- What is Pradhan Mantri Jeevan Jyoti Bima Yojana (PMJJBY)?
- Scope of Pradhan Mantri Jeevan Jyoti Bima Yojana (PMJJBY)
- Benefits of PMJJBY Pradhan Mantri Jeevan Jyoti Bima Yojana
- Who is Eligibility For PMJJBY?
- Enrolment Modality of PMJJBY
- Payment of Premium
- Beneficiary under Pradhan Mantri Jeevan Jyoti Bima Yojana (PMJJBY)
- Claim Settlement Under Pradhan Mantri Jeevan Jyoti Bima Yojana (PMJJBY)
- Administration of Pradhan Mantri Jeevan Jyoti Bima Yojana (PMJJBY)
- Appropriation of Premium of PMJJBY
- Termination of Assurance
- Other Definitions
- Frequently Asked Questions
The Central Government of India introduced three Social Security Schemes in the Insurance and Pension Sectors. These schemes are namely the Pradhan Mantri Jeevan Jyoti Bima Yojana (PMJJBY), Pradhan Mantri Suraksha Bima Yojana (PMSBY), and the Atal Pension Yojana (APY). The aim is to move towards establishing a universal social security system, especially for the poor and underprivileged.
In collaboration with scheduled commercial banks, regional rural banks, and cooperative banks, the system is handled by both state and private sector insurance organizations.
The government has placed a strong emphasis on the insurance sector, as a major portion of the population formerly lacked insurance coverage. This social security system was designed to encourage the spirit of inclusive growth in line with the concept of ‘Sabke Saath Sab ki Vikas,’. The goal of ‘Sabke Saath Sab ki Vikas,’ is to include the impoverished and underprivileged sections of society.
What is Pradhan Mantri Jeevan Jyoti Bima Yojana (PMJJBY)?
The Pradhan Mantri Jeevan Jyoti Bima Yojana (PMJJBY) is a one-year life insurance scheme. It is renewable from year to year and provides coverage for death due to any cause. It is open to people aged 18 to 50 (life cover up to age 55) who have a savings bank account. Additionally, they must agree to join and enable auto-debit.
The policy is a one-year cover that will be renewable from year to year. It provides life insurance coverage against death due to any reason. The Life Insurance Corporation of India (LIC) is responsible for offering / administering the program. Moreover, other life insurance companies can offer or administer the insurance policy. Such other life insurance companies must be willing to offer the product on comparable conditions with the requisite approvals and bank tie-ups. Participating banks are free to work with any life insurance firm to put the program in place for its customers.
Scope of Pradhan Mantri Jeevan Jyoti Bima Yojana (PMJJBY)
Participants will be able to enroll if they have a savings bank account in one of the partner banks. Additionally, they must be between the ages of 18 and 50. Individuals who have numerous savings bank accounts in one or more banks are only eligible to join the scheme through one of their savings bank accounts. The primary KYC for the bank account would be Aadhar.
The scheme rewards a benefit of Rs.2 lakhs that is payable on a member’s death due to any reason.
Benefits of PMJJBY Pradhan Mantri Jeevan Jyoti Bima Yojana
- In the event of the policyholder’s untimely death, the scheme gives life insurance of Rs.2 lakh to the beneficiary.
- This is a life insurance policy that pays out solely in the event of sudden death. Hence, there are no benefits if the policy is surrendered or matured.
- The premium paid is deductible under section 80C of the Income Tax Act, 1961.
Who is Eligibility For PMJJBY?
- A resident of India who holds savings bank account holders in one of the participating banks.
- The applicants must provide their approval to join or allow auto-debit as per the above methodology
- The applicants must be between the ages of 18 (completed) and 50 (age nearer birthday).
- Individuals who enroll after the initial enrollment period until November 30, 2015, must self-certify. Such a self-certificate must state that they are in good health without any of the critical illnesses. Such critical illnesses are listed on the applicable Consent cum Declaration form as of the date of enrollment or earlier.
