More than 89% of claims under the Pradhan Mantri Jeevan Jyoti Bima Yojana (PMJJBY), which provides a life insurance cover of Rs 2 lakh, were settled in the first year of the launch of the scheme, which is considered satisfactory by insurance sector standards.
According to the latest figures of the Department of Financial Services, 89.2% of the total 28,218 claims were settled as on 26 May. Out of this, payment was made to 24,730 claimants, while 454 claims were rejected. The rest of the claims are in the process of settlement, says the data.
In the case of another insurance scheme, Pradhan Mantri Suraksha Bima Yojana (PMSMY), which gives an accident insurance cover, 81.8% of 5,663 claims were settled as on 25 May. Out of this, payment has been made to 3,740 claimants.
The banks are in the process of renewing these low cost insurance schemes, launched at the initiative of Prime Minister Narendra Modi.
The policies will be renewed automatically if the bank accounts have the required balance.
Currently, there are more than 12.66 crore enrolments in PMJJBY, PMSBY (launched on 9 May 2015) and Atal Pension Yojana (launched in August 2015). According to the profiles of the customers in these three schemes, 52% are from the rural areas, while 48% are from the urban areas.
The data reveals that public sector banks are more active in terms of enrolling customer for the schemes, with State Bank of India topping the list, followed by the Punjab National Bank, Andhra Bank, Bank of Baroda, Canara Bank and Bank of India.
Similarly, public sector insurance companies paid most of the claims. For example, the Life Insurance Corportaion (LIC) the paid maximum insurance amount under the PMJJBY, followed by the SBI Life Insurance.
Similarly, under the PMSBY, the maximum insurance amount was paid by United India Insurance, New India Assurance, National Insurance, etc.
The PMJJBY offers a one year cover of Rs 2 lakh to all savings bank account holders in the age group of 18-50 years, covering death due to any reason, for a premium of Rs 330 per annum.
The PMSBY provides a renewable one-year accidental death-cum-disability cover of Rs 2 lakh for partial/permanent disability for those in the age-group of 18 to 70 years for a premium of Rs 12 per annum.