The two insurance schemes, Pradhan Mantri Jeevan Jyoti Bima Yojana (PMJJBY) and Pradhan Mantri Suraksha Bima Yojana (PMSBY), launched under the Jan-Dhan Se Jan Suraksha program aim to protect low-income households from economic shocks resulting from two key risks- loss of life and personal accidents. PMJJBY and PMSBY have been lauded for their affordability and accessibility. The product design and delivery mechanism of these products have made formal insurance a reality for millions of low-income households. Yet, almost 8 years after the launch of the program, the performance of the two insurance schemes has been muted. Low take-up rates and supply side challenges give rise to customer protection issues. This research brief documents the challenges in the delivery of the two insurance schemes, proposes potential solutions, and articulates a research agenda that players in the ecosystem can pursue to help these schemes reach their potential.
Read the full report here.