Pradhan Mantri Jeevan Jyoti Bima Yojana

The Prime Minister of India, Mr. Narendra Modi, has launched various types of social security schemes for the Indian population. The Pradhan Mantri Jeevan Jyoti Bima Yojana is one such scheme which promises to offer insurance coverage to individuals at very affordable premium rates. Let’s study the scheme in details –

What is the scheme about?

The Pradhan Mantri Jeevan Jyoti Bima Yojana is a term insurance scheme wherein coverage is provided against premature death during the term of the policy. The scheme runs for one year after which it can be renewed for continued coverage. Premium is affordable and is payable from the insured’s bank account. The sum assured is paid in case of death during the coverage period.

Coverage features of Pradhan Mantri Jeevan Jyoti Bima Yojana

Here are the coverage features of the scheme –

Coverage is available to individuals aged between 18 years and 50 years.
The maximum cover ceasing age is 55 years
It is a term insurance plan which covers only death during the coverage period. Maturity benefit is not paid under the plan.
Coverage runs for one year starting every year at 1^st June and ending on 31^st May of the following year.
The sum insured under the scheme is INR 2 lakhs
In case of death due to an illness, a period of 45 days would apply as the waiting period. This means that if the insured dies due to an illness within 45 days of availing the policy, the claim would not be paid. In case of accidental deaths, however, there is no waiting period. Such deaths are covered from the first policy day itself.

How does the scheme work?

Here is how the Pradhan Mantri Jeevan Jyoti Bima Yojana scheme works –

Individuals who want to avail coverage under the scheme need to approach their bank with which they have a savings account.
The bank in turn ties-up with an insurance company to provide insurance coverage to its account holders.
Accountholders give approval for auto-debit of premium from their bank accounts.
Following this approval, the bank deducts the premium amount from the account holder’s savings account and coverage is granted
If the insured dies during the coverage period, the sum assured is paid to the nominee.

Premiums payable for Pradhan Mantri Jeevan Jyoti Bima Yojana

The premium for the scheme is payable through the bank account of the insured. The amount of premium is INR 330 only and it is debited from the insured’s bank account through the auto-debit facility. The insured would have to approve the auto-debit facility so that the premium can be debited when the coverage starts and also when it is subsequently renewed. Approval of auto-debit should be given before 1^st June so that the coverage can commence from 1^st June and run for a whole year.

The amount of premium, i.e. INR 330, is appropriated between the bank and the insurance company in the following manner –

INR 289 is paid to the insurance company towards the premium cost of the coverage offered
INR 30 is reimbursed to the bank or the agent who enrolls individuals under the scheme
INR 11 is paid to the bank for its administrative expenses

Points to remember

Though the Pradhan Mantri Jeevan Jyoti Bima Yojana is a simple scheme of insurance, here are some important points which should be remembered –

A savings account is a must to avail the scheme
Coverage runs from 1^st June to 31^st If individuals join the scheme on a later date they can avail coverage. However, the coverage would end on 31^st May and the scheme should be renewed for availing continued coverage. Moreover, even if the individual joins the scheme late, the full amount of premium would be payable.
Individuals having joint accounts can also apply for the scheme
In the case of multiple saving accounts, the scheme can be accessed only through a single account. If the coverage is availed from multiple accounts, the coverage would be terminated and the premiums paid would be forfeited.
The coverage would be terminated if the savings account from where the scheme was availed is closed down. Moreover, if the savings account has insufficient balance for the auto-debit of premium, coverage would be terminated.

How to apply for the scheme?

Interested individuals can apply for the scheme through their banks. The application form is available with the banks and also at the Government’s website http://www.jansuraksha.gov.in/Files/PMJJBY/English/ApplicationForm.pdf#zoom=250. The form can be filled in any language. Details about the insured and the nominee should be mentioned clearly in the application form. Once the form is filled, it should be submitted to the bank. The approval for auto-debit should also be made so that premiums can be deducted. Once the form is submitted and the premium debited, the coverage would start.

How to make a claim under the scheme?

Claim occurs when the insured dies. In that case, the nominee should approach the bank and intimate the death of the insured. A claim form and a discharge receipt should be filled in by the nominee and submitted to the bank along with the death certificate of the insured. The nominee should also submit a copy of his canceled cheque for furnishing his bank account details wherein the claim would be credited.

Once the bank receives the claim intimation, it would check the details of the insured and verify the submitted claim forms. After verifying the documents submitted, the bank intimates the insurance company about the claim. The insurance company also checks the documents submitted by the nominee and once the company is satisfied with the authenticity of the claim, it pays the claim directly to the bank account of the nominee.

The Pradhan Mantri Jeevan Jyoti Bima Yojana is available to anyone who fulfills the age criterion and has a bank account. It can be easily applied and provides affordable coverage. So, understand the details of the scheme before you advise your clients to apply for it.