Pradhan Mantri Jeevan Jyoti Bima Yojana: A Comprehensive Guide
Introduction
- Brief introduction to Pradhan Mantri Jeevan Jyoti Bima Yojana (PMJJBY)
- Significance of PMJJBY in India
Section 1: Understanding PMJJBY
- Overview of PMJJBY
- Eligibility criteria for PMJJBY
- Benefits of PMJJBY
- Sum assured under PMJJBY
- Premium payment for PMJJBY
- Renewal process for PMJJBY
- Claim settlement process for PMJJBY
Section 2: Enrolling for PMJJBY
- How to enroll for PMJJBY
- Documents required for enrolling in PMJJBY
- Enrolling in PMJJBY through banks
- Enrolling in PMJJBY through insurance companies
- Enrolling in PMJJBY online
Section 3: PMJJBY and its impact on India
- PMJJBY’s contribution to financial inclusion in India
- PMJJBY’s role in promoting insurance awareness in India
- PMJJBY’s impact on the Indian insurance industry
- PMJJBY’s significance in achieving the goal of universal insurance coverage in India
Section 4: Criticisms and Limitations of PMJJBY
- Criticisms of PMJJBY
- Limitations of PMJJBY
Conclusion
- Summary of key points
- Importance of PMJJBY in the Indian insurance landscape
- Future of PMJJBY in India
Introduction
Pradhan Mantri Jeevan Jyoti Bima Yojana
popularly known as PMJJBY, is a government-backed insurance scheme in India aimed at providing life insurance coverage to the masses at an affordable premium. Launched in May 2015, PMJJBY is one of the flagship social security schemes under the Indian government’s financial inclusion initiative. In this article, we will provide a comprehensive guide to PMJJBY, including its benefits, eligibility criteria, enrollment process, and impact on India.
Section 1: Understanding PMJJBY
Overview of PMJJBY
- PMJJBY is a term insurance scheme that offers a life cover of Rs. 2 lakh to its subscribers. The scheme is renewable on an annual basis and offers coverage for a period of one year. The scheme is open to all Indian citizens between the ages of 18 and 50 years who have a savings bank account. PMJJBY is a group insurance policy that is offered by Life Insurance Corporation of India (LIC) and other participating insurance companies.
Eligibility criteria for PMJJBY
To enroll in PMJJBY, the applicant must be an Indian citizen between the ages of 18 and 50 years. The applicant must have a savings bank account and provide the necessary consent to auto-debit the premium amount from their account. The applicant must also be in good health at the time of enrollment.
Benefits of PMJJBY
The primary benefit of PMJJBY is the life insurance coverage of Rs. 2 lakh that it offers to its subscribers. The scheme provides financial security to the family of the subscriber in case of his/her untimely demise. The premium for PMJJBY is very affordable, making it accessible to the masses. The scheme also offers tax benefits to the subscriber under section 80C of the Income Tax Act.
Sum assured under PMJJBY
The sum assured under PMJJBY is Rs. 2 lakh. In case of the death of the subscriber due to any reason, the sum assured is payable to the nominee.
Premium payment for PMJJBY
The premium for PMJJBY is Rs. 330 per annum, which is auto-debited from the subscriber’s savings account on an
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Pradhan Mantri Jeevan Jyoti Bima Yojana (PMJJBY)
life insurance scheme launched by the Government of India in May 2015. The scheme aims to provide life insurance coverage to individuals who fall under the category of “underprivileged“.
- The scheme is available to all Indian citizens who are between the ages of 18 and 50.
- The PMJJBY scheme is a pure term life insurance plan. It provides a sum assured of Rs. 2 lakhs to the nominee in the event of the policyholder’s death.
- The premium for the scheme is only Rs. 330 per annum, which makes it affordable for the underprivileged section of society.
- The scheme is implemented by the Life Insurance Corporation of India (LIC) and other private sector insurance companies.
- The scheme is renewable on an annual basis, and the premium is deducted automatically from the policyholder’s bank account through the Aadhaar Enabled Payment System (AEPS).
