Pradhan Mantri Jeevan Jyoti Bima Yojana

Pradhan Mantri Jeevan Jyoti Bima Yojana

Prime Minister Narendra Modi on 9 May 2015 launched three schemes – Pradhan Mantri Jeevan Jyoti Bima Yojana (PMJJBY), Pradhan Mantri Suraksha Bima Yojana (PMSBY) and Atal Pension Yojana (APY) – with the objective of providing the basis of social security to the common man.  Out of these, Pradhan Mantri Jeevan Jyoti Bima Yojana (PMJJBY) is in effect from 1st June, 2015.  It is a useful renewable insurance scheme which provides adequate social security to the citizens on payment of premium of just Rs 330 per annum.  Paying its premium is also very convenient.  The premium of this insurance is auto debited directly from the customer's bank account.  Pradhan Mantri Jeevan Jyoti Bima Yojana is a progressive step in the direction of increasing the awareness and coverage of insurance in the country.

Through the Pradhan Mantri Jeevan Jyoti Bima Yojana, the central government has set a target to bring all sections of the society under insurance cover.  At present, 80-90 percent of the total population of the country does not have any kind of insurance cover.

Under this plan a life insurance cover of Rs 2 lakh for one year which is payable in case of death of the subscriber due to any reason.  Savings account holders in the age group of 18-50 years can avail this annually renewable life insurance by paying a premium of Rs 330 per annum per customer.  If a person has more than one savings account in any one or different banks, he can still take advantage of PMJJBY but in that case he can join the scheme with only one savings account.

Process to start Pradhan Mantri Jeevan Jyoti Bima Yojana

Via SMS 

An SMS is sent to the eligible customers applying for this scheme, on which they have to give their feedback by writing in English.  If the subscriber sends in writing, he joins the scheme and another SMS is sent to him as an acknowledgment that he has been included in the scheme.

The scheme depends on the banking system for its smooth functioning.  The name of the nominee, his relationship with the applicant and the date of birth, etc. details, this scheme automatically takes the information available in the savings account.

The application made for PMJJBY is not processed unless the information about the nominee is found in the bank's records.

The annual premium for the policy is paid from the savings account through auto debit mode and if for any reason the premium is not paid, the insurance cover of the plan member terminates.

Through Net Banking 

The customer can click on the 'Insurance' tab after logging in through net banking.  And after that they have to select PMJJBY and also they have to choose the account through which premium payment is to be made.  Also, they can retain the nominee of the existing savings account designation or nominate a new person at will.

They will also have to declare that they are in good health and will also have to submit a self-signed certificate for the same.  After completion of this process the system will display the complete details of PMJJBY.  Then after clicking on the 'Confirm' button they will get the form submission receipt in the form of a unique reference number which can be downloaded and kept for future reference.

Premium of Pradhan Mantri Jeevan Jyoti Bima Yojana:

PMJJBY can be renewed from year to year.  The member of this plan has to pay an annual premium of Rs 330 which means he has to deposit less than Re 1 per day and Rs 27.5 per month.  This amount is deducted from the account holder's savings bank account through 'auto debit' facility in one installment.  Therefore, it is necessary for the customers to deposit the required amount in their respective bank account and get the policy renewed every year.

The annual installment under this plan is paid before 31st May during each annual coverage period.  If the annual installment could not be deposited before this date, the policy can be renewed by paying the full annual premium in lump sum along with self-declaration of good health.  For their convenience, the mandate to be auto-debited every year during the term of the scheme can be issued to the member of the scheme in one go.

Eligibility Conditions:

All those citizens of India can apply for this scheme, whose age is between 18 years to 50 years and their account should be in any bank recommended for this scheme and at least such amount is deposited in this scheme.  The premium should be sufficient to pay Rs 330.  Also the applicant should have aadhar card which will be considered as the main KYC (customer information) of the candidate for that bank account.  It is necessary for the applicant to provide the name of the nominee and the relationship details with him.  Apart from this, the applicant will have to submit a self-declaration of his good health in the duly filled application form.

Death Claim

On the death of the member of this scheme, the person nominated by the candidate of the account will be entitled to get the death claim amount of Rs.

The master policy holder for this plan

This low cost life insurance plan is administered and offered in association with Life Insurance Corporation (LIC) and other life insurance companies including banks participating in the scheme who are master policy holders.  LIC will implement a simple and customer friendly administration and claim settlement, in consultation with the participating bank, the chosen insurance company.  The Insurance Company shall implement a simple and customer friendly administration and claim settlement process in consultation with the participating bank.  In fact, the decision of involving any Life Insurance Company for the implementation of this scheme for its customers will be at the discretion of the participating banks.  They shall bear the responsibility of recovering the annual premium in one installment, at the option, from the account holders immediately before the due date through the 'auto debit' process.  They will send the premiums every year to the insurance companies as soon as they are received.

termination of insurance

Life insurance cover can be either terminated or curtailed in any of the following situations-

On attaining the age of 55 years of the account holder.

If he closes his bank account or does not have sufficient deposit in his bank account to continue the insurance scheme.

If the cover is availed through more than one account, the cover will be limited to Rs 2 lakh and the premium will be forfeited.