PMJJBY- Pradhan Mantri Jeevan Jyoti Bima Yojana

PMJJBY: Affordable Life Insurance for All

Pradhan Mantri Jeevan Jyoti Bima Yojana (PMJJBY) is a government-backed life insurance scheme that aims to provide financial security to families across India. Launched in 2015 by the Government of India, the scheme offers a simple and low-cost life insurance plan through participating banks and insurance providers making it accessible to individuals with basic banking facilities.

This article explains the PMJJBY scheme in detail, including eligibility, benefits, enrollment process and coverage details.

Overview of PMJJBY

PMJJBY is designed as a renewable one-year life insurance plan covering death due to any cause. Its purpose is to provide affordable life insurance to a large population, ensuring families are financially protected in unfortunate events. The scheme is managed by Life Insurance Corporation (LIC) of India and other approved life insurance providers working in coordination with participating banks.

Features of Pradhan Mantri Jeevan Jyoti Bima Yojana

1. Low-Cost Premium: PMJJBY requires an annual premium of INR 330, making it highly affordable for low and middle-income groups.
2. Simple Enrollment: Account holders in participating banks aged between 18 to 50 years can join PMJJBY. Aadhaar serves as the primary identification (KYC) for enrollment.
3. Death Coverage: The scheme covers death due to any cause, providing a benefit of INR 2 lakh to the beneficiary.
4. Auto-Renewal: PMJJBY renews annually through an auto-debit process from the savings account of the policyholder, making it convenient and accessible.

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Eligibility for PMJJBY

The following criteria must be met to enroll in PMJJBY:

• Age: Between 18 and 50 years (can continue coverage up to age 55 with annual renewals).
• Bank Account: The individual must hold a savings account with a participating bank.
• KYC Requirement: Aadhaar is the primary KYC requirement for enrollment.
• Single Account: In cases where an individual holds multiple savings accounts, they can enroll only once using a single account.

How to Apply for Pradhan Mantri Jeevan Jyoti Bima Yojana

To apply for the Pradhan Mantri Jeevan Jyoti Bima Yojana (PMJJBY), follow these steps:

1. Visit Your Bank: Go to your nearest bank branch that participates in the PMJJBY scheme. Most major banks offer this plan including public sector and private banks.
2. Fill Out the Application Form: Request the PMJJBY enrollment form or download it from your bank’s website. Complete it with necessary details including your Aadhaar number for KYC verification.
3. Submit Auto-Debit Authorization: Sign the form to authorize the annual auto-debit of the premium (INR 330) from your linked savings account.
4. Self-Certification of Health (if applicable): If you’re joining late or re-enrolling after exiting, you may need to submit a self-declaration of good health.
5. Receive Confirmation: Once processed your enrollment is confirmed and the premium is debited annually on or before May 31.

Many banks also offer the option to enroll online or through mobile banking. Check your bank’s specific enrollment options for a quicker process.

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Benefits Under PMJJBY

The PMJJBY scheme provides a life insurance cover of Rs 2 lakh to the nominee on the death of the policyholder irrespective of the cause. This amount provides the necessary financial support to the family that helps cover immediate expenses and maintain financial stability.

Enrollment Process for PMJJBY

1. Initial Enrollment Period:

• The first enrollment period allowed individuals to join between June 1, 2015 and May 31, 2016, but the scheme has continued with annual renewal.
• Individuals need to submit an auto-debit consent form to authorize the bank to deduct the premium amount annually.

2. Enrollment and Renewal:

• New policyholders or previous participants can join the scheme between June 1 and May 31 each year. Late enrollment is allowed up to August 31 of the respective year with a full annual premium and a self-certification of good health.

3. Rejoining After Exit:

• Individuals who discontinue their enrollment can rejoin by submitting a self-declaration of good health and paying the full premium.

4. Auto-Debit Process:

• The premium is auto-debited annually from the savings bank account linked to the policy. Individuals also have the option to provide a one-time mandate, enabling auto-debit each year until the scheme ends.

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Termination Conditions

The life insurance cover under PMJJBY ends under the following conditions:

• The policyholder reaches the age of 55.
• Closure or insufficient balance in the savings account to pay the annual premium.
• Duplicate enrollment across multiple accounts. If premiums are paid through more than one account, the benefit remains limited to INR 2 lakh and additional premiums are forfeited.
• In case of lapsed coverage due to insufficient balance the individual can re-enroll by paying the full premium and providing a satisfactory health declaration.

Administration and Policy Holding

Participating banks serve as the master policyholders, coordinating with LIC and other insurers to manage policy administration, premium collection and claim processing. The banks handle data processing, auto-debiting the premium and storing enrollment forms and declarations. LIC and other insurance providers reserve the right to request these documents in case of a claim.

Annual Review and Adjustments

PMJJBY’s premium rates are subject to annual review based on claim experience. However, the government has stated that unless faced with extreme circumstances the premium will not increase for the first three years, making it a stable option for policyholders.

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Coverage Period and Renewal Dates

The scheme operates on an annual basis with a renewal period starting on June 1 each year. The next annual renewal date is June 1 of the following year ensuring uninterrupted coverage for policyholders.

Claim Process and Settlement

In case of the policyholder’s death, the nominee can claim the insurance amount by following these steps:

1. Submit a Claim Form: The nominee submits a completed claim form to the bank where the policyholder held an account.
2. Provide Necessary Documents: The nominee must provide relevant documents, including the death certificate and the insured’s PMJJBY policy details.
3. Claim Settlement: Once verified, the insurance provider processes and disburses the claim amount to the nominee’s bank account.

Administrative and Operational Expenses

The premium of INR 330 is divided as follows:

• Insurance Premium: INR 289 is allocated to the insurance provider, primarily LIC or other approved insurers.
• Bank Expenses: INR 11 is allocated to the participating bank for administrative expenses.
• Agent and Intermediary Fee: INR 30 is reserved for agents and intermediaries involved in enrollment and premium collection.

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Importance of PMJJBY for Financial Inclusion

PMJJBY plays a vital role in promoting financial inclusion by providing access to life insurance at a minimal cost to low-income families. The scheme not only helps families during challenging times but also promotes a culture of financial responsibility and awareness. Its simplicity, affordability and auto-debit facility make PMJJBY accessible even to the rural population who usually do not get access to insurance schemes.

In brief, Pradhan Mantri Jeevan Jyoti Bima Yojana (PMJJBY) is an affordable, inclusive insurance scheme that provides financial support to the families of policyholders in the event of death of the insured. With minimal requirements and an easy-to-follow claim process, PMJJBY aims to enhance financial security for millions of Indian families.

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