- One of the unique features of the PMJJBY scheme is that it is a group insurance plan. This means that it is offered to a group of people who are associated with a particular organization, such as a bank, a cooperative society, or a social welfare organization. The group insurance plan ensures that the premium is low, making it accessible to a larger group of people.
- The PMJJBY scheme is a welcome step by the government towards providing affordable life insurance coverage to the underprivileged section of society. It is a part of the government’s larger financial inclusion program, which aims to bring more people into the formal financial system.
- The scheme has been well received by the public, and more than 13 crore people have enrolled in the scheme as of March 2022. The scheme has also been lauded by international organizations for its unique features and its success in bringing life insurance coverage to a larger segment of the Indian population.
- In addition to the PMJJBY scheme, the government has also launched other insurance schemes, such as the Pradhan Mantri Suraksha Bima Yojana (PMSBY) and the Atal Pension Yojana (APY).
- These schemes provide accidental death and disability coverage and a pension plan, respectively, to the underprivileged section of society.
- The PMJJBY scheme is an excellent example of the government’s commitment to providing affordable financial services to all citizens. It is a scheme that has the potential to bring positive changes to the lives of millions of people by providing them with financial security and peace of mind.
- In conclusion, the Pradhan Mantri Jeevan Jyoti Bima Yojana is a significant step towards achieving financial inclusion in India. The scheme’s low premium, group insurance plan, and automatic renewal make it an accessible option for the underprivileged section of society.
- The scheme’s success in enrolling a large number of people is a testament to its effectiveness in providing affordable life insurance coverage. The scheme is an essential component of the government’s larger financial inclusion program, and its success bodes well for the future of the program.
PMJJBY Benefits Explained.
- “Secure Your Family’s Future with Pradhan Mantri Jeevan Jyoti Bima Yojana”
- “Protect Your Loved Ones with India’s Prime Minister’s Life Insurance Scheme”
- “A Comprehensive Guide to Pradhan Mantri Jeevan Jyoti Bima Yojana”
- “The Importance of Pradhan Mantri Jeevan Jyoti Bima Yojana in Today’s World”
- “Ensuring Financial Stability for Your Family with PMJJBY”
- “Peace of Mind for You and Your Family with Pradhan Mantri Jeevan Jyoti Bima Yojana”
- “Affordable Life Insurance for All with PMJJBY”
- “How Pradhan Mantri Jeevan Jyoti Bima Yojana Can Benefit You and Your Family”
- “Protecting Your Family’s Future: The Benefits of PMJJBY”
- “Why Pradhan Mantri Jeevan Jyoti Bima Yojana is a Must-Have for Every Indian”
Pradhan Mantri Jeevan Jyoti Bima Yojana: A Comprehensive Guide
The Pradhan Mantri Jeevan Jyoti Bima Yojana (PMJJBY) is a government-backed life insurance scheme launched in 2015 to provide affordable life insurance coverage to individuals from all socio-economic backgrounds in India. The scheme is a part of the government’s larger financial inclusion initiative, and it aims to provide financial security and stability to families in the event of the policyholder’s death.
Eligibility Criteria
- The eligibility criteria for the PMJJBY are quite simple. Any Indian citizen between the ages of 18 and 50 years can enroll in the scheme, provided they have a savings bank account. Additionally, the individual must be willing to provide a self-certification of good health and consent for the auto-debit of the premium from their bank account on an annual basis.
Benefits of the Scheme
- The PMJJBY offers a host of benefits to its policyholders. The scheme provides life insurance coverage of Rs. 2 lakhs in case of the policyholder’s death, regardless of the cause of death. The premium for the scheme is quite low, at just Rs. 330 per annum, making it an affordable option for individuals from all walks of life. The premium is auto-debited from the policyholder’s bank account on an annual basis, making it a hassle-free option for those looking for life insurance coverage.
Claim Process
- The claim process for the PMJJBY is quite simple and straightforward. In the event of the policyholder’s death, the nominee of the policy can file a claim with the bank where the policyholder’s savings account is held. The nominee will need to provide a copy of the policyholder’s death certificate and their own identity proof. Once the claim is filed, the bank will process the claim and transfer the insurance amount to the nominee’s account.
