Irdai eases capital requirement for insurers to offer PMJJBY schemes

PMJJBY provides life insurance cover worth Rs 2 lakh to all account holders aged 18-50 years

The Insurance Regulatory and Development Authority of India (Irdai) has reduced the capital required by insurance companies offering policies under Pradhan Mantri Jeevan Jyoti Bima Yojana (PMJJBY) by almost 50 per cent.

This is to enable insurers to offer more policies under the scheme, and provide financial security to the bottom-of-the-pyramid segment in India.

This is, perhaps, one of the first times that the insurance regulator is providing such a dispensation to insurance companies.

“In order to facilitate more participation of insurers under PMJJBY, Irdai has reduced the capital required to be held by insurers offering PMJJBY, by almost 50 per cent,” Irdai