FM calls for faster claim settlement under PMJJBY in meeting with insurers

Nirmala Sitharaman stressed the importance of streamlining the process and documentation requirements

Nirmala Sitharaman on Saturday held a review meeting with the heads of insurance companies through Video conferencing to review the progress made under the Pradhan Mantri Garib Kalyan Package (PMGKP) Insurance Scheme for health workers fighting Covid-19. 

The Finance Minister asked insurers accelerate the disbursement of pending claims under the Pradhan Mantri Jeevan Jyoti Bima Yojana (PMJJBY) during the pandemic and stressed the importance of streamlining the process and documentation requirements.

During the review, Sitharaman observed that under the PMGKP scheme, a total of 419 claims have been paid till date, amounting to Rs 209.5 crore disbursed in the account of their nominees. 

To address the issue of delays arising out of States sending documents, Sitharaman said that a new system has been put in place whereby a simple certificate from the District Magistrate (DM) and endorsed by the nodal state health authority will be sufficient to process these claims. 

FM also directed the States to take up Covid claims of health workers on priority and make maximum use of this simplified mechanism that has been put in place.

Sitharaman further observed that under PMJJBY, a total of 465,000 claims have been paid of value Rs 9,307 crore and since the beginning of the pandemic i.e., April 1 2020 onwards till date, 120,000 claims have been paid amounting to Rs 2,403 crore, at a disposal rate of 99 per cent.

"Insurance company officials should continue being sympathetic while providing services to nominees of deceased policy holders, especially during pandemic period," Sitharaman said.

PMJJBY was launched in 2015 to provide life and accidental insurance covers respectively of Rs 2 lakh each to all beneficiaries enrolled under the schemes through their bank with annual premium of only Rs 330.