PMJJBY fostering govt's vision of insurance for all by 2047: LIC CEO

Pradhan Mantri Jeevan Jyoti Bima Yojana PMJJBY, launched by Prime Minister Narendra Modi in 2015, is playing a critical role in fostering the governments vision of Insurance for All by 2047, LIC CEO and MD R Doraiswamy said on Friday.

Pradhan Mantri Jeevan Jyoti Bima Yojana (PMJJBY), launched by Prime Minister Narendra Modi in 2015, is playing a critical role in fostering the government's vision of 'Insurance for All by 2047', LIC CEO and MD R Doraiswamy said on Friday. ''At the time of the scheme's launch in May 2015, only about 20 per cent of India's population was covered under any kind of insurance. The gap was not a failure of individual choice. It reflected the absence of products that could reach the poor at a price they could afford, through channels they already used,'' he said. The government's response was built in deliberate stages. India's aspirational financial inclusion journey began with Pradhan Mantri Jan Dhan Yojana, which was launched in 2014 to provide banking services to every citizen, with a particular focus on the rural poor, he noted. ''The bank account was the foundation, and a year later, on May 9, 2015, three schemes were launched together by the Prime Minister to raise the structure of financial security on that foundation. ''Pradhan Mantri Jeevan Jyoti Bima Yojana provided life cover. Pradhan Mantri Suraksha Bima Yojana provided accident and disability cover. Atal Pension Yojana addressed the retirement security of workers in the unorganised sector,'' he said. Together, these three schemes form the Jan Suraksha trinity, each addressing a distinct dimension of the risk that a low-income household faces, he said on the eve of the 11th anniversary of the scheme. PMJJBY is a one-year term assurance scheme providing a life cover of Rs 2 lakh to bank account holders within the age group of 18 to 50 years. The cover is available for death due to any cause, whether natural or accidental, with no exclusions based on pre-existing health conditions. The account holder submits a consent cum declaration form to join. No medical examination is required. No separate KYC documentation is needed as the subscriber's identity, age, and account details are already on the bank record. The annual premium is Rs 436. That is approximately Rs 1.20 per day. For this sum, a subscriber's family receives Rs 2 lakh upon his or her death during the policy year. As of now, he said, the scheme has cumulatively enrolled 27.43 crore individuals, settled 8.8 lakh claims, and disbursed Rs 17,600 crore to the families of deceased subscribers. The claim settlement ratio, as reported by the participating insurance companies to the government, stands at 99.95 per cent, he said, adding that it means when a family arrives at the bank with a death certificate and a claim form, the money reaches them in nearly every case. About LIC's contribution to promoting PMJJBY, Doraiswamy said the corporation occupies a central position. ''Today, LIC is among thirteen life insurance companies distributing PMJJBY through partner banks. LIC has active tie-ups with 808 banks across the country. During the current policy year from June 2025 to May 2026, 3.61 crore bank account holders have enrolled in PMJJBY with banks tied up with LIC,'' he said. Cumulatively since inception, he said, LIC has enrolled 21.49 crore subscribers under PMJJBY and paid 4.70 lakh claims to the families of deceased subscribers, amounting to Rs 9,414 crore. Behind that aggregate lies a succession of individual settlements, each reaching a family at its most exposed moment, he said. ''The larger vision within which PMJJBY operates is the government's programme of Insurance for All by 2047. LIC is steadily deepening its bank partnerships and extending the scheme's footprint to cover more citizens within this timeline,'' he said. Every new enrolment adds one more household to the network of formal financial protection, he added.