Page 15 - Insurance Times July 2022

Premium raised for insurers towards premium and claims large customer base of its promoter
of Rs 2,513 crore have been paid as on shareholder Canara Bank and is looking
flagship govt insurance
March 31, 2022. to double its penetration there from
schemes Further, an amount of Rs 9,737 crore the current 1.5 per cent to 3 per cent
over the next two years, Anuj Mathur,
The government raised the premium has been collected by the
Managing Director & CEO, has said.
for its flagship insurance schemes -- implementing insurers towards
Pradhan Mantri Jeevan Jyoti Bima premium and claims of Rs 14,144 crore Mathur also said in the next 3-4
Yojana (PMJJBY) and Pradhan Mantri have been paid under PMJJBY as on months, Canara HSBC Life Insurance
Suraksha Bima Yojana (PMSBY) in order March 31, 2022. will set up nearly 50 new standalone
to make them economically viable. The branches (besides the almost 10,000
Claims under both the schemes have
premium rate of PMJJBY has been branches of its shareholder banks),
been deposited into the bank accounts
revised upward to Rs 1.25 per day, taking its overall branch network to
of the beneficiaries through the direct
translating into an increase from Rs 103 from 54 now.
benefit transfer (DBT) route.
330 to Rs 436 annually.
The new physical branches of the life
The transmission of benefits through
The annual premium for PMSBY has insurer are expected to enhance its
these schemes were closely monitored
been hiked from Rs 12 to Rs 20, an footprint in Tier 2 and Tier 3 cities.
during COVID-19 and a host of
official statement said. The new They will be used both for customer
measures were taken to simplify the
premium rates are effective from June service and for new business.
procedures and expedite claims,
1, 2022. In percentage terms, the
including, outreach programmes and "Our decision to double the company's
premium increase is 32 per cent in
messages from the banks to reach out branch network in next 3-4 months
case of PMJJBY and 67 per cent for
to beneficiaries of the people who died shows our confidence . You will not
PMSBY.
during the pandemic, simplifying claims double up branches in three months if
The decision has been taken in view of
form and proofs of death and many you are not very confident about
the long-standing adverse claims
more, it said. business", Mathur told.
experience of the schemes, it added.
The number of active subscribers
Canara HSBC Life to SEBI directs MFs to
enrolled under PMJJBY and PMSBY as
double branch network to discontinue bundling SIPs
on March 31, 2022 were 6.4 crore and
22 crore, respectively. 103 in 3-4 months with insurance cover
Since the launch of the PMSBY, an Canara HSBC Life Insurance, which is SEBI has directed mutual funds (MFs)
amount of Rs 1,134 crore has been riding strong on its bancassurance to stop providing insurance cover as an
collected by the implementing model, wants to plumb deep into the attraction for wooing systematic

The Insurance Times, July 2022 15