Life insurance cover under PMJJBY may be doubled

The Union finance ministry is working on a proposal to double the life insurance cover under its flagship financial inclusion insurance scheme, the Pradhan Mantri Jeevan Jyoti Bima Yojana (PMJJBY), said a senior government official.

- HARSH KUMAR

As part of this revamp, a revision in premiums is also under consideration. "Under the proposed plan, the life insurance cover under PMJJBY, which currently provides a one-year term life cover of ₹2 lakh for individuals aged 18-50 years, may be doubled to ₹4 lakh.

However, the annual premium, which is currently ₹436 per subscriber, could also be increased to ₹700-800," the official said. The official said the government was also considering expanding coverage under the Pradhan Mantri Suraksha Bima Yojana (PMSBY), details of which are yet to be finalised.

"The government is still in the process of gathering feedback and assessing the feasibility of the proposed enhancements," the official said. An email sent to the finance ministry remained unanswered till the time of going to press. The official added that the key concern being examined was the affordability of higher premiums, especially among low-income segments.