According to reports, the finance ministry has kept FY22's annual premium for PradhanMantri Suraksha Bima Yojana and PradhanMantri Jeevan Jioti Bima Yojana (PMJJBY) unchanged. This is a move that will be beneficial for customers.This year, the annual premium of Rs.330 for a life policy under PMJJBY or Rs 12.2 for a policy for disability and accidental death under PMSBY will be continued. You can renew your annual policy by June 31st.People familiar with the matter stated that insurers wanted a rise in premiums up to 20%, but it was rejected due to income losses and pay cuts caused by the pandemic.Any increase would have directly affected customers, and this was not considered appropriate during COVID-19. A spokesperson said.Indian government term and accident insurance are the most affordable products on the Indian market. A regular term plan with the same Rs 2 lakh coverage can be as expensive at Rs 900-1,999 per annum. Accident insurance can cost between Rs 600-700.The schemes were launched in May 2015. Banks immediately focused on enrolling policyholders and were able in five months to bring 120 million customers aboard.Although enrollment stagnated in FY19/FY20, it picked up speed with the COVID-19 epidemic. The PMJBY has 103 million subscribers, while the PMSBY has 234 million subscribers.Also, read: Claims made under PMJJBY zoomAs of June 5, PMJJBY had paid out 4,65,000 claims, which were valued at Rs 9,307 cr. The disposal rate is 99 percent since the COVID-19 epidemic in April. 1,20,000 deaths claims totaling Rs 2,403 crore were paid.PMSBY paid out Rs 1,629 crore in total claims as of May 31, 2021.Are insurers likely to be sued?Moneycontrol spoke to Moneycontrol under condition of anonymity to explain that insurers will be responsible for the decision to hold premium rates. This is a sensitive matter and is currently under regulatory supervision.While claims are rising, premiums remain stagnant. According to an actuarial chief in a life insurance company, this could cause an increase in claims losses.This could lead to some general insurance companies being less exposed.A head of underwriting for a mid-sized general insurer company statedInsurers that cannot manage claims costs will eventually have to close because the pricing isn't sustainable.On June 5, Nirmala Sitharaman, Finance Minister, directed insurance companies to process PMJJBY/PMSBY claims within seven days. These claims were previously handled by the insurers within 30 days.A minister of finance also stated that there should be an end-to-end digitization of claim settlement between banks and insurers.
