The Finance Ministry has given its approval for hiking the premium rates of two flagship social security schemes—the Pradhan Mantri Jeevan Jyoti Bima Yojana (PMJJBY) and Pradhan Mantri Suraksha Bima Yojana (PMSBY).
The rate revision —first in seven years since their inception in 2015– is being undertaken to make these two schemes economically viable.
From June 1 this year, the premium rates of the schemes have been revised by making it ₹1.25 per day premium for both schemes that includes revising PMJJBY from ₹330 to ₹436 and PMSBY from ₹12 to ₹20.
PMJJBY and PMSBY New Premium Rates
|Insurance||Old Rate (Rs.)||New Rate (Rs.)|
The number of active subscribers enrolled under PMJJBY as on March 31, 2022 is 6.4 crore and in PMSBY 22 crore. Since the launch of the PMSBY, ₹1,134 crore has been collected by insurers towards premium and claims of ₹2,513 crore have been paid. Under PMJJBY, , ₹9,737 crore has been collected by the insurers towards premium and claims of ₹14,144 crore have been paid. Claims under both the schemes have been deposited directly into the bank account of the beneficiaries.
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 per cent and 221.61 per cent respectively the combined ratio (sum of claims ratio and expense ratios) is 163.98 per cent and 254.71 per cent, respectively.