The central government announced an increase in the premiums for the flagship insurance schemes, Pradhan Mantri Jeevan Jyoti Bima Yojana (PMJJBY) and Pradhan Mantri Suraksha Bima Yojana (PMSBY) in recent times. The government stated that the premium hike is necessary to strengthen the financial stability of both schemes and ensure their continuity.
The premium for PMJJBY has been increased by ₹1.25 per day. Previously, the annual premium was ₹330, but from January 1, 2025, it will be ₹436. Similarly, the annual premium for PMSBY, which was ₹12, has been raised to ₹20. The new premium rates for both schemes will come into effect from January 1, 2025.
If we look at the increased premiums of both schemes in terms of percentage, the premium for Pradhan Mantri Jeevan Jyoti Bima Yojana (PMJJBY) has been increased by 32%, and that of Pradhan Mantri Suraksha Bima Yojana (PMSBY) by 67%. The decision to raise the premiums was made in response to the claim ratios of both schemes. Since these schemes have a significant long-term impact and claims need to be settled promptly, the premium hike has been announced to ensure the smooth operation of both schemes.
How Much Money Came In, and How Much Went Out?
As of March 31, 2022, there were 6.4 crore active customers under PMJJBY, while 22 crore people were actively enrolled in PMSBY. Since its launch, Pradhan Mantri Suraksha Bima Yojana has received a total premium of ₹1,134 crore. In comparison, by March 31, 2022, ₹2,513 crore had been paid out in claims under the PMSBY scheme.
For Pradhan Mantri Jeevan Jyoti Bima Yojana, a premium of ₹9,737 crore has been collected, and ₹14,144 crore has been paid out in claims as of March 31, 2022. In both schemes, claim payments are made directly into the beneficiary’s account through Direct Benefit Transfer (DBT).
What Is PMSBY and PMJJBY?
The central government has introduced two schemes to provide Jeevan Suraksha Bima Yojana benefits to bank customers. The Social Security Scheme aims to offer financial support to common families, while the Pradhan Mantri Jeevan Jyoti Bima Yojana provides life insurance coverage of ₹2 lakh for individuals aged 18 to 50. Additionally, the accident insurance scheme offers ₹2 lakh coverage for individuals aged 18 to 70. Premiums for both schemes are auto-deducted from the consumer’s bank or post office account, and the claim amount is directly credited to the beneficiary’s account.
For PMSBY:
- Login to Your Bank Account: Access the bank’s online portal or app.
- Select PMSBY: Choose the PMSBY scheme under “Insurance.”
- Fill Out the Form: Enter personal and nominee details.
- Pay Premium: The annual premium will be auto-deducted from your account.
- Confirmation: Receive a confirmation message and policy details.
For PMJJBY:
- Login to Your Bank Account: Access the bank’s online portal or app.
- Select PMJJBY: Choose the PMJJBY option and review details.
- Fill Out the Form: Provide personal details and nominee information.
- Pay Premium: The premium is auto-deducted from your account.
- Confirmation: Receive a confirmation message and policy details.