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Life Insurance Council apprehends Pradhan Mantri Jeevan Jyoti Bima Yojana viability

Out of Rs 330 charged for the Rs 2 lakh sum assured, insurance companies are left with only about Rs 250 after deducting bank commission and stamp duty.

PTI|
Jul 05, 2015, 04.39 PM IST
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Out of Rs 330 charged for the Rs 2 lakh sum assured, insurance companies are left with only about Rs 250 after deducting bank commission and stamp duty.
Out of Rs 330 charged for the Rs 2 lakh sum assured, insurance companies are left with only about Rs 250 after deducting bank commission and stamp duty.
KOLKATA: Apex body of life insurers, Life Insurance Council is working hard towards making the Pradhan Mantri Jeevan Jyoti Bima Yojana (PMJJBY) attractive for its member companies apprehending its viability under the present pricing policy.

Secretary General of the council V Manickam said, out of Rs 330 charged for the Rs 2 lakh sum assured, insurance companies are left with only about Rs 250 after deducting bank commission and stamp duty.

Apprehending the scheme's viability, the council has already written to industry regulator IRDA seeking its intervention in getting 50 per cent rebate in current re-insurance rate of Rs 180 on this policy promoted by the centre.

"We have also approached finance ministry seeking waiver on stamp duty on this policy. But it being a state subject, we'll have to reach out to each state. The council will approach the respective states soon to waive the stamp duty of Rs 40," he said.

As of now, 2.5 crore policies have been issued under the scheme.

Manickam said, for the sake of national interest, all stakeholders should share the responsibility. Out of 24 life insurance companies, ten companies have joined the programme.

Asked what would have been the ideal pricing for the scheme, Birla Sunlife Insurance Deputy CEO Mayank Bathwal said this is the first time that the industry is dealing with a policy of such scale.

"We have to track it at least one year," he told PTI. Meanwhile, Cibil has been selected to check duplication of claims in this scheme, he said.

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