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The Insurance Regulatory and Development Authority of India (IRDAI) has reduced the capital required by insurance companies offering policies under Pradhan Mantri Jeevan Jyoti Bima Yojana (PMJJBY) by almost 50 per cent. This is to enable insurers to offer more policies under the scheme, and provide financial security to the bottom-of-the-pyramid segment in India. The easing of capital requirements by Irdai will accelerate the penetration of life insurance in India. It will support the life insurers in achieving their target set by the government. Pradhan Mantri Jeevan Jyoti Bima Yojana is a government-backed Life insurance scheme in India. It provides life insurance cover worth Rs 2 lakh to all account holders aged 18-50 years. According to government data, the number of active subscribers enrolled under PMJJBY as of March 31, 2022, is 64 million.
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