9,737 crore has been collected by the implementing insurers towards premium and claims of 14,144 crore has been paid under PMJJBY till March 31, 2022.