Picturing How PMSBY and PMJJBY Matters

Abstract

In 2015, the Government of India launched two term plans viz. Pradhan Mantri Suraksha Bima Yojana (PMSBY) and Pradhan Mantri Jeevan Jyoti Bima Yojana (PMJJBY) with the objectives to cover the vast uninsured population. Under the schemes, the insured get term insurance coverage up to INR 0.2 million subject to certain terms and conditions by paying an annual premium of merely INR 12 and INR 330 respectively, the least among all the existing insurance policies available in the country. The present study seeks to report the motivating factors of the sample respondents of Dharmanagar, a town of the north-eastern Indian state of Tripura, for taking term insurance under PMSBY and PMJJBY. A model has been formed and the data reduction test has been carried out through Factor analysis. Using crosssectional research design and based on the outcome of a pilot study, a survey with 50 questions has been used to collect data from a randomly chosen sample of 125 respondents. The result of the Independent Sample t-test has indicated that gender is a significant influencing factor in purchasing insurance plans. Additionally, the findings of Cross Tabulations have validated that nongender demographics also have a significant influence in taking insurance coverage. The outcome of Multiple Regressions has documented that financial literacy and uncertainties have a significant influence in purchasing the plans. An analysis of the relevance of each policy has been drawn and it acknowledges a few shortcomings like study period, study area, small sample size, selective hypotheses and variables, self-administered interview schedule rather than adoption or adaptation and power of statistical tools; it has also indicated the roadmap for future research.

Keywords: Term Insurance, Survey, Descriptive Statistics, Factor Analysis, Inferential Statistics