This project seeks to optimise the service delivery of the two insurance schemes launched under the Jan-Dhan Se Jan Suraksha program, i.e., the Pradhan Mantri Jeevan Jyoti Bima Yojana (PMJJBY) and Pradhan Mantri Suraksha Bima Yojana (PMSBY). These schemes are lauded for their affordability and accessibility, and have made formal insurance a reality for millions of low-income households. Yet, in the last few years, customer protection issues have surfaced in the delivery of these schemes. Media investigations and reports have revealed several instances of banks charging customers’ accounts for the two insurance schemes without their consent. Various structural issues on the supply side are also a significant part of the problem that discourages providers from adequately servicing customers of these two insurance schemes. Addressing issues in their structural design and architecture is crucial to their success and to curb customer protection concerns.
The project culminated in a policy brief that lays out policy recommendations across four broad themes- structural design, process efficiency, market monitoring, and awareness and accessibility. To address gaps in customer service, we also proposed a diagnostic toolkit to assess on-ground performance of the two schemes from a customer centric perspective.
The project is widely relevant to financial inclusion policy, demonstrable through the fact that NITI Aayog has now commissioned a study via Microsave Consulting, which has applied the diagnostic toolkit to identify gaps in scheme delivery in 50 aspirational districts.
