After the recent hike in the premium rate, theIRDAI relaxed capital requirement norms significantly for insurers to encourage their participation in the government’s flagship programme Pradhan Mantri Jeevan Jyoti Bima Yojana (PMJJBY).
The regulator has reduced the capital required to be held by insurers offering PMJJBY by almost 50 per cent.
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, IRDAI said in a statement. The easing of capital requirements by IRDAI will accelerate the penetration of life insurance in India and will support the life insurers in achieving the target set by the government. The government has recently hiked the premium rates for the two flagship schemes, PMJJBY and Pradhan Mantri Suraksha Bima Yojana, to make these schemes viable.