Here we added the policy details in the table below.
|Entry Age||Minimum 18 Years & Maximum 50 Years|
|Maturity Age||55 Years|
|Sum Assured||Rs. 2 Lakhs|
|Policy Term||1 Year (Renewable from year to year)|
|Premium Amount||Rs. 330|
|Grace Period||30 Days|
Enrolment Modality of PMJJBY
- The coverage for Pradhan Mantri Jeevan Jyoti Bima Yojana will be for a year, from June 1 to May 31. The applicant must make a choice to join or pay by auto-debit from a selected savings bank account on the prescribed forms by May 31st of each year. The scheme allows a delay in enrollment. However, the applicant must pay a full annual premium for prospective coverage along with the provision of a self-certificate of good health.
- Individuals who leave the scheme at any time may re-join in subsequent years. However, they can re-join only by presenting a declaration of good health.
- New entrants into the eligible group in future years may enroll with the PMJJBY scheme. Further, presently eligible individuals who did not join earlier or canceled their membership will be entitled to enroll while the program is active. However, in both situations, the applicants must submit a self-certificate of good health.
Payment of Premium
- Each member pays Rs.330/- each year.
- The premium will be deducted in one installment from the account holder’s savings bank account. The deduction will be using the ‘auto debit’ facility. Furthermore, the deduction will be on or before the 31st of May of each annual coverage period under the scheme depending on the option selected.
- The applicant can enroll for potential coverage beyond May 31st. However, such an applicant must pay the annual premium in full along with a self-certificate of good health.
- The premium is adjusted based on the number of claims filed each year. However, unless there are unforeseen adverse results of extreme magnitude, every effort will be taken to avoid a premium increase in the first three years.
- The Grace Period for payment of premium to the Designated Officer of the Corporation shall be 30 days from the due date. In case of death during Grace Period, assured benefit shall be settled on receipt of premium.
Beneficiary under Pradhan Mantri Jeevan Jyoti Bima Yojana (PMJJBY)
- “THE BENEFICIARY” shall mean the person or persons who have been appointed by the Member as Nominee and whose name or names have been entered in the Bank Records.
- Every Member shall nominate a spouse, one or more of child/ children, dependents to be the Beneficiary.
- The nomination shall be as per section 39 of the Insurance Act, 1938 as amended from time to time.
- In case the Beneficiary is minor/s, the appointee to receive the benefits is to be specified by the Member. The records relating to a nomination will be maintained by the Bank in the Register of Members kept by them.
- In the event of the death of the Member, the Benefits will be paid to the Beneficiary nominated by the Member.
- Upon the death of the Member prior to Terminal Date, the sum assured under the Assurance shall be payable to the nominated Beneficiary. However, the assurance is kept in force by payment of premium for that member.
Claim Settlement Under Pradhan Mantri Jeevan Jyoti Bima Yojana (PMJJBY)
On receipt of death intimation, the servicing bank branch shall send the Claim form (Annexure 7). The branch must collect the forms from the nominated Beneficiary and shall send them to the Designated Branch of the Bank for preferring the claim with the servicing Unit of LIC. Such forms are the Death Certificate, Discharge form (Annexure 8), and Certificate of Insurance. On admission of the claim, the claim amount will be paid to the bank account of the nominee. The designated branch of the Bank will be intimated through Annexure 9. In case of requirements or claim is not accepted, the same will be intimated to the designated branch of the Bank
Administration of Pradhan Mantri Jeevan Jyoti Bima Yojana (PMJJBY)
- The Life Insurance Corporation along with the participating banks are responsible for the administration & claim settlement of the policies.
- The scheme is administered by the LIC P&GS Units and other insurance company arrangements. Separately, the data flow method and data proforma are formed.
- The partnering bank is responsible for recovering the necessary annual premium in one payment from account holders on or before the due date via the ‘auto-debit’ mechanism.
- Members can also issue a one-time auto-debit mandate for the duration of the scheme.
