The Pradhan Mantri Jeevan Jyoti Bima Yojana (PMJJBY) is a government-sponsored life insurance initiative in India designed to provide life insurance coverage for deaths occurring from any cause. This scheme offers a one-year term that can be renewed annually. It is facilitated by banks and post offices, with administration carried out by life insurance companies. Eligibility for participation is extended to individuals aged 18 to 50 years who hold accounts with the participating banks or post offices.
Launched on May 9, 2015, by Prime Minister Narendra Modi, the PMJJBY aims to support economically disadvantaged groups, ensuring that families receive financial protection in the event of the insured’s premature death. The policy guarantees a life cover of ₹2 lakhs to the designated nominee, thereby enhancing accessibility for a broad demographic.
Pradhan Mantri Jeevan Jyoti Bima Yojana Eligibility
Age: Individuals must be between 18 and 50 years old (considering the proximity to their birthday).
Savings Bank Account: Applicants are required to possess a savings bank account with a bank or post office that participates in the program.
Aadhaar: The Aadhaar number serves as the primary Know Your Customer (KYC) identification for the bank account.
What are the Coverage and Benefits?
Life Insurance: A sum of ₹2 lakhs will be disbursed to the designated nominee in the event of the policyholder’s death, regardless of the cause. This policy encompasses fatalities resulting from all causes, including but not limited to natural disasters, accidents, and suicide.
Policy Duration: The coverage is valid for one year and can be renewed on an annual basis.
Premium Payment: An annual premium of ₹436 will be automatically deducted from the policyholder’s savings bank account in a single transaction.
Renewal Process: The policy can be renewed each year by providing consent for auto-debit prior to May 31st. Participating banks act as master policyholders, overseeing the administration of the scheme in collaboration with insurance providers.
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What is the enrolment process for the PMJJBY scheme?
- Start by visiting your local branch with your Aadhaar card.
- Complete the application form, ensuring that you provide accurate personal information and nominee details.
- Authorize the auto-debit of the premium from your savings bank account.
- You will receive a policy document or certificate, which serves as confirmation of your enrolment, in the form of an “ACKNOWLEDGEMENT SLIP CUM CERTIFICATE OF INSURANCE.”
The premium amount for enrolment differs depending on the month. If you enroll in June, July, or August, then the full annual premium of Rs. 436/- is required. For enrolments in September, October, or November, the pro-rata premium is Rs. 342/-. If you enroll in December, January, or February, the pro-rata premium is Rs. 228/-. Lastly, for enrolments in March, April, or May, the pro-rata premium is Rs. 114/-. When renewing under the scheme, the full annual premium of Rs. 436/- must be paid.
What will be the claim process?
- To initiate the claim process, the first step is to notify the bank or post office about the policyholder’s passing.
- Following this, it is necessary to provide several important documents, which include the death certificate of the insured, a completed claim form that can be obtained from the bank or post office, the original policy document or certificate, proof of identity for the nominee, and the nominee’s bank account information.
- Once the documents are submitted, the bank or post office will carry out a verification process to ensure everything is in order before forwarding the claim to the insurance company, such as LIC or another participating insurer.
- After the claim is approved, the amount of ₹2 lakhs will be directly transferred to the bank account of the nominee.
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How many accounts have been opened under the PM Jan Dhan Yojana?
How many accounts have been opened under the Pradhan Mantri Jan Dhan Yojana, and what are the demographics of the account holders?
As of now, 53.13 crore accounts have been established under the Pradhan Mantri Jan Dhan Yojana. Among these, 55.6% of the account holders are women, and 66.6% of the accounts are located in rural and semi-urban regions.
This initiative has significantly contributed to integrating economically disadvantaged groups into the banking system. The total amount deposited in Jan Dhan accounts stands at Rs 2,31,236 crore. By August 15, 2024, there has been a 3.6-fold increase in the number of accounts and a 15-fold rise in deposits.
FAQs
What impact have these schemes had on financial inclusion in the country?
The effective execution of these initiatives has bolstered financial inclusion and security across the nation. Prime Minister Narendra Modi’s schemes are designed to empower the impoverished and marginalized communities. The Finance Ministry reports that these programs are reaching all segments of society and are enhancing financial literacy.
What recent updates have been shared regarding the life insurance scheme by the Ministry of Finance?
Earlier this month, the Ministry of Finance announced on X that the scheme has offered ₹2 lakh life insurance coverage to over 21 crore beneficiaries throughout India. According to official statistics, as of October 20, 2024, the total enrollment in the scheme reached 21.67 crore, with a total of 860,575 claims submitted, amounting to ₹17,211.50 crore.
What are the exclusions in the insurance policy?
Suicide is not covered if it occurs within 12 months of enrollment. Additionally, deaths resulting from pre-existing conditions are not covered during the first 45 days of the risk cover period, known as the lien period.
How is the premium allocated?
Out of the total premium of ₹436, ₹395 is allocated to the insurance company, ₹30 is designated for agents involved in new enrollments, and ₹11 is used for administrative costs.
When does the insurance coverage end?
Coverage will cease under the following conditions: when the insured reaches 55 years of age, if the linked bank account is closed, or if there are insufficient funds to maintain the policy. Furthermore, if an individual holds multiple PMJJBY accounts, the insurance coverage will be limited to ₹2 lakhs, and any additional premiums may be forfeited.