Insurance companies are gearing up to sell a record number of 30 crore policies through the Pradhan Mantri Suraksha Bima Yojana (PMSBY) this year to increase the insurance penetration level in the country.
According to New India Assurance chairman G Srinivasan, insurance companies will start selling policies next month and hope to raise around Rs 360 crore as premium in the first year. “Volumes are very high. We are not looking at large profits. But there’re no costs involved. We hope to sell around 30-40 crore policies,” Srinivasan told The Indian Express.
Under previous scheme floated along with the Jan-Dhan scheme, New India Assurance had issued 20 crore policies through RuPay card holders and collected a premium of around Rs 9 crore in the current year. “The premium per person was around 45 paise,” he said.
As announed in the Budget, the premium per person will be Rs 12 per annum for PMSBY cover. Any person having a bank account and Aadhaar number linked to the bank account can give a simple form to the bank every year before first of June in order to join the scheme. A person has to opt for the scheme every year. He can also prefer to give a long-term option of continuing in which case his account will be auto-debited every year by the bank.