On 9th of May Prime Minister Mr. Narendra Modi has launched three social security schemes. Two of them Pradhan Mantri Jeevan Jyoti Bima Yojana (PMJJBY) & Pradhan Mantri Suraksha Bima Yojana (PMSBY) are insurance schemes. The 3rd one Atal Pension Yojana is a Pension Scheme for the unorganised sector.
We have already talked about PM Suraksha Bima Yojana & Atal Pension Yojana in our earlier articles. You can read it here:
In this article let us discuss all the key highlights of PM Jeevan Jyoti Bima Yojana in detail. PMJJBY scheme is a term life insurance policy renewable either yearly or for a longer period of time. PM Jeevan Jyoti insurance will provide life insurance coverage in a very low premium amount.
Pradhan Mantri Jeevan Jyoti Bima Yojana (PMJJBY) Features
1. Benefits: The sum assured is same as of Suraksha Bima Yojana. Life insurance cover of Rs. 2 lakhs for a low premium rate of less than Rs.1 per day. On the death of the policyholder, it will provide coverage to his/her family.
2. Eligibility: Individuals need to have a savings bank account in the participating banks.
- People in the age group of 18 (completed) to 50 years (age nearer birthday) are eligible for this scheme
- Subject to payment of premium, people who join the scheme before completing 50 years can continue to have the risk cover up to the age of 55 years.
3. Enrolment Period: PM Jeevan Jyoti Bima Yojana provides yearly coverage in the period from 1st June to 31st May. The subscribers need to enrol and give their auto-debit consent by 31st May 2015. Late enrolment may be possible up to 31st August 2015. Govt. of India may extend this period for another three months (up to 30th of November, 2015).
4. Late Enrolment: Individuals who join the scheme after the initial enrolment period extending up to 31st August 2015 or 30th November 2015, need to provide a self-certification of good health and that he/she does not suffer from any of the critical illnesses mentioned in the Consent cum Declaration form.
Premium & Coverage Details of PMJJBY
5. Premium Amount: The premium for PMJJBY is Rs 330 per annum. This will be auto-debited in single instalment from the subscriber’s account. The initial premium of Rs. 330 is fixed for the first three years from June 1, 2015 to May 31, 2018. After that period, annual premium will be reviewed as per the insurers’ annual claims.
6. Payment Mode: The payment of premium will be directly auto-debited by the bank from the subscribers account.
7. Risk Coverage: The amount of coverage is Rs 2 Lakh for death by any reason.
8. Government Contribution: Government will borne the Common Publicity Expenditure. Various other Ministries can also co-contribute premium of their beneficiaries under various categories. Every year it will be decided from their budget or from the Public Welfare Fund created in the budget out of unclaimed money.
Read the details of PM Jeevan Jyoti Bima Yojana in Hindi.
9. Terms of Risk Coverage: A person has to opt for the scheme every year. He can also prefer to give a long-term option of continuation, in which case his account will be auto-debited every year by the bank.
Administration of Jeevan Jyoti Scheme
10. Scheme Provider: The scheme will be offered by Life Insurance Corporation (LIC) India. Other life insurers who are willing can join this scheme by tying-up with the participating banks.
Out of the yearly premium of Rs. 330, Rs. 289 will go to the insurer and Rs. 11 will be received by the bank as compensation for administrative costs incurred by them. Rs. 30 will be reimbursed for the expenses incurred by the BCs, corporate or micro agents.
11. Master Policy Holder: Participating Banks will be the Master policy holders. LIC or other insurance companies will finalize an easy subscriber friendly administration & claim settlement process after consulting with the participating bank.
12. Tax Exemption: FM Mr. Arun Jaitley has proposed to exempt this Jeevan Jyoti scheme from service tax. So the premium paid towards this scheme is eligible for tax exemption under section 80C.
Apply Pradhan Mantri Jeevan Jyoti Bima Yojana (PMJJBY)
13. Documents Required: As per the government notification, one copy of Aadhaar card will be sufficient to subscribe to this scheme.
14. Application Form: You can download the PM Jeevan Jyoti Bima Yojana Application Form here.
Individuals need to have an Aadhar card linked savings bank account to avail the benefits of this scheme. Submit the duly filled application form after that. Yearly re-subscription is mandatory in the month of June. The person can also opt for a long-term option along with auto debit facility.
15. Toll-Free Numbers: To know more about this scheme, you can call to the two Toll-Free Numbers provided – 1800 110 001 / 1800 180 1111. Check the state wise list of toll-free numbers here.
PM Jeevan Jyoti Bima Yojana Termination Clause
The life insurance cover of the member may terminate on any of the following events:
- On attaining the age of 55 years (age near birth day) subject to annual renewal up to that date
- Closure of account with the Bank or insufficient balance to keep the insurance in force
- In case a member is covered under PMJJBY with LIC of India/other insurer through more than one account and unconsciously premium is received by LIC / other insurer, insurance cover will be restricted to Rs. 2 Lakh and the premium shall be liable to be forfeited.
- Due to any technical reasons such as insufficient balance on due date or any administrative issues if the insurance cover is ceased, the same can be restored on receipt of full annual premium
No benefit is payable in the above cases.
If someone exit the scheme at any point of time, may re-join the scheme in future. They need to submit a declaration of good health in the prescribed proforma. New entrants into the eligible category or individuals who are currently eligible but did not join earlier or discontinued their subscription for any reason will be able to join the scheme, provided they submit a self-certificate of good health.
Govt. of India is taking multiple initiatives for the poor & unorganised sector of people. Pradhan Mantri Jeevan Jyoti Bima Yojana (PMJJBY) being a term life insurance scheme, is a very good option for coverage against death by any reason for low income group people. What do you think about this? Share your thoughts in the comments below.