Insurance Cover Scheme for Jan Dhan Account Holders

Insurance Cover Scheme for Jan Dhan Account Holders

” Pradhan Mantri Jan Dhan Yojana” (PMJDY) scheme was launched on 15th August, 2014 by the honorable Prime Minister India. Now, the central government is planning to initiate a new scheme for the Jan Dhan Account holders to grant them with an insurance cover of up to Rs. 2 Lacs for three years.

Under the Scheme:

  • The insurance cover under this scheme would be provided free of cost,
  • There is no need to pay any anything to avail the scheme benefits;
  • All one needs to have is a savings bank account opened under the Pradhan Mantri Jan Dhan Yojana.

The main objective of the new insurance scheme for Pradhan Mantri Jan Dhan Yojana Account holders:

  • The main aim is to push the social security net for the poor.
  • At present, there are about 27 Crore Jan Dhan account holders in the country who will be benefited by the insurance scheme.
  • Out of these 27 Crore Jan Dhan Account holders, 16 Crore accounts have been seeded with the Aadhaar number of the account holder and rest will be seeded soon to ensure that the welfare payments reach the right recipients in time.

The scheme is not finalized up till yet. The reason for the delay could be the cost or the premium that the government has to pay to the insurance companies. This amount shall reach up to as big as rupees 9000 Crore. This amount accounts for providing both life insurance and health insurance cover to all Jan Dhan Account holders.

Three social security schemes are already been running named Pradhan Mantri Suraksha Bima Yojana (PMSBY), Pradhan Mantri Jeevan Jyoti Bima Yojana (PMJJBY) and Atal Pension Yojana (APY) which were launched in 2014. As per the official data, 3.06 crore people have been enrolled under PMJJBY and 9.72 crore under PMSBY.

The premium amount under the PMJJBY is just Rs. 330 per year while the 2 lakh accidental cover is available at a premium of just Rs. 12 per year under Pradhan Mantri Suraksha Bima Yojana (PMSBY).

The new insurance scheme can be implemented and cover would be provided immediately by the insurance companies to all Jan Dhan account holders once the government reaches any conclusion.

Following are the features and eligibility conditions, if the scheme finalizes, to get life insurance coverage under PMJDY Scheme:

  • The eligible Age group is 18 completed to 59
  • Person opening a Bank account for the first time (with RuPay Card) during the period from 15th August 2014 to 26th January 2015 is eligible to get life cover. This period can be extended by the Government
  • The Life cover of Rs 30,000 will be available from 26th January, 2015
  • Only Head of the family is covered under thisc
  • In case the head of family is 60 years or more of age, the second earning person of the family in the above mentioned age group will be covered
  • In case of joint Account holders under PMJDY, the first account holder (primary account holder) will be provided Life Insurance cover
  • The Bank account holder’s account must have Ru-pay debit card linked to his/her Aadhaar number.
  • For the coverage to be effective the RuPay Card should be valid and in force
  • Only one person in the family will be covered in the Bima Scheme and in case of the person having multiple cards / accounts the benefit will be allowed only under one card i.e. one person per family will get a single cover of Rs.30,000.
  • The life cover of Rs 30,000/- under the scheme will be initially for a period of 3 years. Thereafter, the scheme will be reviewed and terms and condition of its continuation, including the issue of future payment of premium by the insured thereafter, would be suitably determined.
  • Employees (in service or retired) of central and state governments, Public Sector undertakings, Public sector Banks, are not eligible for this scheme
  • Persons whose income is taxable under I.T. Act 1961 or are filing the yearly Income Tax return or in whose case TDS is being deducted from the income, and their families are also not eligible
  • Government has started a scheme called “Aam Admi Bima Yojana.” The individuals covered under this scheme will get Rs 30000 as life cover and Rs 70,000 as accident cover. So, Persons/families who are included in AABY are not eligible for PMJDY life cover.

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