Moneycontrol Presented by Motilal Oswal
Days hours minutes
Nerolac
Presented by :

Co-Presenting Sponsor :

Capital Trade

Powered by :

Godrej Properties

Associate Sponsors :

Aegon Life
LIC Housing Finance
Indiabulls
DHFL

Co-Presenting Sponsor

Capital Trade

Associate Sponsors

  • Indiabulls
  • Aegon Life
  • LIC Housing Finance
  • DHFL
Jan 11, 2018 11:44 AM IST | Source: Moneycontrol.com

Govt accident cover plan gets 130 mn enrollments, term insurance gets 52 mn

Premiums for the accident and term insurance schemes are likely to be revised upwards in 2018

M Saraswathy @maamitalks

The Pradhan Mantri Suraksha Bima Yojana (PMSBY), the government’s personal accident insurance scheme, has crossed 130 million enrollments and had 132.57 million enrollments as on January 8, 2018.

Meanwhile, the term insurance scheme, Pradhan Mantri Jeevan Jyoti Bima Yojana (PMJJBY), has covered 52 million individuals for Rs 2 lakh each so far, according to data from the Department of Financial Services.

Launched in May 2015 as part of the Jan Suraksha Yojana by Prime Minister Narendra Modi, both insurance products are valid for one year each and can be auto-renewed through deduction of premium from the bank account of the person insured.

The premium for the accident insurance is Rs 12 per annum, while that for the term insurance is Rs 330 per annum.PMSBY

Source: Jan Suraksha Yojana website

PMSBY offers a renewable one year accidental death and disability cover of Rs 2 lakh to all subscribing bank account holders in the age group of 18 to 70 years. The cover period for those subscribing is June 1 of each year to May 31 of the subsequent year.

JJBY

Source: Jan Suraksha Yojana website

On the other hand, PMJJBY offers a renewable one year term life cover of Rs 2 lakh to all subscribing bank account holders in the age group of 18 to 50 years, covering death due' to any reason, including suicide and murder.

While the premiums are low, claims have been reported in both the schemes across the country. Fraudulent claims, including induced accidents and availing policies under names of dead people have been reported.

To prevent misuse of the products, the terms of the PMJJBY policy state that the insurance cover will not be available for death (other than due to accident) occurring during the first 45 days from the date of enrollment into the scheme (lien period), and in case of death (other than due to accident) during lien period, no claim would be admissible.

In the initial phases, while there was a much faster growth in the number of enrollments under this scheme, which was part of the Jan Suraksha Yojana (including Atal Pension Yojana), the pace has now come down.

Insurers said that this was primarily because participating banks, through which premiums are deducted, have not been actively pushing these products.

Ever since its launch in 2015, premiums for both products have remained unchanged. However, owing to the claims and to ensure a more sustainable business model, insurers have sought a hike in the premium for 2018. According to sources, the government is likely to comply with the request.

In the upcoming budget, it is anticipated that a new health insurance scheme with subsidised premiums will also be launched by the government.
Sections
Follow us on
Available On