The annual premium of Rs 12 and Rs 330 for personal accident and life insurance will continue
The life insurance and personal accident schemes under the Pradhan Mantri Jan Suraksha Yojana will not see any price increases in FY20. Sources said the PM Jeevan Jyoti Bima Yojana (term plan) and PM Suraksha Bima Yojana (personal accident plan) will continue with the same annual premium of Rs 330 and Rs 12 this financial year.
The personal accident scheme Suraksha Bima and term insurance scheme Jeevan Jyoti Bima, launched in May 2015, have a sum assured of Rs 2 lakh each and need renewal after a year.
"To encourage access to low-cost insurance products, prices are being kept unchanged. Since insurance penetration in India is less than 5 percent, these products will help serve the purpose of getting a basic cover for dealing with untoward incidents," said an official.
In the period immediately after the launch of these schemes, banks were focusing on enrolling more policyholders aggressively. In the first five months of the schemes' launch, around 120 million policyholders were enrolled.
The total enrollments for the two insurance schemes still remain high due to their auto-renewal feature, which allows the premium to be debited straight from the policyholder's bank account on an annual basis.
Several insurers had sought an increase in the premium rates. This was to ensure that the product sale is sustainable, especially because the claims ratios have been high.As of FY19, almost Rs 3,400 crore worth claims have been paid by the insurance companies. However, insurers have also reported a series of fraudulent claims filed under this programme.The Great Diwali Discount!
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