Pradhan Mantri Jeevan Jyoti Bima Yojana (PMJJBY)
The Union Finance Minister, Shri Arun Jaitely presenting the Union Budget 2015-16, said that a large proportion of India’s population is without insurance of any kind – health, accidental or life worryingly, as our young population ages, it is also going to be pension-less. Encouraged by the success of the Pradhan Mantri Jan Dhan Yojana, the Finance Minister proposed to work towards creating a universal social security system for all Indians, specially the poor and the under-privileged.
PMJJBU is a Life Insurance coverage plan. This plan covers both natural and accidental death risk. The maximum sum assured offered under this Govt Scheme is Rs 2 Lakhs. The premium will be Rs. 330 per year, or less than one rupee per day, for the age group 18-50. The scheme will be offered by Life Insurance Corporation (LIC of India). Government is also encouraging the other life insurance companies to offer this scheme. But, Private Life Insurance companies have to tie up with banks like State Bank of India (SBI) etc., to offer this scheme.
In this post, let us go through the details / highlights of Pradhan Mantri Jeevan Jyoti Bima Yojana (PMJJBY Scheme). Features of Govt’s Pradhan Mantri Jeevan Jyoti Bima Yojana :
Who is eligible to take PMJJBY? This life insurance plan is available to people (all citizens) in the age group of 18 to 50 years 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.
When will this Scheme start / open? Pradhan Mantri Jeevan Jyoti Bima Yojana Scheme is now open for subscription for the insurance period (1st June 2015 to 31st May 2016). The last date to apply to this scheme for this insurance period is 31st May 2015 (Govt has extended this deadline till 31st August 2015).
What is the Premium amount? You have to pay Rs.330 per year. It will be auto-debited in one installment.
What is the Premium Payment Mode? The payment of premium will be directly auto-debited by the bank from the subscribers (policyholder’s) account.
What is the total Risk Coverage offered? Rs 2 Lakh will be paid, in case of death for any reason (natural or accidental death).
Terms of Risk Coverage: A person has to opt for the scheme every year (1st June to 31st May). He can also prefer to give a long-term option of continuing, in which case his account will be auto-debited every year by the bank.
Is Nomination facility available? Yes, nomination facility available. In-case of unfortunate event of death of the policyholder, the nominee will get the death benefit.
What are required documents? As per government, a copy of your Aadhar card alone is enough to subscribe to this scheme.
Who will implement this Scheme? Jeevan Jyoti Bima 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.
Will Government contribute to this scheme? 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.
An individual is eligible to join this scheme through one savings bank account only