Auto Debit for Pradhan Mantri Jeevan Jyoti Bima Yojana (PMJJBY) and Pradhan Mantri Suraksha Bima Yojana (PMSBY) for Policy Renewals

The Government is likely to start large communication programmes for renewal of policies under the Pradhan Mantri Jeevan Jyoti Bima Yojana (PMJJBY) and Pradhan Mantri Suraksha Bima Yojana (PMSBY).The Finance Ministry is likely to soon ask life insurers and banks to ensure that policy renewals under both the schemes take place seamlessly, starting next month, through auto debit facility.

Gross enrolment to the PMJJBY has nearly doubled in the last two years to 5.33 crore. As many as 89,766 claims were paid in 2017-18 involving ₹1,795.32 crore. Similarly, gross enrolment in the PMSBY touched 13.48 crore in 2017-18. A total of 16,454 claims were paid involving ₹329.08 crore last fiscal. However, the insurance industry has been seeking a hike in premium on the grounds that insurers have been making 15-20 percent loss while settling claims.

Launched by Prime Minister Narendra Modi in May 2015, the PMJJBY provides life insurance cover of ₹2 lakh at an annual premium of ₹330 while the PMSBY provides accident insurance cover of ₹2 lakh at just ₹12 per year to all bank account holders.

Additionally, it will also ask participating banks and insurers to advise and educate customers on the benefits of the two schemes. However, a significant change in the design of schemes — with higher premium or a longer exclusion period, as has been sought by many in the insurance industry — is unlikely.

These schemes have been doing exceedingly well and have been a great source of benefit to the people. It is felt that at present, there is no need to change its design,” According to a Government source, adding that it has been one of the Government’s key financial inclusion programmes, along with opening bank accounts in the Pradhan Mantri Jan Dhan Yojana and direct transfer of subsidies.