Pradhan Mantri Jeevan Jyoti Bima Yojana is a life insurance welfare scheme backed by the Indian Government. It was originally introduced in the February 2015 budget by then finance minister Mr. Arun Jaitley.
Later on, the scheme was formally launched on 9th may, 2015 in Kolkata by Prime Minister Narendra Modi. As of May 2015, only 20% of India’s population had any kind of life insurance policy and the PMJJBY policy was launched to increase the number.
Pradhan Mantri Jeevan Jyoti Bima Yojana Overview
Pradhan Mantri Jeevan Jyoti Bima Yojana is available for the individuals who are in the age range of 18 and 50 years of age with savings bank accounts. PMJJBY policy has an annual premium of ?330. The premium amount is exempted from GST and it is auto-debited from the subscriber’s registered bank account. The customers will receive a sum assured of Rs 2 lakhs irrespective of the cause of the death.
It’s important to understand that this scheme is available for the bank accounts opened under Pradhan Mantri Jan Dhan Yojana scheme. Generally, these accounts have zero balance facility. This scheme was originally launched to reduce the number of such zero balance accounts.
Now, this service is open to all bank account holders. They can avail this facility through their net-banking services or by filling a form at the bank branch at any time of the year.
Eligibility Conditions for Pradhan Mantri Jeevan Jyoti Bima Yojana:
|Entry Age||18 years||50 years|
|Maturity Age||55 years|
|Policy Term||1 year|
|Premium Amount (Annual)||Rs 330|
|Payment Mode||Auto-Debit from the Registered Savings Bank Account|
|Sum Assured (in INR)||Rs. 2 lakhs|
Pradhan Mantri Jeevan Jyoti Bima Yojana benefits:
PMJJBY policy doesn’t have any maturity benefit.
PMJJBY policy doesn’t have any surrender benefit.
Enrolment for PMJJBY:
The PMJJBY policy will be effective from the date the premium is debited from the savings account and the cover will be valid till 31st May of the successive year. It means that the cover will be renewed on June 1st of every year by debiting the premium amount from the registered saving account. It’s important to realize that the premium amount is subject to change from time to time as specified by the Government of India.
In case a subscriber wants to join the scheme post-June 1st, s/he can do so by paying the full year’s premium based on pro-rata calculation from her/his joining month and the documents submitted by him. However, at the time of renewal, the subscriber will only be allowed to pay the full premium amount and no pro-rata payment will be allowed for her/him.
Exclusions Under Pradhan Mantri Jeevan Jyoti Bima Yojana:
The individuals who are newly enrolled in the scheme won’t be covered during the first 45 days from their respective date of enrolment. Also, there will be no claim admissible in case of death of the life assured during those 45 days.
Features of the PMJJBY Policy:
Pradhan Mantri Jeevan Jyoti Bima Yojana scheme is a 1- year cover which can be renewed every year, where the life assured will get a life cover for death occurred due to any reason (natural or accidental).
This scheme is offered and administered through LIC or other life insurance providers. Participating institutions are free to engage either LIC or other such life insurance providers to implement the Pradhan Mantri Jeevan Jyoti Bima Yojana scheme for their subscribers.
All savings bank account holders who are in the age bracket of 18-50 years in participating banks are eligible to join the scheme. In case, a subscriber has multiple saving bank accounts in one or more participating banks, s/he can join the scheme through one savings bank account only. The subscriber’s Aadhar card will be considered as the primary KYC document for the bank account.
The insurance cover provided with PMJJBY policy will be valid for one year starting from 1st June to 31st May. The customer will require to give her/his consent to auto-debit the premium amount from the designated savings bank account.
This approval needs to be given on the prescribed forms by her/his particular bank. Late enrollment will only be entertained on full premium payment along with the submission of a self-attested certificate of the subscriber’s good health.
Please note that the individuals who exit the Pradhan Mantri Jeevan Jyoti Bima Yojana scheme at any point of time may re-join the scheme in future by submitting the prescribed proforma with declaration of her/his good health condition.