Conclusion
- The Pradhan Mantri Jeevan Jyoti Bima Yojana is a great initiative by the Indian government to provide affordable life insurance coverage to individuals from all socio-economic backgrounds. The scheme is easy to enroll in, has a low premium, and offers life insurance coverage of Rs. 2 lakhs in case of the policyholder’s death. With a simple claim process, the PMJJBY is an excellent option for those looking for life insurance coverage in India.
FAQ,s
| S.No. | Question |
|---|---|
| 1 | What is Pradhan Mantri Jeevan Jyoti Bima Yojana (PMJJBY)? |
| 2 | What are the benefits of PMJJBY? |
| 3 | Who is eligible for PMJJBY? |
| 4 | How to apply for PMJJBY? |
| 5 | What is the premium amount for PMJJBY? |
| 6 | How is the premium for PMJJBY paid? |
| 7 | What is the coverage amount under PMJJBY? |
| 8 | What is the tenure of PMJJBY? |
| 9 | Can an individual enroll in PMJJBY multiple times? |
| 10 | Is medical examination required for availing PMJJBY? |
| 11 | How is the claim settled under PMJJBY? |
| 12 | What documents are required for availing PMJJBY? |
| 13 | What is the age limit for enrolling in PMJJBY? |
| 14 | Can an individual opt out of PMJJBY? |
| 15 | Is PMJJBY transferable to another person? |
| 16 | Can an individual switch from one bank to another for availing PMJJBY? |
| 17 | Is there any tax benefit available under PMJJBY? |
| 18 | How is PMJJBY different from other life insurance schemes? |
| 19 | Can NRIs enroll in PMJJBY? |
| 20 | What is the process of renewal of PMJJBY? |
What key questions do readers have that need to be answered ?
- What is Pradhan Mantri Jeevan Jyoti Bima Yojana?
- Who is eligible for the scheme?
- How much does it cost?
- How long is the policy term?
- How to enroll?
- What are the benefits of the scheme?
- How are claims settled?
- Is there a waiting period?
- Can the policy be renewed?
- Is there a surrender value?
FAQs on PRADHAN MANTRI JEEVAN JYOTI BIMA YOJANA (PMJJBY)
Q1. What is the nature of the scheme?
Ans :The scheme is a one-year cover term life insurance scheme, renewable from year to
year, offering life insurance cover for death due to any cause.
Q2. What would be the benefits under the scheme and premium payable?
Ans : Rs.2 lakh is payable on a subscriber’s death due to any cause.
The premium payable is Rs.436/- per annum per subscriber.
For those getting enrolled under PMJJBY for the first time during the middle of the
policy period, payment of pro-rata premium is allowed as under;
a) For enrolment in June, July and August – Full annual premium of Rs.436/- is
payable.
b) For enrolment in September, October, and November – pro rata premium of
Rs. 342/- is payable
c) For enrolment in December, January and February – pro rata premium of Rs.
228/- is payable.
d) For enrolment in March, April and May – pro rata premium of Rs. 114/- is
payable.
However, full year’s premium @ Rs 436/- is payable at the time of renewal
under the scheme.
For subscribers enrolling for the first-time, risk starts from the date of auto-debit of
premium. However, insurance cover shall not be available for death (other than due
to accident) occurring during the first 30 days from the date of enrolment into the
scheme (lien period) and in case of death (other than due to accident) during lien
period, no claim would be admissible.
Q3. How will the premium be paid?
Ans : The premium will be deducted from the account holder’s bank / Post office account
through ‘auto debit’ facility in one instalment, as per the consent given by the
subscriber at the time of enrolment.
Q4. Who will offer / administer the scheme?
Ans : The scheme is offered/administered through LIC and other life insurance companies
willing to offer the product with necessary approvals on similar terms, in
collaboration with participating Banks / Post office. Participating banks / Post office
are free to engage any such life insurance company for implementing the scheme for
their account holders / subscribers.
Q5. Who will be eligible to subscribe?
