PMJJBY policyholders eligible for LIC IPO at discount

Subscribers of Pradhan Mantri Jeevan Jyoti Bima Yojana (PMJJBY) are eligible for LIC initial public offering at a discount, Chairman of insurance company M R Kumar said.

“PMJJBY is part of that and reservation will be there (for the policyholders),” Kumar said in an interaction with the media.

Launched in 2015, PMJJBY offers a renewable one year life cover of Rs 2 lakh to all savings bank account holders in the age group of 18-50 years, covering death due to any reason, for a premium of Rs 330 per annum per subscriber.

This government scheme is offered or administered through LIC. As per the Draft Red Herring Prospectus (DRHP) filed last week, the maximum bid amount under the Policyholder Reservation Portion by an eligible policyholder would not exceed Rs 2,00,000 (net of policyholder discount).

It further said policyholders having one or more policies of LIC as on the date of DRHP and bid/offer opening date and who are residents of India would be eligible to apply in this offer, under the Policyholder Reservation Portion.