New Delhi: The NDA government’s pet flagship schemes —  Pradhan Jeevan Jyoti Bima Yojana (PMJJBY) and Pradhan Mantri Suraksha Bima Yojana (PMSBY) may be bleeding the insurance companies, but the Centre is in no mood to hike the rates especially when Lok Sabha polls are just months away. PMJJBY is a life insurance policy and PMSBY is an accident insurance cover and in both cases the claims are fast outpacing the paltry returns owing to low premium amounts under them. The Centre, however, does not want to make these schemes unpopular.

Instead, the government is keen to aggressively promote the two financial inclusion schemes among masses as a run-up to the general elections of 2019.

Top sources said that in a recently held high-level meeting, Prime Minister Narendra Modi is learnt to have told officials of the finance ministry that more number of people should be included under the ambit of PMJJBY and PMSBY, and there should be no laxity in disposal of claims under these schemes. He is also learnt to have categorically said that a time limit should be fixed for expediting claims under them.

Sources further informed that there was a provision of revising premium rates in both the schemes after three years. However, despite both PMJJBY and PMSBY having completed three years in May this year, the government has refused to have a relook at premium rates, as it is felt that it was because of such low rates that both the schemes have become popular. With Lok Sabha polls round the corner, any hike in premium rates would be politically counterproductive.

Even as insurance companies have requested the finance ministry to increase the premium rates of both the schemes, they have been informed that it would not be possible to do so, sources privy to developments said. Under PMJJBY, the claims ratio for companies during 2017-18 was 120 per cent, while for PMSBY it was around 180 per cent in the same period, industry sources said.

Mr Modi in May 2015 had launched PMJJBY and PMSBY. While the former provides life insurance cover of Rs 2 lakh at an annual premium of just Rs 330, PMSBY provides accident insurance cover of Rs 2 lakh at only Rs 12 per year to all bank account holders.

State-owned insurance companies, which form around 75 per cent of market share in both the schemes, have been facing losses of around 90 per cent, especially in the PMSBY.