The PMJJBY full form is Pradhan Mantri Jeevan Jyoti Bima Yojana. It is a government-backed life insurance scheme. It was originally announced in February 2015 through the Budget speech by Finance Minister Arun Jaitley.
Hon’ble Prime Minister Narendra Modi launched the PMJJBY scheme nationally in Kolkata on 9th May 2015. In this post, I will tell you all about Pradhan Mantri Jeevan Jyoti Bima Yojana.
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Pradhan Mantri Jeevan Jyoti Bima Yojana (PMJJBY)
PMJJBY scheme is a one-year life insurance scheme, renewable from year to year, offering life insurance cover for death due to any cause. It is available for people between the age group of 18 to 50 years and has a savings bank account.
PMJJBY insurance is a term insurance policy that covers only mortality without any maturity or surrender value. It provides insurance cover of Rs.2 lakhs in case of the death of the insured person.
The one year policy period stretching from 1st June of each year to 31st May of the subsequent year.
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Features of PMJJBY Scheme
The following are some of the key features of the Pradhanmantri Jeevan Jyoti Yojana.
1. Pradhanmantri Jeevan Jyoti Bima Yojana is a pure term insurance policy.
2. PMJJBY policy provides life insurance cover for one year and is renewable from year to year.
3. The enrollment period of the scheme is 1st June of each year to 31st May of the subsequent year.
4. The scheme is available to people in the age group of 18 to 50 years having a bank account.
5. Risk coverage under this policy is for Rs.2 lakh in case of death of the insured.
6. PMJJBY policy offers life insurance coverage at a nominal premium of Rs.330 every year.
7. You can renew the PMJJBY insurance every year up to the age of 55 years.
8. There is no maturity or surrender value in Pradhanmantri Jeevan Jyoti Yojana.
9. You can exit from the scheme at any point and re-join it by paying the annual premium and submitting a self-declaration of good health.
10. PM Jeevan Jyoti Bima Yojana offers a simple and hassle-free claim process.
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Pradhan Mantri Jeevan Jyoti Bima Yojana Benefits
The following are the benefits of the PMJJBY policy.
1. Death Benefit
PMJJBY scheme offers a death benefit of Rs.2 lakh on the death of the policyholder due to any cause.
2. Maturity Benefit
Pradhan Mantri Jeevan Jyoti Yojana is a pure term insurance policy, it does not offer any maturity or surrender value.
3. Risk Coverage
PM Jeevan Jyoti Bima Yojana plan provides risk coverage for one year period stretching from 1st June to 31st May and renewable from year to year.
4. Tax Benefit
The premium paid towards Pradhanmantri Jeevan Jyoti Bima Yojana is eligible for tax deductions under Section 80C of the Income Tax Act.
Eligibility of Pradhan Mantri Jeevan Jyoti Bima Yojana
The eligibility criteria of PMJJBY scheme are mentioned below:
1. PMJJBY policy age limit is 18 to 50 years (life cover up to age 55).
2. Any person in the age of 18 to 50 years having a savings account in participating can join the scheme.
3. In the case of multiple bank accounts in one or different banks, you can join the scheme through one bank account only.
4. All the holders of a joint account can also join the scheme provided they meet the eligibility criteria and pay the premium of Rs.330 per person every year.
5. All bank account holders other than institutional account holders are eligible for the PMJJBY scheme.
How to enroll for the PMJJBY policy?
You can get PMJJBY insurance via LIC or any other private life insurance company in India. The process to enroll in the PMJJBY scheme is very simple and easy.
You can download the PMJJBY form and submit it to your bank if your bank is tied up with insurance companies. You can also enroll for Pradhan Mantri Bima Yojana online if your bank is offering the facility. Some banks also started SMS and Phone Banking services for enrollment.
If you have multiple bank accounts in one or different banks then you can join the scheme through one bank account only. The bank auto-debit the premium from the savings account.
You can exit the scheme at any point and re-join the scheme in future years by submitting a self-declaration of good health. Note that the PMJJBY renewal date is the 1st of June for all of the subscribers.
Click here for the Pradhan Mantri Jeevan Jyoti Bima Yojana form.
Waiting period for claims
PMJJBY policy has a waiting period of 45 days after which the risk coverage begins. In other words, insurance benefits will not be available for death (due to any cause other than accident) during the first 45 days from the date of enrolment. However, the waiting period is exempted in case of accidental deaths and the sum assured is paid immediately.
Claim Settlement Procedure under PMJJBY Policy
The death claim benefit of Rs.2 lakh will be settled by the designated Office
of Insurance Company concerned. Let’s take a look at the process followed:
Steps taken by the Nominee
1. Nominee to approach the bank wherein the policyholder was having bank savings account through which the policyholder was covered under PMJJBY. The nominee also needs to submit the death certificate of the policyholder.
2. Nominee needs to collect the claim form and discharge receipt from the bank or any other designated source like insurance company branches or designated websites.
3. Nominee needs to submit a duly filled claim form, discharge receipt, policy holders death certificate, and photocopy of the canceled cheque of the nominee’s bank account or the bank account details to the bank.
Steps taken by the Bank
1. Upon receipt of claim form the bank will check whether the cover for the said policyholder was in force on the date of his death.
2. Bank verifies the documents and fills in the relevant columns of the claim form.
3. Bank submit the following documents to the designated insurance company.
- Duly filled claim form
- Death certificate
- Discharge receipt
- Photocopy of canceled cheque of the Nominee (if available).
4. Maximum time limit for Bank to forward it to the insurance company is 30 days from the submission of the claim to it.
Steps taken at the designated office of Insurance Company
1. Verifies the claim form and all the documents.
2. After successful verification of the claim, payment shall be released to the Nominee’s bank account and communication shall be sent to the nominee with a copy marked to the bank.
3. Maximum time limit for the insurance company to approve the claim and disburse money is 30 days from the receipt of the claim from the bank.
In case the claim form is directly submitted by the nominee to any office of the insurer, then the insurance company will forward the same to the concerned bank for necessary verification, etc. The bank branch will forward the claim form to the insurance company for processing the claim.
Final Thoughts
The Pradhan Mantri Jeevan Jyoti Bima Yojana is a great initiative by the Government of India. PMJJBY policy offers financial security to the family members in case of the unfortunate demise of the insured person. In my opinion, the PMJJBY scheme is one of the best insurance policies for those individuals who have a low income.
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