Insurance companies are finding it tough to compete with the governments ultra-cheap scheme, Pradhan Mantri Jeevan Jyoti Bima Yojana, as they unable to match the state at the lower end of the life cover business.
Under the scheme, the government offers life insurance cover of Rs. 2 lakh for a premium of Rs. 330 annually to savings account holders aged 18 to 50 in participating banks. Entry-level plans of other insurers offer higher cover and cost much more.