Insurance schemes under the Pradhan Mantri Jan Suraksha Yojana will not see any premium increase this financial year.
While pure-term insurance and personal accident policies under the scheme have seen claims being reported and paid, the price of the cover has not been revised upwards.
Insurers expecting some upward movement due to claims will now have to provide the cover at the same cost. Besides, a pension scheme (Atal Pension Yojana), the scheme provides term insurance and an accident insurance scheme — Pradhan Mantri Jeevan Jyoti Bima Yojana (PMJJBY) and Pradhan Mantri Suraksha Bima Yojana (PMSBY). Eleven months since launch, the schemes have sold almost 124 million policies.
“Volumes have been big and, hence, the sector has faced claims as well. Some premium increase was expected but we are told there would not be any in this financial year,” said a senior general insurance executive. There could, he said, be some revisions from FY18, based on data. The plans have a cover of Rs 2 lakh each, with a premium of only Rs 12 a year for accident insurance and Rs 330 for the life product. Not all segment entities in the private sector have become a part of this, as the cover cost is low and servicing costs are high. Of the Rs 12, the premium given to the insurer per annum is Rs 10. Apart from this, Rs 1 is paid per year as reimbursement of expenses to the intermediary (business correspondent, agent) and another Rs 1 goes for reimbursement of administrative expenses to the bank in question.
India's wealthy opt for term insurance policies worth Rs 5-20 crore: Report
Read More