- The participating insurance companies must obtain and retain the enrollment forms and authorization for an auto-debit consent form.
- The participating bank must receive and preserve a declaration form in the prescribed proforma.
- In the event of a claim, the LIC or insurance company may request the applicant to submit all the forms again.
- The LIC and Insurance Company retains the right to request these documents at any time.
- The acknowledgment slip can be combined with an insurance certificate to create an acknowledgment slip cum-certificate.
- The scheme’s performance will be evaluated on a yearly basis for re-calibration and other purposes as needed.
- Annual Insurance Premium to LIC / Insurance Company: Rs.289/- per member
- Expense reimbursement to BC/ Micro/ Corporate/ Agent: Rs.30/- per member per year
- Administrative expenditures reimbursed to participating bank: Rs.11/- per member per year
- The anticipated start date for the scheme is June 1, 2015. In succeeding years, the next Annual Renewal Date will be the 1st of June.
- If circumstances warrant, the scheme may be terminated prior to the start of a new future renewal date.
Termination of Assurance
Any of the following situations will cause the member’s life assurance to expire. Moreover, no benefit will be payable under Pradhan Mantri Jeevan Jyoti Bima Yojana:
- On attaining age 55 years (age near birthday) subject to annual renewal up to that date. However, entry will not be possible beyond the age of 50 years.
- Closure of a bank account or a lack of sufficient funds to keep the insurance in force.
- If a member is insured under PMJJBY with LIC of India or another firm through several accounts and LIC or another company receives premium mistakenly, the insurance cover will be limited to Rs. 2 lakh. The premium would be forfeited.
- Your insurance coverage might be canceled for any reason. Such reasons could be an inadequate amount on the due date or administrative concerns. You can get it back by paying the entire annual payment and providing a satisfactory statement of good health.
- In the case of regular enrolment, participating banks must send the premium to insurance firms on or before June 30th of each year. In all other circumstances, the premium must be sent in the same month as it is received.
- “THE ASSURANCE” shall mean the particular Assurance to be effected on the life of the Member under Pradhan Mantri Jeevan Jyoti Bima Yojana.
- The “Bank” will act for and on behalf of the Members in all matters relating to the Scheme. Every act done by an agreement made with and notice is given to the Corporation by the Bank shall be binding on the Members.
- Satisfactory evidence of health as required by the Corporation shall be furnished by every eligible member. They must submit at the time of his entry into the Scheme. Thus submission must be as per the “Consent-cum-Declaration Form” for joining the scheme.
- The benefits assured under the Scheme are strictly personal and cannot be assigned, charged or alienated in any way.
- The “Bank” or “Corporation” reserves the right to discontinue the Scheme at any time or to amend the Rules thereof on any Annual Renewal Date. However, they must serve a one month’s notice. Any amendment to the Rules of the Scheme will be done based on mutual agreement between “Corporation” and “Bank”.
- All Assurances issued under the Scheme shall be Indian Contracts. They will be subject to Indian Laws including the Indian Insurance Act, 1938 as amended, the Life Insurance Corporation Act, 1956, the Income Tax Act, 1961, and any legislation subsequently introduced. All benefits under the Scheme arising out of the death of any Member shall be payable in Indian Rupees.
Frequently Asked Questions
Yes, the cover under PMJJBY is, in addition, to cover under any other insurance scheme.
In the case of a joint account, all the account holders are eligible for the scheme. They just need to meet its eligibility criteria and pay the premium at the rate of Rs.330 per person per annum.
Yes, an NRI is eligible for the insurance benefit under PMJJBY. Moreover, the NRI must have an eligible bank account. Such a bank account must be with a bank branch located in India to purchase PMJJBY cover. However, he/ she must fulfill the terms and conditions along with the eligibility relating to the scheme. However, in case a claim arises, the claim benefit will be paid to the beneficiary or nominee only in Indian currency.
All bank account holders are eligible for subscribing to PMJJBY. However, any institutional account holder is not eligible for subscribing to the PMJJBY scheme.
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