The Pradhan Mantri Jeevan Jyoti Bima Yojana is a renewable insurance plan which was launched in the year 2015 for the citizens of the country who have a savings bank account. This scheme provides an annual coverage of Rs. 2 lakh for all the individuals who have signed up for the particular scheme. The PMJJBY stands for Pradhan Mantri Jeevan Jyoti Bima Yojana. The finance minister made the announcement about launch of the scheme in the budget 2015. The PMJJBY is a renewable insurance scheme which was designed to provide yearly life insurance coverage of Rs. 2,00,000 to every savings bank account holder in the case of death due to any reason. The Jeevan Jyoti Bima Yojana scheme was launched with two other insurance schemes, Atal Pension Yojana and Pradhan Mantri Suraksha Bima Yojana for accelerating the insurance penetration in India and provide help to the needy and deserving people. The risk coverage is generally for 1 year. But, the scheme can be renewed after a year as well. Also, the individual can opt for a longer duration than a year in which case, the funds will be auto debited from the individual’s savings account every year. One huge advantage offered by the Pradhan Mantri Jeevan Jyoti Bima Yojana is the death coverage of Rs. 2,00,000 which will be offered to the nominee of the insured person. This scheme was launched for the growth of the poor and low-income section of society. As a pure term insurance plan, this scheme was designed for the betterment of people.
The highlighting features of the Pradhan Mantri Jeevan Jyoti Bima Yojana are listed below:
- This scheme offers a simple and subscriber friendly insurance claim settlement process.
- Death cover offered by the scheme will be ended if a person is covered with more than on account, person is above 55 years, or there is insufficient balance in savings account for keeping the insurance in force.
- Individuals who did not join the scheme in the initial year can join the scheme in subsequent years by submitting a self-certificate of good health and annual premiums.
- This scheme is open for new eligible applicants in coming years.
- Individuals can opt out of the scheme at any time and join the scheme in future.
- The participatory bank will be the master policyholder of the scheme.
- The policy offers coverage for 1 year.
- Renewability is available.
On the launch, the PMJJBY promises to provide a cover from 1st June, 2015 to 31st May 2016. The subscribers will have to enroll by 31st May and accept the auto debit option. However, it can be extended up to 31st August. Joining this scheme after this date will be done on payment of full annual premium and if the person submits a self-certificate of good health. An individual can enroll themselves in a PMJJBY scheme with the help of an authorized insurance company.
The scheme is offered by public life insurance companies like Life Insurance Corporation of India or other general insurance providers with a tie up with banks. PMJJBY schemes are expected to be effective from 1st June.
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