To maintain the sale and renewals of Pradhan Mantri Jan Suraksha Scheme, the premium for the insurance plan have been kept unchanged for the fourth consecutive year. The scheme launched in May 2015 includes the personal accident scheme (Pradhan Mantri Suraksha Bima Yojana) and term insurance scheme (Pradhan Mantri Jeevan Jyoti Bima Yojana) of Rs. 2 lakh each.
The policy due for renewal on June 1 will charge annual premium of Rs. 12 as premium towards the personal accidental plan and Rs 330 for term insurance cover for 2019-20.
But because of the heavy loss under these government initiated insurance plans, insurance companies are looking to reduce their stake in these plans. Now loss ratios have touched 140%, which implies that for every Rs. 100 collected, Rs. 140 is paid as claims.
The insurance plans were launched with a view to provide social security to individuals.
"Premium increases will lead to a further drop in new enrollments which have been flat for the past one year. Hence, the price of the products will remain the same in 2019," said an official.