Ans : All individual (single or joint) account holders of participating banks / Post office, in
the age group of 18 to 50 years are entitled to join. In case of multiple accounts held
by an individual in one or different banks / Post offices, the person is eligible to join
the scheme through one bank / Post office account only.
Q6. What is the enrolment period and modality?
Ans : The cover shall be for one-year period stretching from 1st June to 31st May. At the
time of enrolment, subscriber has to submit his option on the prescribed form, to
join / pay by auto-debit from the designated individual bank / Post office account,
until further instructions, an amount of Rs.436/- (Rupees Four Hundred Thirty-Six
only) per annum, or any amount as decided from time to time, which may be
intimated immediately if and when revised, towards renewal of coverage under the
scheme.
Delayed enrolment / renewal subsequent to this date will be possible on payment of
appropriate premium as described in Q.2 above, subject to changes in terms
regarding insurance coverage.
Q7. Can eligible individuals who fail to join the scheme in the initial year join
in subsequent years?
Ans : Yes, new eligible entrants can also join in future years on payment of premium
through auto-debit. However, for such subscribers, insurance benefit shall not be
available for death (due to any cause other than accident) occurring during the first 30
days from the date of enrolment into the scheme.
Q8. Can individuals who leave the scheme re-join?
Ans : Individuals who exit the scheme at any point may re-join the scheme in future years
by paying the appropriate premium as described in Q.2 above. However, for such
subscribers, insurance benefit shall not be available for death (due to any cause other
than accident) occurring during the first 30 days from the date of enrolment into the
scheme
Q9. Who would be the Master policy holder for the scheme?
Ans : Participating Banks/ Post office are the Master policy holders for the scheme. A
simple and subscriber friendly administration & claim settlement process has been
finalized by LIC / other insurance companies in consultation with the participating
banks / Post office.
Q10. When can the assurance on life of the member terminate?
Ans : The assurance on the life of the member shall terminate / be restricted accordingly
on any of the following events:
a) On attaining age 55 years (age near birth day), subject to annual renewal up to
that date (entry, however, will not be possible beyond the age of 50 years).
b) Closure of account with the Bank or insufficiency of balance to keep the
insurance in force.
c) In case a member is covered through more than one account and premium is
received by LIC / insurance company inadvertently, insurance cover will be
restricted to Rs. 2 Lakh and the premium paid for duplicate insurance(s) shall
be liable to be forfeited.
Q11. What will be the role of the insurance company and the Bank?
Ans :
a) The scheme will be administered by LIC or any other life insurance company
which is willing to offer the product in partnership with banks / Post office.
b) It will be the responsibility of the participating bank / Post office to recover
the appropriate premium in one instalment, as per the option, from the
account holders on or before the due date through ‘auto-debit’ process and
transfer the amount due to the insurance company.
c) Enrolment form / Auto-debit authorization / Consent cum Declaration form
in the prescribed proforma, as required, shall be obtained and retained by the
participating bank / Post office. In case of claim, LIC / insurance company
may seek submission of the same. LIC / Insurance Company also reserve the
right to call for these documents at any point of time.
Q12. How would the premium be appropriated?
Ans : Appropriation of Premium:
Appropriation of
Premium where:
Full Annual
Premium of
Rs.436/-
collected
Rs.342/-
collected
in the 2nd
quarter of
risk Period
Rs.228/-
collected
in the 3rd
quarter of
risk period
Rs.114/- is
collected
in the 4th
quarter of
risk period
(1) Insurance Premium to
LIC/ Insurance
Company
Rs.395/- Rs.309/- Rs.206/- Rs.103/-
(2) Commission payable
to Business
Correspondents,
agents, etc. (For new
enrolments only)
Rs.30/- Rs.22.50 Rs.15/- Rs.7.50
(3) Administrative
Expenses payable to
participating Banks
Rs.11/- Rs.10.50 Rs.7/- Rs.3.50
Note: The amount of commission payable to Business Correspondents, agents, etc.
as specified in item (2) saved in case of voluntary enrolment by an accountholder
through electronic means shall be passed on as a benefit to the subscriber by
correspondingly reducing the amount of the Insurance Premium payable specified
above.
