Government revises premium rates of flagship PM Jeevan Jyoti Bima Yojana, PM Suraksha Bima Yojana from 1 June; Rs 436 for PMJJBY, Rs 20 for PMSBY

The Government has increased the premium rates of its flagship schemes Pradhan Mantri Jeevan Jyoti Bima Yojana (PMJJBY) and Pradhan Mantri Suraksha Bima Yojana (PMSBY) with effect from 1 June. The premium rates of the schemes have been revised by making it Rs 1.25 per day premium for both schemes that includes revising PMJJBY from Rs 330 to Rs 436 and PMSBY from Rs 12 to Rs 20.   

The decision has been taken in view of the long-standing adverse claims experience of the PMJJBY and PMSBY schemes and to make them economically viable, the release said. It is the first revision in premium rates in the last seven years since inception of the schemes in spite of recurring losses to the insurers.

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.  

Moreover, 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.

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The original approval at the time of launch of the schemes in 2015 provided for an annual review of the premium amount was based on the claims experience. 

As per IRDAI, the claims ratio (percentage of amount of claims paid to premium earned) pertaining to PMJJBY and PMSBY for the period up to 31 March, 2022 was 145.24 per cent and 221.61 per cent respectively. As for the combined ratio (sum of claims ratio and expense ratios) pertaining to PMJJBY and PMSBY, it was 163.98 per cent and 254.71 per cent respectively.

"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," th government release said.

The  governemt aims to increase the coverage from 6.4 crore to 15 crore under PMJJBY and from 22 crore to 37 crore under PMSBY in the next five years.