PMJJBY stands for Pradhan Mantri Jeevan Jyoti Bima Yojana. Finance Minister Arun Jaitley announced the launch of this scheme in the budget 2015. PMJJBY is a renewable insurance scheme designed to offer yearly life insurance coverag of Rs.2, 00,000 to all savings bank account holders on death due to any reason. Jeevan Jyoti Bima Yojana was launched along with two other insurance schemes Pradhan Mantri Suraksha Bima Yojana and Atal Pension Yojana to accelerate insurance penetration in India and cater to the needs of common people.
Key Highlights of PMJJBY
- The policy offers coverage for 1 year.
- Renewability is available.
- Individuals can exit the scheme at any time and join the scheme in future.
- Participatory bank will be the master policyholder of the scheme.
- Offers a simple and subscriber friendly insurance claim settlement process.
- Death cover offered by the scheme will terminate if the person is above 55 years, the member is covered through more than one bank account, and insufficient balance in savings account to keep the insurance in force.
- Individuals who fail to join the scheme in the initial year can join the scheme in subsequent years by annual premiums and submitting a self-certificate of good health.
- The scheme is open for new eligible applicants in the coming years.
Benefits of PMJJBY
The major benefit offered by Pradhan Mantri Jeevan Jyoti Bima Yojana is death coverage of Rs. 2, 00,000 which is offered to the nominee of the insured person.
Risk Coverage by PMJJBY
Risk coverage offered by PMJJBY is Rs. 2, 00,000 in case of death caused any reason.
Terms of Risk Coverage
Risk coverage is normally for 1 year. However, the scheme can be renewed after 1 year. Also, you can opt for a longer duration than a year in which case your savings account will be auto debited by the bank every year.
- Any savings bank account holder between the ages 18 to 50 years can opt for this scheme through participating banks.
- One can subscribe for this scheme through one savings bank only, even if he/she has multiple bank accounts.
- Aadhar card linking to your participatory bank account is mandatory to obtain the benefits of this scheme.
- Individual joining the scheme after the initial enrollment period extending up to 31st August 2015 or 30th November 2015, will have to produce a self-certificate of good health stating that she/he is not suffering from any critical illness mentioned in the declaration form.
On launch, PMJJBY will provide a cover from 1st June, 2015 to 31st May, 2016. Subscribers need to enroll by 31st May, 2015 and accept the auto debit option. However, it is extendable up to 31st August, 2015. Enrollment after this date will be considered on payment of full annual premium and submission of a self-certificate of good health.
PMJJBY can be bought by paying a premium of Rs.330 p.a. Premium will be deducted automatically from your savings bank account in one installment via auto debit option. Premiums need to be paid before or on 31st May of every month. Delayed payments will be accepted under certain terms and conditions. Depending on an annual claim of experience, premiums may be revised.
How to Enroll for PMJJBY Scheme?
You can enroll yourself in a PMJJBY scheme with the help of an insurance company. The scheme will be offered by public life insurance companies like Life Insurance Corporation of India (LIC) or other general insurance providers with a tie-up with banks. PMJJBY schemes are expected to be effective from 1st June, 2015. Participating banks will have the choice of listing any life insurance company for implementing this scheme for their subscribers.
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