Pradhan Mantri Jeevan Jyoti Bima Yojana: Features, Eligibility of PM Jeevan Jyoti Bima Yojana Scheme

Pradhan Mantri Jeevan Jyoti Bima Yojana: The Pradhan Mantri Jeevan Jyoti Bima Yojana, initiated by India's central government, provides the poor and low-income sections of society with life coverage. The plan offers an overall guaranteed amount of Rs.2 lakhs. Pradhan Mantri Jeevan Jyoti Bima Yojana is a life insurance scheme that is renewable year after year and provides coverage for death. PM Jeevan Jyoti Bima Yojana was created to provide the poor and low-income sections of the society with life insurance security. People aged between 18 years to 50 years can take advantage of this PM Jeevan Jyoti Bima Yojana scheme. People must have a Bank account to apply for the Pradhan Mantri Jeevan Jyoti Bima Yojana Scheme.

Updated: May 24, 2020 11:41 IST

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Niranjani Jesentha Kumari P

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Who can apply for the Pradhan Mantri Jeevan Jyoti Bima Yojana Scheme?

PM Jeevan Jyoti Bima Yojana was established to provide the poor and low-income sections of the society with life insurance coverage. Individuals aged 18 years and 50 years will take advantage of this scheme. To be eligible for Pradhan Mantri Jeevan Jyoti Bima Yojana, they must have a Bank account. Anyone who completes the program before completing 50 years, will be entitled to premium charge at the cost of life cover up to 55 years of age. The beneficiary is also obliged to connect their aadhar card to their bank accounts when making use of this scheme.

What are the benefits of Pradhan Mantri Jeevan Jyoti Bima Yojana Scheme?

Three social security schemes were introduced by PM Narendra Modi, such as Pradhan Mantri Suraksha Bima Yojna, Pradhan Mantri Jeevan Jyoti Bima Yojana and Atal Pension Yojana. The Pradhan Mantri Jeevan Jyoti Bima Yojana was initiated by India's central government, which provides the poor and low-income sections of society with life coverage. The PM Jeevan Jyoti Bima Yojana Scheme offers an overall guaranteed sum of Rs.2 lakhs. Here are some of the benefits of the Pradhan Mantri Jeevan Jyoti Bima Yojana Scheme.

  1. In the event of the insured person's death, a death benefit with a death allowance of Rs. 2.00,000 is given to the next eligible beneficiary. 

  2. The Pradhan Mantri Jeevan Jyoti Yojana is a pure term insurance policy and provides no maturity.

  3. The Pradhan Mantri Jeevan Jyoti Bima Yojana scheme also offers a 1-year risk cover that can be extended annually. Insurance holders may also opt for the long term through the auto-debit option that is connected to their account. 

  4. The Pradhan Mantri Jeevan Jyoti Bima Yojana scheme also offers a tax deduction on the monthly premium paid under section 80C.

  5. Rs. 2 lakhs' life cover will be provided for a period of one year stretching from 1 June to 31 May and will be renewable. 

  6. The premium for this Pradhan Mantri Jeevan Jyoti Bima Yojana scheme is Rs. 330 per year, which is to be debited automatically in one installment before 31 May of each scheme's annual coverage period.

Enrolment period

The protection period is from 1 June of each year until 31 May of the following year. Subscribers are required to enroll for the cover period 1 June 2018 to 31 May 2019 and give their auto-debit consent by 31 May 2018. Those eventually joining will be able to do so with full annual premium payment for prospective cover. Almost 5.35 crore people had enrolled under PM Jeevan Jyoti Bima Yojana as of May 14, 2018, and the total number of claims submitted to date was almost 1,02,849. Pradhan Mantri Jeevan Jyoti Bima Yojana is open to people between 18 and 50 years of age (life cover up to 55 years of age) with a savings bank account who agree to enter and require auto-debit.

