Government may raise insurance cover under PMJJBY

MUMBAI: With the trio of Jan Suraksha schemes—Pradhan Mantri Jeevan Jyoti Bima Yojana (PMJJBY), Pradhan Mantri Suraksha Bima Yojana (PMSBY), and Atal Pension Yojana (APY)—completing 10 years this week, govt is looking at hiking the sum insured under these schemes.

“These three schemes are central to the country’s vision for financial inclusion, with 57 crore adults being brought under them. If everything goes right, we are also likely to revise certain benefits,” said M Nagaraju, secretary, Department of Financial Services.

Recently, a paper was circulated among insurers seeking implications of an increase in the sum insured to Rs 5 lakh. “We are doing a lot of scenario analysis—what is affordability, what is the cost, and what is the intermediation cost also. Once it is approved, we will know,” said Nagaraju.

Launched on May 9, 2015, the schemes extend social security to the unorganised sector. For Rs 436 a year, PMJJBY offers Rs 2 lakh life cover to those aged 18–50 via bank accounts; PMSBY, at just Rs 20 annually, provides the same for accidental death or total disability (with Rs 1 lakh for partial disability) up to age 70; and APY guarantees a pension of Rs 1,000–5,000 monthly from age 60 for entrants aged 18–40, with spousal inheritance and nominee fallback.
While these are social security schemes, the cover is provided on a commercial basis without any budgetary support.
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