Quarterly premium likely for flagship insurance scheme

In a major push to its financial inclusion programme, the government is looking to revamp its flagship life insurance scheme with an option to stagger the Rs 330 premium quarterly to make it more affordable.

This comes in the wake of the finance ministry directing the state-run banks and public sector insurers to attain full renewal in accident insurance and 95% renewal in life insurance schemes.

The ministry has noted in its directive that the aim is to enrol all Jan Dhan account holders under these two insurance schemes. Banks were further asked to make subscribers aware of the need to keep sufficient balance in their bank account towards the renewal of premium. “Based on our feedback, we are now looking at quarterly payments in Pradhan Mantri Jeevan Jyoti Bima Yojana (PMJJBY).

The scheme is primarily intended towards weaker sections of the society who may not be in a position to pay the whole premium at one go,” said a government official aware of the developments. Under the PMJJBY scheme, life cover of Rs.2 lakh is available for a one-year period at a premium of Rs 330 and is renewable every year.