Social security life insurance scheme Pradhan Mantri Jeevan Jyoti Bima Yojana (PMJJBY): Actuarial insight based on Indian mortality

Abstract

The Government of India has launched life insurance scheme Pradhan Mantri Jeevan Jyoti Yojana (PMJJBY) for the social security of Indians in the age group of 18–50 years. This article investigates the feasibility of this scheme based on the quantitative comparison of actual premium charged and expected premium rates for Indian population for each age year in the age group of 18–50 years. We have evaluated expected premium for all ages based on two life tables for Indian population. The nature of the scheme and social security of people to be achieved through PMJJBY is demonstrated based on some actuarial computations. Statistical analysis is presented based on recent available data of number of insured and claim received under this scheme.