To encourage more insurers to participate in the Pradhan Mantri Jeevan Jyoti Bima Yojana (PMJJBY), the Insurance Regulatory and Development Authority of India (IRDAI) has reduced the capital required to be held by insurers offering PMJJBY by nearly 50%.
This move will allow life insurers to offer more policies under the scheme and provide financial security to the Indian population at the bottom of the pyramid through life insurance.
This step by IRDAI will supplement the Government of India’s recent revision of premium rates for the two flagship schemes – PMJJBY and Pradhan Mantri Suraksha Bima Yojana (PMSBY) – in order to make these schemes economically viable.
The easing of capital requirement by IRDAI will accelerate the penetration of life insurance in India, and will support the life insurers in achieving the target set by the government, IRDAI stated in a release.
