Jan Suraksha revamp: PMJJBY, PMSBY, APY may see increase in sum insured

As Modi government’s flagship complete a decade this week, the Centre is evaluating a proposal to substantially raise coverage and benefits under the schemes that have become the backbone of India’s social security framework for low-income households and workers in the informal economy.

Citing officials familiar with the discussions, The Times of India reported on May 8 that the government is studying the financial implications of increasing the insurance cover under the Pradhan Mantri Jeevan Jyoti Bima Yojana () and the Pradhan Mantri Suraksha Bima Yojana () to as much as Rs 5 lakh from the current Rs 2 lakh.

The move comes as policymakers seek to strengthen the safety net for millions of beneficiaries amid rising healthcare costs, inflation and increasing awareness about financial protection.

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Department of Financial Services secretary M Nagaraju said the three Jan Suraksha schemes — PMJJBY, PMSBY and the (APY) — remain critical to the government’s financial inclusion strategy. Together, the schemes have brought nearly 57 crore adults into the fold of formal social security mechanisms over the past 10 years.

According to Nagaraju, authorities are currently examining multiple scenarios related to affordability, premium pricing and operational costs before taking a final decision on revising the benefits. A discussion paper has already been circulated among insurance companies to assess the impact of raising the insured amount.

Launched on May 9, 2015, the Jan Suraksha initiatives were designed to extend low-cost insurance and pension products to workers in the unorganised sector, many of whom had little or no access to formal financial protection earlier.

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Under PMJJBY, individuals between 18 and 50 years of age can avail life insurance coverage through their bank accounts by paying an annual premium of Rs 436. The scheme currently offers a life cover of Rs 2 lakh in the event of death due to any cause.

PMSBY, which targets accidental risks, provides insurance coverage of Rs 2 lakh for accidental death or total disability and Rs 1 lakh for partial disability. The annual premium under the scheme is only Rs 20, and enrolment is open to individuals aged between 18 and 70 years.

The third pillar of the Jan Suraksha framework, the Atal Pension Yojana, seeks to provide old-age income security. The pension scheme guarantees a fixed monthly pension ranging from Rs 1,000 to Rs 5,000 after the age of 60, depending on subscriber contributions. It is open to citizens aged 18–40 and also provides benefits for spouses and nominees.

Government officials said one of the distinguishing features of these schemes is that, despite being aimed at social welfare, they operate on commercial principles without direct budgetary support from the Centre. Insurance companies and banks manage the schemes through premium collections and enrolment-linked administration.

Over the past decade, these programmes have emerged as a major pillar of the government’s broader financial inclusion agenda alongside Jan Dhan accounts and direct benefit transfer systems. Officials said increasing the insurance cover could help improve the adequacy of protection for economically vulnerable families, especially in rural areas where a single earning member often supports an entire household.

Industry executives said any increase in the sum insured would likely require recalibration of premiums, though the government is expected to ensure that the schemes remain affordable for low-income subscribers. Insurers are also evaluating claim trends, persistency ratios and long-term sustainability before final recommendations are finalised.

The proposed revision is expected to be discussed further as the government marks the 10-year anniversary of the Jan Suraksha programmes, which policymakers say have significantly expanded India’s social protection architecture at minimal cost to beneficiaries.