What is Pradhan Mantri Jeevan Jyoti Bima Yojana?
Pradhan Mantri Jeevan Jyoti Bima Yojana is a government-backed Life insurance scheme in India. It was formally launched by Prime Minister Narendra Modi on 9 May in Kolkata. It was originally mentioned in the 2015 Budget speech by Finance Minister Arun Jaitley in February 2015As of May 2015, only 20% of India’s population has any kind of insurance, this scheme aims to increase the number.
Available to people in the age group of 18 to 50 and having a bank account. People who join the scheme before completing 50 years can, however, continue to have the risk of life cover up to the age of 55 years subject to payment of premium. The scheme will be offered by Life Insurance Corporation and all other life insurers who are willing to join the scheme and tie-up with banks for this purpose.
This scheme will be linked to the bank accounts opened under the Pradhan Mantri Jan Dhan Yojana scheme. Most of this account had zero balance initially. The government aims to reduce the number of such zero balance accounts by using this and related schemes. In a case of multiple saving bank accounts held by an individual in one or different banks, the person would be eligible to join the scheme through one savings bank account only.
Plan at a Glance
- Age at Entry: Minimum: 18 years (Age last birthday)
- Maximum: 50 years (Age nearest birthday)
- Maximum Maturity Age: 55 years (Age nearest birthday)
- Policy Term: One-year renewable
- Sum Assured: Rs. 200,000 (Two lakh only)
- Premium Amounts Rs. 330 /- (Exclusive of Service tax* and inclusive of Rs. 41 towards administrative charges of participating banks).
- Lien Period: 45 days from the date of enrolment into the scheme (entry date/date of commencement of insurance cover)
- Protection at an affordable cost
- Instant processing: No medical examination required
- Easy enrolment: Enrolment based on a simplified proposal for
Benefits of Pradhan Mantri Jeevan Jyoti Bima Yojana
Rs.2 lakh is payable on member’s death due to any reason .If the Scheme Member dies during Insurable Membership, subject to Policy being in force and all due Premiums, Service Tax and any Other Levies (if any) having been paid and subject to any restrictions or qualifications referred to in these Clauses, the amount specified as the Sum Assured for such Scheme Member shall become due to the Nominee of the Scheme Member. No Maturity benefit is payable under the policy. No Surrender benefit is payable under the policy.
- Various other Ministries can co-contribute premium for various categories of their beneficiaries out of their budget or out of Public Welfare Fund created in this budget out of unclaimed money. This will be decided separately during the year.
- Common Publicity Expenditure will be borne by Government.
The termination of assurance under Jeevan Jyoti Bima Yojana
- The assurance would be terminated in the event of subscriber attaining an age of 55 years. The joining of the scheme after the age of 50 is however not possible.
- The assurance and benefits would be terminated in case of closure of the savings account.
- The cover would be terminated with all except one bank account if the subscriber has more than one saving account and more than one PMJJBY are running on those saving account. Only one has insurance cover is allowed per individual.
- The scheme would be terminated immediately if the subscriber fails to maintain a minimum balance of the saving account at the time of auto-debit. The scheme, however, could be reinstated on payment of the full premium and certificate of a good health.