You are here: Home » Economy & Policy » News
Business Standard

Govt wants speedy settlement of claims; FM to meet insurers today

FM Sitharaman to meet insurers to discuss easing processes for settling claims

Topics
Nirmala Sitharaman | insurance schemes

Nikunj Ohri  |  New Delhi 

health insurance
The meeting will also focus on simplifying procedures and documentation to settle claims under the government’s flagship insurance schemes in a time-bound manner during the pandemic.

Finance Minister will meet the heads of public and private insurance companies on Saturday to expedite the sanctioning of claims under the Pradhan Mantri Jeevan Jyoti Bima Yojana (PMJJBY) and the Pradhan Mantri Suraksha Bima Yojana (PMSBY) during the pandemic.

The meeting will also focus on simplifying the procedures and documentations needed to settle claims under the government’s flagship in a time-bound manner.

This comes a month after Sitharaman intervened and asked the Insurance Regulatory and Development Authority of India (Irdai) to resolve the problem of Covid-19 patients being denied cashless health insurance claims by hospitals and insurance companies.

ALSO READ: FM Nirmala Sitharaman says macroeconomic fundamentals are sound

“The meeting on Saturday is expected to further ease and speed up processes for them,” said the finance ministry.


chart

About 103 million people were enrolled under the PMJJBY, which provides life insurance cover worth Rs 2 lakh at Rs 330 per annum to all account holders aged between 18 and 50 years, as on May 5. The PMSBY, which provides accident cover of Rs 2 lakh at Rs 12 per annum to account holders aged 18 to 70 years, has 234 million subscribers. The schemes cater for the marginalised and the poor who have been brought under the banking network through the PM Jan Dhan Yojana (PMJDY).

The Covid-19 pandemic has compelled the poor to avail of insurance cover offered by the government as enrolments under both the schemes have seen a jump. In the pandemic-struck FY21, enrolments under the PMJJBY shot up 47.5 per cent year-on-year to about 103 million. The claims, too, increased 32 per cent year-on-year to 250,351, of which 234,905 had been disbursed as of March 31, 2021.

Under the PMSBY, the number of subscribers increased over 25 per cent year-on-year to 233 million in FY21. Claims received under the scheme increased 16 per cent to 58,540, of which 45,472 were disbursed as of March 31.

Dear Reader,


Business Standard has always strived hard to provide up-to-date information and commentary on developments that are of interest to you and have wider political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering have only made our resolve and commitment to these ideals stronger. Even during these difficult times arising out of Covid-19, we continue to remain committed to keeping you informed and updated with credible news, authoritative views and incisive commentary on topical issues of relevance.
We, however, have a request.

As we battle the economic impact of the pandemic, we need your support even more, so that we can continue to offer you more quality content. Our subscription model has seen an encouraging response from many of you, who have subscribed to our online content. More subscription to our online content can only help us achieve the goals of offering you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practise the journalism to which we are committed.

Support quality journalism and subscribe to Business Standard.

Digital Editor

First Published: Fri, June 04 2021. 19:25 IST
RECOMMENDED FOR YOU
.