Guwahati: Premium rates for the Pradhan Mantri Jeevan Jyoti Bima Yojana (PMJJBY) and Pradhan Mantri Suraksha Bima Yojana (PMSBY) have been raised for the first time since the schemes' inception, despite continuous losses to insurers.

The premium rates for both plans have been amended, with PMJJBY increasing from Rs. 330 to Rs. 436 and PMSBY decreasing from Rs. 12 to Rs. 20.

This will also encourage additional private insurers to join in on the scheme's implementation, boosting the scheme's saturation among the eligible target population, particularly the underserved or unserved people of India.

As on 31.3.2022, the number of active subscribers enrolled in PMJJBY and PMSBY was 6.4 crore and 22 crores, respectively. Since the inception of the PMSBY, the implementing insurers have received Rs 1,134 crore in premiums, and claims totaling Rs 2,513 crore have been paid under the PMSBY as of 31.3.2022.

Furthermore, as of 31.3.2022, the implementing insurers had collected Rs. 9,737 crore in premiums and had paid Rs. 14,144 crore in claims under PMJJBY. Claims under both Schemes have been put into the recipients' bank accounts using the DBT mechanism.

During COVID, the transmission of benefits through these schemes was closely monitored, and a variety of measures were implemented to simplify procedures and expedite claims, such as outreach programmes and messages from banks to reach out to beneficiaries of people who died during COVID, simplifying claim forms and proofs of death, and many others.

It should be noted that the initial sanction granted at the time of the schemes' start in 2015 allowed for an annual review of the premium amount (Rs. 12/- for Pradhan Mantri Suraksha Bima Yojana and Rs. 330/- for Pradhan Mantri Jeevan Jyoti Bima Yojana) based on claims experience.

However, IRDAI informed that while the claims ratio (percentage of amount of claims paid to premium earned) for PMJJBY and PMSBY is 145.24 percent and 221.61 percent respectively for the period up to 31st March, 2022, the combined ratio (sum of claims ratio and expense ratios) for PMJJBY and PMSBY is 163.98 percent and 254.71 percent respectively for the period up to 31st March, 2022.

In the next five years, we hope to enhance coverage from 6.4 crore to 15 crore under PMJJBY and from 22 crore to 37 crore under PMSBY, bringing us closer to covering the eligible population through these two key social security systems.