Pradhan Mantri Jeevan Jyoti Bima Yojana: The Narendra Modi government has launched a number of schemes over the past few years to ensure social security of citizens, especially those from the economically lower backgrounds. This comprises many insurance schemes, including the Pradhan Mantri Jeevan Jyoti Bima Yojana (PMJJBY). The scheme offers a coverage of Rs 2 lakh annually. For this, a person just has to pay Rs 436 per year and get the benefits of the scheme. Pradhan Mantri Jeevan Jyoti Bima Yojana is thus a term insurance policy that covers death of the policyholder at low premiums.
Pradhan Mantri Jeevan Jyoti Bima Yojana(PMJJBY): What is It?
As mentioned above, PMJJBY is an insurance scheme offering life insurance cover for death due to any reason. It is a one-year cover, renewable from year to year. The scheme is offered / administered through LIC and other life insurance companies willing to offer the product on similar terms with necessary approvals and tie ups with banks or the post office for this purpose. Participating banks and the post office are free to engage any such life insurance company for implementing the scheme for their subscribers, as per the rules.
An amount of Rs 9,737 crore has been collected by the implementing insurers towards premium and claims of Rs 14,144 crore have been paid under PMJJBY as on March 31, 2022.
PMJJBY Scheme Eligibility
Under this scheme, all individual account holders of participating banks or the post office in the age group of 18 to 50 years are entitled to join. In case of
multiple bank or post office accounts held by an individual in one or different
banks or post office, the person is eligible to join the scheme through one bank or post office account only. Aadhaar is the primary KYC for the bank or post office
account. The account holder also needs to enable auto-debit feature on the account for deduction of premium.
PMJJBY Features and Benefits
-Under this scheme, the policyholder gets term insurance cover of Rs 2 lakh by paying Rs 436 annually, which is payable to the person’s family upon death due to any cause.
-The premium is auto-debited in one installment from the subscriber’s bank account as per the option given by him on or before May 31 of each annual coverage period under the scheme, as per the guidelines.
-The premium is deducted from the policyholder’s account through ‘auto
debit’ facility in one instalment, as per the option given, at the time of enrolment
under the PMJJBY scheme.
-Out of Rs 436, Rs 395 goes to the insurer, while Rs 30 goes to the agent or bank as reimbursement of expenses. The remaining Rs 11 goes to reimbursement of administrative expenses to the participating bank.
-Under the PMJJBY Scheme, the risk cover is applicable after 45 days of signing up for it.