Pradhan Mantri Jeevan Jyoti Bima Yojana (PMJJBY) is a life insurance scheme valid for one year and is renewable from year to year, offering coverage for death. PMJJBY is a pure term insurance policy, which covers only mortality without any investment component.
Details of the PM Jeevan Jyoti Bima Yojana Scheme
As mentioned earlier, this scheme is a one-year Insurance Scheme, and it offers life insurance cover for death due to any reason. The plan would be offered/administered through LIC (Life Insurance Corporation of India) and other Life Insurance companies willing to provide the product on similar terms with the required approvals and tie-ups with Banks for this purpose.
PMJJBY can be availed by the people who fall under the age group of 18 to 50 years ( life covers up to age 55) and have a savings bank account. Interested people who give their consent to join and enable auto-debit can avail of the benefits of this scheme.
A life cover of Rs. 2 lakhs is available under the PMJJBY scheme, at a premium of Rs.330 per annum per member, and is renewable every year. If someone has a joint account, all the account holders can join the scheme, provided they meet its eligibility criteria and agree to pay the premium at the rate of Rs.330 per person.
Features of the Scheme
Maturity: This plan has no maturity or surrender benefits.
Enrolment: The Master policyholders can be participating banks or post offices. The date of start of insurance cover is the later of the 1st of June or the date of enrolment of the insured member for entering the scheme, and the insurance cover will be valid until the 31st of May of the following year. The premium will be deducted from the account holder’s bank / Post office account in one payment, based on the choice selected at the time of enrolling in the scheme.
Exclusion: For new members enrolling in the scheme, insurance cover will not be available for death (other than due to accident) occurring during the first 30 days from the date of enrollment into the scheme (lien period), and no claim will be admissible if death (other than due to accident) occurs during the lien period.
Tax Benefits: The premium paid for the policy is tax-deductible under section 80C of the Income Tax Act.
Break-up of the Premium
- PMJJBY Premium to the insurance company – Rs. 436 per annum per member
- Reimbursement of expenses to the agent/bank – Rs.30 per annum per member;
- Reimbursement of the administrative costs to the listed bank – Rs.11 per annum per member
You can find more details related to the scheme, such as enrolling, eligibility criteria and so on down the page
Pradhan Mantri Jeevan Jyoti Bima Yojana Eligibility
The Eligibility Criteria of the policy are listed below:
- Any person who is between 18- 50 years old and has a savings account can enroll for this scheme through the participating banks.
- One can join this scheme with only one saving bank account even if they have multiple bank accounts
- To avail of the benefits offered by this policy, it is mandatory to link your Aadhar card to the eligible/participatory bank account.
- Insurance buyers who join the scheme after the initial enrolment period, i.e., from the 31st of August 2015- the 30th of November 2015, must produce a self-attested medical certificate proving that he/she is not suffering from any critical illness as mentioned in the policy declaration form.
How to Enroll for PMJJBY Scheme?
The enrolment process for this scheme has been made simple and easy. PMJJBY is managed through LIC (Life Insurance Corporation of India) and other private life insurance companies in India. One may also contact their respective bankers for the process of enrolment if the bank is tied up with insurance companies. Even if an individual has multiple bank accounts in one or different banks, he/she would be eligible to join the scheme only through one bank account.
Those who wish to join the scheme now may still do so as one can renew the plan anytime during the year by paying the full premium and not the proportionate amount. However, the renewal date is still the same, i.e on the 1st of June for all of the subscribers.
However, It’s recommended to join now and get the cover for the entire 12 months. Even if you had exited the scheme at any point, you may still re-join the scheme by paying the annual premium.
How Does PMJJBY Work?
The death claim will be settled by the respective Office of the Insurance Company concerned. The process which is followed is given below:
Steps to be taken by the Nominee
- The nominee has to approach the bank where the member has the ‘savings bank account’ through which he/she was associated with PMJJBY. The nominee should have the death certificate of the member.
- Next, the nominee needs to collect the claim form and discharge receipt from the bank or any other designated source like insurance company branches, hospitals, insurance agents, etc.
- Submit the duly filled claim form, death certificate, and discharge receipt along with a xerox copy of the cancelled cheque of the nominee’s bank account(if available) or the bank account details to the bank wherein the member was having the ‘savings bank account’ of PMJJBY.
Steps to be taken by the Bank
- The bank has to check whether the cover for the said member was active on the date of the member’s death, i.e., whether the premium for the said cover on Annual Renewal Date, i.e. the 1st of June, prior to the member’s death, was deducted and remitted to the Insurance Company concerned.
- Next, the bank needs to verify the claim form and the nominee details from the records available to them and fill in the relevant columns of the claim form.
- Bank has to submit the below-given documents to the designated office of the insurance company concerned:
- Claim Form duly completed
- Death certificate
- Discharge Receipt
- Photocopy of cancelled cheque of the nominee (if available).
- The maximum time frame for the bank to forward the duly completed claim form to the insurance company is 30 days from the submission of the claim to it.
Steps to be taken at the designated office of the Insurance Company
- Check if the Claim form is complete in all respects and all the relevant documents have been attached to it. If not, contact the bank concerned.
- If the claim is eligible in all respects, the designated office of the insurer will have to check whether the member’s coverage is in force and no death claim settlement has been effected for the member through any different account. In case any claim has been settled previously, the nominee shall be informed accordingly with a copy marked to the bank.
- If no claim has been settled for the said member, the mentioned payment will be released to the nominee’s bank account, and an acknowledgement shall be sent to the nominee with a copy marked to the bank.
- The insurance company has 30 days from the receipt of the claim from the bank to approve the claim and disburse money.
Pradhan Mantri Jeevan Jyoti Bima Yojana Benefits
- PMJJBY provides a death coverage of Rs 2,00,000 to the beneficiary of the policy in the case of the sudden demise of the insured person.
- As PMJJBY is a pure term insurance plan, it does not offer any maturity or surrender benefit.
- The premium paid towards the policy is eligible for tax benefits as under section 80C of the Income Tax Act.
- PMJJBY provides a risk coverage of 1 year. However, as this is a renewable policy, it can be renewed yearly.