Insurance coverage under PMJJBY and PMSBY may be doubled in the upcoming budget

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Subscribe to enjoy similar stories. New Delhi: The Central government may more than double the insurance coverage under its schemes, the Pradhan Mantri Jeevan Jyoti Bima Yojana (PMJJBY) and the Pradhan Mantri Suraksha Bima Yojana (PMSBY), in the upcoming budget, two people aware of the matter told Mint. The initiative aims to strengthen financial security, especially for individuals from economically weaker sections, while advancing the vision of 'Insurance for All by 2047,' ensuring comprehensive insurance access for every individual and business in India, the people mentioned above added.

Proposals are under consideration to increase the life cover under PMJJBY, one of the government’s largest life insurance programmes, from the current limit of ₹2 lakh to ₹5 lakh, the first person mentioned above said requesting anonymity. "The proposed changes aim to address the insurance protection gap by offering higher coverage, ensuring that insured individuals or their dependents have adequate financial support to meet their obligations.

Increasing the coverage to ₹5 lakh under these schemes is expected to significantly reduce this gap," this person said. "An announcement in this regard could be made in the annual budget (to be presented on 1 February)," the person added.

Last month, the finance ministry said the PMJJBY scheme has provided ₹2 lakh life insurance cover to over 210 million beneficiaries across India. As of 20 October, 2024, enrolments had reached 216 million, with 860,575 claims settled, amounting to ₹17,211.50 crore.