Centre hikes premium for flagship insurance schemes as claims rise

Premium raised first time in seven years, will make schemes viable and encourage more private insurers to join

The Centre has increased the premium rates for its flagship insurance schemes, Pradhan Mantri Jeevan Jyoti Bima Yojana (PMJJBY) and Pradhan Mantri Suraksha Bima Yojana (PMSBY), for the first time in seven years due to “long-standing adverse claims experience”, and to make them economically viable.

The premium for PMJJBY would increase from Rs 330 to Rs 436 a year effective June 1, and the PMSBY premium would rise from Rs 12 to Rs 20, the Ministry of Finance said in a statement.

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