The article titled "Mis-selling of a different kind: Are PMJJBY, PMSBY statistical illusions?" by Tamal Bandyopadhyay, published in Business Standard on May 25, 2025, critically examines the efficacy of two government-backed insurance schemes: the Pradhan Mantri Jeevan Jyoti Bima Yojana (PMJJBY) and the Pradhan Mantri Suraksha Bima Yojana (PMSBY).
The premium is debited from the bank account of the subscriber. It is managed by Life Insurance Corporation of India (LIC) or other participating insurers. The policy is renewed annually unless the subscriber opts out or the bank account is closed.
Superficial Success Metrics: While official data showcases high enrollment numbers for PMJJBY and PMSBY, the article argues that these figures may not reflect genuine coverage or awareness among the insured, particularly those at the bottom of the economic pyramid.
Challenges in Claim Settlements: The schemes face issues such as low awareness among beneficiaries, instances of fraud, and rejection of genuine claims, which undermine their intended impact.
Need for Ground-Level Reforms: The author emphasizes that without addressing these systemic issues, the schemes risk being successful only on paper, with negligible real-world benefits for the intended beneficiaries.
In conclusion, the article calls for a reassessment of these insurance initiatives to ensure they deliver tangible benefits to the target population, rather than serving as mere statistical accomplishments.
Ask Anything, Know Better
February 26 Pradhan Mantri Jan Arogya Yojana (PM-JAY) is a national public health insurance scheme of the Government of India that aims to provide free medical treatment and hospitalization for certain illnesses and procedures. It is the second component under Ayushman Bharat, which was launched on September 23, 2018, in Ranchi, Jharkhand by the Hon’ble Prime Minister of India, Shri Narendra Modi. PM-JAY is the largest health assurance scheme in the world, which aims to provide a health cover of Rs. 5 lakhs per family per year for secondary...
January 23 The Insurance Regulatory and Development Authority of India (IRDAI) is the regulatory body that oversees the insurance industry in India. It was established in 1999 as an autonomous and statutory body tasked with regulating and promoting the insurance and reinsurance industries in the country. Key functions of IRDAI include: Regulation and Supervision: IRDAI formulates regulations to ensure the fair conduct of the insurance business and protects the interests of policyholders. It also supervises and monitors the functioning of...
April 11 The Pradhan Mantri Jeevan Jyoti Bima Yojana (PMJJBY) is a government scheme launched on 9th May 2015 by PM Narendra Modi in Kolkata. This scheme was established to provide life insurance security to the poor and low-income section of the society. It is basically a death coverage. This scheme can be availed by people aged between 18 years to 50 years. They must have a bank account to be eligible for this scheme. It is also mandatory for the beneficiary to link their Aadhaar card to their bank accounts while availing this scheme. Anyone...
Comments
Write Comment