Q13. Will this cover be in addition to cover under any other insurance scheme
the subscriber may be covered under?
Ans : Yes.
Q14. Can all holders of a joint bank account join the scheme through the said
account?
Ans : In case of a joint account, all holders of the said account can join the scheme
provided they satisfy its eligibility criteria and pay the appropriate premium as
described in reply to Q. 2 above.
Q15. Are NRIs eligible for coverage under PMJJBY?
Ans : Any NRI having an eligible bank account with a bank branch located in India is
eligible for purchase of PMJJBY cover subject to fulfilment of the terms and
conditions relating to the scheme. However, in case a claim arises, the claim benefit
will be paid to the beneficiary/ nominee only in Indian currency.
Q16. Which Bank Accounts are eligible for subscribing to PMJJBY?
Ans : All bank account holders other than institutional account holders are eligible for
subscribing to PMJJBY scheme.
Q17. Does the PMJJBY cover death resulting from natural calamities such as
Ans : earthquake, flood and other convulsions of nature? What about coverage from
suicide / murder?
All these events are covered as PMJJBY covers death due to any reason.
Q18. Are PMJJBY policies being introduced and serviced in association with
foreign insurance Companies?
Ans : There are no foreign insurance Companies directly operating in India. As permitted
by the Insurance Act and IRDAI regulations there are some foreign Companies in
joint ventures with Indian companies, where the stake of foreign insurers is restricted
to 74% only.
Q.19. Contrary to other life insurance products, benefit under PMJJBY is
payable only to nominee of the insured on the death of the insured. Why is
there no maturity benefit or surrender value, which is available in normal life
insurance policies?
Ans : The cover under PMJJBY is for death only and hence benefit will accrue only to
nominee. PMJJBY is a pure term insurance policy, which covers only mortality with
no investment component. The pricing is also accordingly low when compared to
other life insurance policies where maturity benefits, surrender value etc. are available.
It has been designed to provide life insurance cover to the weaker sections of the
society. With this aim, the premium is kept low, eliminating the investment
component.
Q.20. Will the PMJJBY scheme which is being promoted aggressively and sold
in large numbers accrue huge profits to the foreign insurance Companies who
in joint venture with Indian entities have floated life insurance companies and
are operating this insurance cover?
Ans : Only Indian Insurance Companies as defined in the Insurance Act can operate in
India. The policy holders’ funds of all such insurance companies operating in India
including those with foreign partners within the 74% cap is to be invested in India as
per regulations and cannot be invested abroad. The premium charged for PMJJBY
has been worked out based on actuarial calculations considering all risk factors,
current mortality rates and adverse selection. Thus, there is no scope for any huge
profits accruing from the scheme.
Q.21. Why are foreign insurance Companies associated with PMJJBY when
LIC which is a government owned corporation could have managed this
scheme launched by the government?
Ans : There are 24 Life insurance companies operating in India, who are licensed by IRDAI
to carry on life insurance business in India. To promote competition and better
pricing and service to customers, all these companies are permitted to participate.
Moreover, they are all Indian insurance companies. Their foreign partners, if any,
have only a stake in these companies within the stipulated 74% cap. However, LIC is
still the primary insurer involved in operation of the scheme.
Q.22. In case of non-settlement of claims is it possible to proceed legally
against the foreign insurers in India?
Ans : There are no foreign insurance Companies directly operating in India. As permitted
by the regulations there are Companies operating as joint ventures with Indian
companies, where the stake of foreign insurers is restricted to 74% only. By
definition, these are Indian insurance companies. All these companies are subject to
Indian laws and there is no bar against proceeding legally against them.
Q.23. Rates of premium may be increased, or the Companies may discontinue
the schemes in future.
Ans : Insurance is like any other product. While rates can go up in future, with 24 life
insurance Companies operating in India, due to competition among them, prices are
likely to remain stable. It is expected that with the design of the PMJJBY cover and
it’s pricing, the scheme will be viable, and there is little chance of discontinuing. In
any event, even if a particular company discontinues, banks have several other
options to tie up with.