To encourage more insurers to participate, Irdai eases capital requirement for PMJJBY
The Insurance Regulatory and Development Authority of India (Irdai) has reduced the capital required to be held by insurers offering PMJJBY by almost 50 per cent.
On Friday, the insurance sector regulator Irdai relaxed capital requirement norms significantly for insurers in order to encourage their participation in the government’s flagship programme 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 50 per cent, almost.
Irdai said in a statement that “This move will enable life insurers to offer more policies under the scheme, and provide financial security to the bottom of the pyramid of the Indian population through life insurance,”
The easing of capital requirements by Irdai will catalyse the penetration of life insurance in India and will support the life insurers in achieving the target set by the government.
This move by Irdai will supplement the recent revision of premium rates by the Government of India for the two flagship schemes – PMJJBY and Pradhan Mantri Suraksha Bima Yojana (PMSBY) in order to make these schemes economically viable.