Definition
Insurance Repository and Bima Schemes
Government micro-insurance schemes such as PM Jeevan Jyoti and PM Suraksha Bima provide low-cost life and accident cover to the masses.
To extend basic protection widely, the government runs micro-insurance schemes regulated within the IRDAI framework — a life-cover scheme and an accident-cover scheme offering large sums assured for very low annual premiums, debited directly from bank accounts linked under PM Jan Dhan Yojana.
These schemes leverage the JAM infrastructure to enrol millions who previously had no insurance, paying claims through Direct Benefit Transfer. They illustrate how financial inclusion plumbing is reused to deliver social security at scale and low cost.
Related terms
- Direct Benefit Transfer (DBT)Direct Benefit Transfer is the routing of government subsidies and welfare payments straight into beneficiaries' bank accounts to cut leakage and middlemen.
- IRDAIIRDAI is the Insurance Regulatory and Development Authority of India, which regulates and supervises the insurance industry and protects policyholders.
- Pradhan Mantri Jan Dhan YojanaPM Jan Dhan Yojana is the financial inclusion scheme that provides basic, no-frills bank accounts to unbanked households, often with overdraft and insurance benefits.
Plain-English explainer from The Dispatch Investors Encyclopedia. General information, not financial advice.