Lok Sabha Question No. 3626 (UNSTARRED), answered on 2022-08-08
Subject: Premium of PMJJBY and PMSBY
Ministry: FINANCE
Asked by: A. Chellakumar

## GOVERNMENT OF INDIA MINISTRY OF FINANCE DEPARTMENT OF FINANCIAL SERVICES

## LOK SABHA UNSTARRED QUESTION NO. 3626

ANSWERED ON - 8.8.2022

## PREMIUM OF PMJJBY AND PMSBY

3626. DR. A. CHELLAKUMAR:

Will the Minister of FINANCE be pleased to state:

- (a) the reasons for increasing premium rates of Pradhan Mantri Jeevan Jyoti Bima Yojana (PMJJBY) and Pradhan Mantri Suraksha Bima Yojana (PMSBY) from Rs. 330 to Rs. 430 and Rs. 12 to Rs. 20 per annum, respectively;
- (b) whether  the  Ministry  has  calculated  the  impact  of  increased  premium  rates  on  the accessibility  of  these  schemes  and  if  so,  the  details  thereof  and  if  not,  the  reasons therefor;
- (c) the number of people living below the poverty line benefitting from the said two schemes during period from 2015 till date; and
- (d) the details of Non-Governmental insurance agencies that have implemented PMJJBY and PMSBY?

## ANSWER

THE MINISTER OF STATE IN THE MINISTRY OF FINANCE (DR. BHAGWAT KARAD)

(a) and (b): Pradhan Mantri Suraksha Bima Yojana (PMSBY) and Pradhan Mantri Jeevan Jyoti  Bima  Yojana  (PMJJBY)  were  launched  on  9.5.2015.  The  rules  of  the  schemes provided, inter-alia, that  the  premium  would  be  reviewed  based  on  annual  claims experience.

The Government constituted a Committee, headed by Member, Insurance Regulatory and Development  Authority  of  India  (IRDAI),  for  reviewing  premium  rates  for  PMJJBY  and PMSBY. The Committee, inter-alia, recommended upward revision of premium rates for PMSBY and PMJJBY in order to keep the schemes viable.

Subsequently, IRDAI, during its review of the schemes in 2022, also recommended increase in premium rates as the aggregate claim ratios for PMJJBY and PMSBY were more than 100% each, for the period up to 31.3.2022 since inception.

Keeping in view the recommendation of the Government constituted Committee and IRDAI, the premium rates of the schemes have been revised from Rs. 330 to Rs. 436 per annum per subscriber under PMJJBY and from Rs. 12 to Rs. 20 per annum per subscriber under PMSBY. This works out to a premium of only Rs 1.25 per day for both the schemes, making it one of the most affordable insurance covers, globally.

(c): PMJJBY and PMSBY are universal social security schemes that are open to all in the specified age groups and are not specific to people living below the poverty line or any other such specific group.

As  on  6.7.2022,  the  schemes  have  offered  benefits  by  way  of  1,00,255  claims  paid amounting to Rs.1,990.57 crore, and 5,93,316 claims paid amounting to Rs. 11,866.32 crore under PMSBY and PMJJBY respectively.

(d):  As  on  31.5.2022,  the  following  private  insurance  companies  were  implementing PMJJBY and PMSBY:

| Scheme   | Name of the insurer                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |
|----------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| PMJJBY   | (i) Bharti AXA Life Insurance Co. Ltd. (ii) Bajaj Allianz Life Insurance Co. Ltd. (iii)Canara HSBC Oriental Bank of Commerce Life Insurance Co. Ltd. (iv)Exide Life Insurance Co. Ltd. (v) HDFC Life Insurance Co. Ltd. (vi)ICICI Prudential Life Insurance Co. Ltd. (vii)Max Life Insurance Co. Ltd. (viii)PNB MetLife India Insurance Co. Ltd. (ix)SBI Life Insurance Co. Ltd. (x) Star Union Dai-ichi Life Insurance Co. Ltd. (xi)TATA AIA Life Insurance Co. Ltd (xii)IndiaFirst Life Insurance Co. Ltd |
| PMSBY    | (i) Bajaj Allianz General Insurance Co. Ltd (ii) Bharti AXA General Insurance Co. Ltd. (iii)Cholamandalam MS General Insurance Co. Ltd. (iv)Future Generali India Insurance C. Ltd. (v) ICICI Lombard General Insurance Co. Ltd. (vi)Tata AIG General Insurance Co. Ltd. (vii) Universal Sompo General Insurance Co. Ltd.                                                                                                                                                                                   |

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