Life insurance companies have pitched for a re-pricing of the government’s flagship Pradhan Mantri Jeevan Jyoti Beema Yojana.
According to calculations, the premium would have to be fixed at a little over Rs. 400 per annum per policy from the current Rs. 330.
Launched in 2015, the PMJJBY scheme provides a life cover of Rs. 2 lakh to people in the age group of 18 to 50 years (life cover up to age 55) having a savings bank account. The scheme is available for a one year period stretching from June 1 to May 31 and is renewable every year.
The government had chosen to keep the premium rate low in order to enable more people to take life cover and get social security.
However, insurers point out that the premium for the life insurance cover was fixed a long time ago and needs to be reviewed. Further, there has also been a rise in claims under the scheme following the Covid-19 pandemic.
“It is very, very important that the premiums for the scheme increase. It has not been hiked even once since the scheme was launched. It is not sustainable at the moment,” said an official with a life insurance company.