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Govt of India hikes Premium Rates for Insurance Premiums

Published on June 02, 2022
Current Context: Recently the government has hiked the insurance premium rates for Pradhan Mantri Jeevan Jyoti Bima Yojana (PMJJBY) and Pradhan Mantri Suraksha Bima Yojana (PMSBY). It will get effective from June 1, 2022.
Govt of India hikes Premium Rates for Insurance Premiums
  • First time in 7 years of launch the premium rates for both schemes has been increased i.e for PMJJBY being increased from Rs. 330 to Rs. 436 and PMSBY being increased from Rs. 12 to Rs. 20.
  • The decision to increase has come into effect after the review of the schemes and it was shown that the claims ratio is higher for PMJJBY and PMSBY was 145.24% and 221.61%.
  • The hike in premium would make the schemes sustainable and encourage other private insurers to come on board for implementing PMJJBY and PMSBY.
  • The Centre has also set a target to increase insurance coverage from 64 million to 150 million under PMJJBY and from 220 million to 370 million under PMSBY.
  • The Pradhan Mantri Jeevan Jyoti Bima Yojana is a one-year, renewable life insurance scheme that provides death coverage.PMJJBY provides life insurance cover worth Rs 2 lakh to all account holders aged 18-50 years.
  • The Pradhan Mantri Suraksha Bima Yojana is a type of personal accident insurance that protects you from death or disability as a result of an accident. The insurance coverage is for a year. The scheme covers a total sum insured of Rs 2 lakh.

Question:

Q.1 The Pradhan Mantri Jeevan Jyoti Bima Yojana is a type of _______?
a. Pension Scheme
b. Loan Scheme
c. Life Insurance Scheme
d. Saving Scheme
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