Page 159 - India Insurance Report 2023- BIMTECH

India Insurance Report - Series II 147

accounts, account holders collectively had over 2 lakh crores in savings. PMJDY has presented a significant
shift in financial inclusion, including streamlining the direct benefit transfers to the beneficiary groups.

The Pradhan Mantri Jeevan Jyoti Bima Yojana (PMJJBY) is a government initiative offering a
one-year life insurance policy worth Rs 2 lakhs, with annual renewal options. To qualify for this program,
individuals must be aged between 18 and 50 and maintain a savings account with eligible banks. The life
insurance coverage is provided either by LIC or private insurance companies with a partnership
arrangement with the bank. The annual premium of Rs. 436 will be automatically deducted from the
account holder’s savings account to secure the insurance coverage. Participating banks have the flexibility
to collaborate with various life insurance companies to implement this scheme for their customers.

The Pradhan Mantri Suraksha Bima Yojana (PMSBY) offers accident insurance with a coverage
amount of Rs 2 lakhs for accidental death and disability resulting from accidents over a one-year period.
It operates in a manner similar to the Prime Minister Jeevan Jyoti Bima Yojana (PMJJY). The premium
cost is just Rs 20 for the entire year. Both PMJJY and PMSBY have significantly altered the way rural
communities perceive insurance, primarily due to the swift resolution of death claims, highlighting the
advantages of insurance coverage. The entire process, from policy purchase to claim settlement, is
conducted digitally.

The Rural Postal Life Insurance (RPLI) initiative, established by the government, aims to extend
insurance coverage to rural and disadvantaged communities through post offices. Managed by the
Department of Posts, RPLI provides cost-effective life insurance options compared to other competitive
insurers. This program operates efficiently, with the benefits of cost savings being passed on to
policyholders in the form of bonuses. RPLI offers various plans, such as Grama Suraksha, Grama Suvidha,
Grama Santosh, Grama Sumangal, Gram Priya, and a specialized plan for individuals with disabilities.
The minimum sum assured is Rs 10,000, while the maximum is Rs 3 lakh. The maximum age limit for
whole life and endowment assurance policies is 55 years, whereas for other plans, it stands at 45 years.
Enrolees in these schemes must undergo mandatory medical examinations, and for policies without
such requirements, the maximum age limit is 35 years.

The Pradhan Mantri Fasal Bima Yojana (PMFBY) scheme offers financial protection to farmers
against crop failure, thereby helping them stabilize their income. It covers a wide range of crops, including
food and oilseeds crops, as well as annual commercial and horticultural crops for which historical yield
data is available and for which a sufficient number of Crop Cutting Experiments (CCEs) have been
conducted as part of the General Crop Estimation Survey (GCES). The implementation of the scheme
is entrusted to empanelled general insurance companies, with the selection of the Implementing Agency
(IA) being carried out through a bidding process by the respective State Governments. While the scheme
is mandatory for farmers who have taken crop loans or hold a Kisan Credit Card (KCC) account for
notified crops, it is voluntary for others. The Ministry of Agriculture oversees the administration of this
initiative. PMFBY is a highly subsidized insurance scheme, with farmers’ contributions capped at Rs
1.5% for Rabi crops and Rs 2.00% for Kharif crops. The remaining premium is shared by both the
Central and State Governments.

The Pradhan Mantri Jan Aarogya Yojana (PMJAY) is a comprehensive healthcare insurance
initiative introduced by the Ministry of Health and Family Welfare, Government of India. Its primary