Disbursal of claims under the Pradhan Mantri Jeevan Jyoti Bima Yojana (PMJJBY), which offers death coverage due to any reason, shot up by 438 per cent in 2021-22 to 340,192, reflecting the higher number of deaths during the second wave of Covid.
In 2020-21, disbursal of claims under the scheme increased 49.2 per cent to 63,181, according to data released by the finance ministry on Tuesday.
Comparatively, enrollments under the scheme fell in FY22 by 20.6 per cent to 25.4 million after rising by 191 per cent to 32 million in FY21. In FY23, annual enrollment under the scheme reached its highest level at 33 million, growing 30 per cent.
The scheme marked its eighth anniversary on Tuesday, providing support to 664,000 families cumulatively by FY23, disbursing claims worth Rs 13,290 crore.
PMJJBY is a government-backed social security scheme launched in May 2015.
Also Read
Persons in the age group of 18-50 years having an individual bank or post office account are entitled to enrol under the scheme.
People who join the scheme before completing 50 years can continue to have the risk of life covered up to 55 years upon payment of the regular premium annually. This is for the policy years that run from June 1 to May 31.
Under the scheme, life cover of Rs 2 lakh is provided in case of death against a premium of Rs 436 per annum.
As on April 26, 2023, cumulative enrollments under the scheme have been more than 161.9 million and an amount of Rs 13,290.4 crore has been paid for 664,520 claims.
Over 44 per cent people enrolled under PMJJBY are Jan Dhan Yojana account holders. About 52 per cent enrolled under the scheme are women and 72 per cent belong to rural India.
Two other social security schemes — Pradhan Mantri Suraksha Bima Yojana (PMSBY) and Atal Pension Yojana — also marked their eighth anniversary on Tuesday.
The three schemes are dedicated to the welfare of citizens, recognising the need for securing human life from unforeseen eventualities and financial uncertainties.
According to the data, active enrollments under PMJJBY and PMSBY were at 83 million and 239 million, respectively, at the end of FY23. And, claims of about Rs 15,500 crore have been paid under both the schemes.
In a meeting held last month, the finance ministry discussed with banks a three-month-long saturation campaign of PMJJBY and PMSBY schemes launched on April 1, 2023.
It urged the states and Union Territories to increase enrollments under the schemes, considering the scope and size of the population in their respective states.
Earlier, Business Standard had reported that the finance ministry is likely to push public sector banks (PSBs) to increase the number of beneficiaries under the PMJJBY and PMSBY to 150 million and 350 million, respectively.
Finance minister Nirmala Sitharaman in a statement said, “These schemes aim to provide essential financial services to individuals from underprivileged backgrounds, thereby reducing their financial vulnerability.”