PMSBY: Non-life players looking at widening coverage this year
Mumbai, Jun 5: Non-life insurers are bullish about Pradhan Mantri Suraksha Bima Yojana (PMSBY) and have drawn up ambitious plans to bring in more people under the scheme whose claim ratio has shot up to around 100 per cent.
Insurers said the scheme has helped them create awareness about insurance and reach out to more people with a readily available database. PMSBY is a social security cover which is available at a nominal premium of Rs 12 per person per year and provides a cover of Rs 2,00,000 in case of accidental death or permanent full disability or Rs 1,00,000 in case of partial but permanent disability.
The scheme was unveiled by Prime Minister Narendra Modi in Kolkata on May 9 last year. The largest non-life insurer New India Assurance opened 1.5 crore accounts under the scheme last financial year and is looking at increasing the number of accounts by 20 per cent this fiscal.
"We have opened 1.5 crore accounts under the scheme and collected Rs 18 crore in premium during the year gone-by and the claim ratio was at 100 per cent. Still, it has helped us a lot to create awareness on insurance," New India Assurance Chairman and Managing Director G Srinivasan told PTI.
"During the current fiscal year, we are looking at clocking 20 per cent growth in terms of opening accounts. At the same time, we are also aiming at renewing all the existing accounts," he added. Kolkata-based National Insurance Company has taken a lead in opening the accounts under the scheme.
"We have opened 3.3 crore accounts under the scheme last fiscal year, while the claim ratio was at around 100 per cent," National Insurance Chairman and Managing Director Sanath Kumar said.
"This year we are first looking at renewing all the existing accounts apart from adding more under the scheme. It will help us widen our reach," he said.