Source: Mint
Context:
The Centre is considering raising the insurance cover under the flagship schemes:
- Pradhan Mantri Jeevan Jyoti Bima Yojana (PMJJBY)
- Pradhan Mantri Suraksha Bima Yojana (PMSBY)
- Objective: Make life and accident insurance more user-friendly, effective, and financially meaningful for subscribers.
Proposed Changes
- Increase in Coverage Limit
- Current PMJJBY & PMSBY coverage: ₹2 lakh.
- Proposed increase: Up to ₹5 lakh for subscribers willing to pay a higher premium.
- Premium Payment Options
- Individuals may be allowed to pay premiums upfront for at least three years.
- Expanded Distribution
- Use government financial inclusion channels, such as Digital Banking Units (DBUs), to broaden access.
Pradhan Mantri Jeevan Jyoti Bima Yojana (PMJJBY)
- Type: Life insurance scheme
- Ministry: Ministry of Finance, Department of Financial Services
- Launch Date: May 9, 2015
Eligibility:
- Individuals aged 18–50 years
- Must have a savings bank account
Coverage:
- Sum insured: ₹2 lakh (proposed to increase up to ₹5 lakh)
- Premium: ₹436 per annum
Objective:
- Provide financial protection to families of policyholders in case of death
- Enhance social security and financial inclusion
Key Features:
- Low-cost, easy-to-enrol life insurance
- Automatic renewal through bank account debit
- Wide reach through banks and financial institutions
Pradhan Mantri Suraksha Bima Yojana (PMSBY)
- Type: Accident insurance scheme
- Ministry: Ministry of Finance, Department of Financial Services
- Launch Date: May 9, 2015
Eligibility:
- Individuals aged 18–70 years
- Must have a bank account
Coverage:
- Sum insured: ₹2 lakh (proposed to increase up to ₹5 lakh)
- Premium: ₹20 per annum
Objective:
- Provide protection against accidental death or disability
- Promote financial security for low-cost accidental insurance
Key Features:
- Low premium, simple enrolment process
- Coverage includes death, permanent total disability, and partial permanent disability
- Renewal via auto-debit from bank account
