Pradhan Mantri Jeevan Jyoti Bima Yojana is a renewable insurance plan for all those with a savings bank account which was launched in 2015. The scheme offers those who have signed up for this particular scheme an annual compensation of INR 2 lakh. PMJJBY stands for Jeevan Jyoti Bima Yojana, a Pradhan Mantri. It has been announced in the 2015 budget.
PMJJBY is a renewable insurance scheme designed to offer INR 2,00,000 annual life insurance coverage to all savings bank account holders at death for whatever cause.
Together with two other insurance schemes, Pradhan Mantri Suraksha Bima Yojana and Atal Pension Yojana, Jeevan Jyoti Bima Yojana was launched to accelerate the penetration of insurance in India and meet the needs of ordinary people.
Key Highlights of PMJJBY
The scheme provides a 1-year coverage.
The scheme offers renew ability.
Individuals can always exit the scheme and join the programme in the future.
The participating bank will become the scheme’s master policyholder.
Offers an easy and user-friendly method for settling insurance claims.
Death cover provided by the policy may expire if the individual is over 55 years old, the participant is covered by more than one bank account, and insufficient savings account balance to hold the plan in place.
Individuals who fail to join the scheme during the initial year may enter the programme through annual premiums in subsequent years and submit a good health self-certificate.
The scheme will be available in future years for new qualifying applicants.
Benefits of PMJJBY
Pradhan Mantri Jeevan Jyoti Bima Yojana primary benefit is the death coverage of INR 2 lakh, which is offered to the insured person’s nominee.
Coverage of PMJJBY
Risk compensation provided by PMJJBY in the event of death caused for any reason is INR 2 lakh.
Terms of risk coverage
Coverage of the risk is usually a year. However, after a year, the scheme can be renewed. You can also opt for a longer duration than one year in which case the bank can auto-debit your savings account annually.
Eligibility criteria
Any holder of a savings bank account between the ages of 18 to 50 can opt for this scheme through participating banks.
One can subscribe to this scheme only through a savings bank, even though they have multiple bank accounts.
Aadhar card that connects to your participatory bank account is mandatory to get the benefits of this program.
Individuals who join the scheme after the initial enrollment period extending until August 31, 2015, or November 30, 2015, will be required to produce a sound health self-certificate stating that they do not suffer from any of the critical illnesses mentioned in the declaration form.
Enrollment procedure
PMJJBY will be providing a cover at launch from June 1, 2015, to May 31 2016. Subscribers must register and accept the auto-debit option by May 31 2015. It is, however, extendable by August 31, 2015.
Premiums
PMJJBY can be purchased by paying INR 330 per annum premium. Through auto-debit option, Premium will be automatically deducted from your savings bank account in one installment. Each month, premiums are due before or on May 31.
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