Saturday 23 May 2020

Pradhan Mantri Jeevan Jyoti Bima Yojana (PMJJBY)

Pradhan Mantri Jeevan Jyoti Bima Yojana (PMJJBY)
Image Credit: www.jansurakha.gov.in

The Pradhan Mantri Jeevan Jyoti Bima Yojana (PMJJBY) is a one-year life insurance plan. The plan offers coverage for death due to any reason. It is a non-linked, non-participating group term insurance plan. 

The scheme is renewable from year to year. The plan is offered / administered through LIC and other Indian private Life Insurance companies. In this post, let us take a look at Pradhan Mantri Jeevan Jyoti Bima Yojana (PMJJBY).



PMJJBY is available to all the savings bank account holders in the participant banks who give their consent to join and enable auto-debit. The cover under this group term insurance plan is for death only and hence benefit will accrue only to the nominee. 

Note that there is no maturity or surrender benefit under this plan as it is a pure term insurance policy.



Eligibility for Pradhan Mantri Jeevan Jyoti Bima Yojana (PMJJBY)

All the savings bank account holders in the participating banks in the age group of 18 to 50 years are eligible to apply for this scheme. If you are more than 50 years old then you are not eligible to enroll yourself for this scheme. But once you enrolled, you can continue with this scheme till you attain the age of 55 years. 

If you have multiple saving bank accounts in one or different banks then you would be eligible to join the scheme through one savings bank account only. Aadhaar Card is the primary requirement for your KYC under this scheme.



Policy Term for Pradhan Mantri Jeevan Jyoti Bima Yojana (PMJJBY)

Under this scheme the cover is for one year period, starting June 1 to May 31. The plan is renewable from year to year.

Premium Amount for Pradhan Mantri Jeevan Jyoti Bima Yojana (PMJJBY)

An annual premium of Rs. 330/- per member. The premium amount will be deducted from your savings bank account through "auto debit" facility in one installment, as per the option given, on or before May 31 of each annual coverage period under the plan. 

Delayed enrollment for prospective cover after May 31 will be possible with full payment of annual premium. A self-certificate of good health also needs to be submitted. In the case of a Joint account, all the holders of the said account can join this scheme provided they meet the eligibility criteria. 

They need to pay the premium at the rate of Rs. 330/- annum per person. The premium of Rs. 330/- annum is subject to change as specified by the Government of India from time to time.

Benefits under PMJJBY

1. In case of Death: Under this insurance plan, Rs. 2 lakhs will be paid to the nominee on member's death due to any reason. The death benefit for a member under this scheme cannot exceed Rs. 2 lakhs even in case the member is covered through multiple bank accounts to through multiple insurers. 

In such event, the claim will be payable for the first application (based on the date of enrollment) and the premium on the subsequent covers is liable to be forfeited.
2. Other Case: The scheme is Pure Term Insurance Plan, with No maturity benefit or bonus will be applicable payable.

Waiting Period under Pradhan Mantri Jeevan Jyoti Bima Yojana (PMJJBY)

Risk cover is applicable only after 45 days of enrollment into the scheme. In other words, no risk cover is applicable under PMJJBY during the first 45 days from the date of enrollment. However, death due to an accident will be exempt from this clause and claim will be paid.

Master Policy Holder

Participating banks will be the Master Policy holders. A simple and subscriber-friendly administration and claim settlement process shall be finalized by LIC / other insurance company with the participating bank.


Auto Debit Facility

Annual premium of Rs 330 will be deducted from your savings bank account through the auto debit facility. The participating banks are required to recover the annual premium in one instalment from the account holders on or before the due date through "auto debit" facility. Members have to give one-time mandate for auto-debit every year till the scheme is in force.

Tax Benefits

Tax benefits are as per the applicable income tax laws in India. The tax benefits/exemptions are subject to change from time to time.



Toll-Free Numbers for Pradhan Mantri Jeevan Jyoti Bima Yojana (PMJJBY)

National Toll-Free Numbers for this scheme are 1800110001 / 18001801111. You can check the state-wise toll-free numbers list here - State-wise Toll-Free Numbers.





If you liked this post, share it with your friends and colleagues through social media. Your opinion matters, please share your comments.


1 comment: