Premium of Pradhan Mantri Jeevan Jyoti Bima Yojana and Suraksha Bima Yojana increased

The Center on Tuesday increased the premium of its flagship insurance schemes Pradhan Mantri Jeevan Jyoti Bima Yojana (PMJJBY) and Pradhan Mantri Suraksha Bima Yojana (PMSBY). The premium for PMJJBY has been increased by 33 percent. Now the premium of the scheme has been increased from Rs 330 to Rs 436 per annum from June 1. At the same time, the premium of PMSBY has been increased by 67 percent to Rs 20 per annum.

The government has said that this decision has been taken due to increase in the number of claims in both the schemes in the recent past. As on 31 March 2022, 6.4 crore active members were associated with PMJJBY and 22 crore active members were associated with PMSBY. 

During the Corona wave, the benefits of these insurance schemes were closely monitored and several steps were taken to ensure that people do not face any kind of inconvenience in claiming. The premiums of both these insurance plans have not changed since 2015, despite persistent losses. According to IRDAI, the claim ratio (claims against premium earned) of Pradhan Mantri Jeevan Jyoti Bima Yojana and Pradhan Mantri Suraksha Bima Yojana stood at 145.24 percent and 221.61 percent, respectively, for the period ended March 31, 2022.

The government has set a target of increasing the number of PMJJBY beneficiaries to 15 crore from the current 6.4 crore in the next five years. Similarly, a target has been set to increase the number of PMSBY beneficiaries to 37 crores.