Under the Pradhan Mantri Jeevan Jyoti Bima Yojana (PMJJBY) scheme, Rs . 2 lakhs life cover is available at a premium of Rs.330 per annum per holder and is annually renewable. Both holders of the said account will enter the scheme in the case of a joint account provided they meet their eligibility requirements and pay the premium at the rate of Rs.330 per person per year.

How does the breakup of the Premium insurance works? 

  1. Premium insurance to the insurance company: Rs.289 per member per annum 

  2. Reimbursement of Agent / Bank expenses: Rs.30 per member per annum 

  3. Remuneration of administrative expenses to the participating bank: Rs.11 per member per annum

Waiting period for claims

Risk cover under Pradhan Mantri Jeevan Jyoti Bima Yojana shall only be available for the first 45 days of enrolment. In other words, insurers are not expected to resolve claims within the first 45 days from the enrolment date. Deaths from injuries, though, will be removed from the lien provision, and will, therefore, be charged.

About Enrolment

LIC and other private-life insurance firms manage Pradhan Mantri Jeevan Jyoti Bima Yojana in India. Some can also approach their bankers as they have joined up with insurance firms for the cycle of enrolment banks. In the case of several bank accounts held by an individual in one or several banks, the individual will be entitled to enter the scheme only through one bank account. This may also be the case for those who want to join the program now. Through charging the full premium and not the proportionate fee, one can enter or renew the scheme anytime during the year. However, the renewal deadline for all subscribers will remain June 1st. It's best to enter now and get the cover for the whole 12 months.

The enrollment method was kept clear and straightforward. You should download the form and give it to your banker for enrolment. Some banks have also initiated an enrolment process based on SMS. It can also be done via net banking. To join/pay by auto-debit on the specified forms from the designated individual bank account, it will be necessary to offer it by May 31st of each year.

Steps for Claim Settlement:

The death claim shall be settled by the respective designated insurance company office. The ensuing process will be as follows:

Steps to be taken by the Nominee

  1. Nominee to contact the bank in which the member had the 'savings bank account' for which he / she was covered under PM Jeevan Jyoti Bima Yojana along with the member's death certificate.

  2. Nominee to receive claim form and receipt of discharge from the bank or from any other specified source such as branches of insurance companies, hospitals, insurance brokers, etc., even from approved websites.

  3. Applicant to send properly completed claim form, discharge receipt, death certificate along with a photocopy of the nominee's cancelled bank account check(if available) or bank account information to the bank where the applicant had the 'savings bank account' from which he/she was protected by PM Jeevan Jyoti Bima Yojana.

Steps to be taken by the Bank

Upon receipt of the death intimation, the Bank would verify whether the cover for that member was in place on the date of his death, i.e. if the premium for that cover was withdrawn on the Annual Renewal Date , i.e. June 1st, before the member 's death, and remitted to the insurance company concerned.

Bank to check the claim form & candidate information from the documents available to them and to fill out the relevant claim form columns.

Bank to send to the appointed office of the insurance company concerned the following documents: 

  1. Claim Form 

  2. Certificate of Death 

  3. Deposit Receipt 

  4. Photocopy of Nominee's Canceled Cheque (if available).

The maximum time period for the bank to submit to the insurance firm the properly completed application form is thirty days from the submission of the petition.

Steps to be taken at the designated office of Insurance Company

Verify-in all respects that the Claim form is complete and that all relevant documents have been added. If not, then pick on the Bank concerned.

When the claim is admissible, the insurer's appointed office shall verify that the policy of the member is in place and that no settlement of death claims has been rendered for the member by any other account. When an argument has been settled then the applicant shall be intimated with a copy labelled on the bank accordingly.

In the event that the coverage is in effect and no claim has been settled for the said member, payment shall be released to the bank account of the nominee, and communication shall be sent to the nominee with a copy marked with the bank.

The insurance company's fixed time period for authorizing claim and disbursing money is thirty days from the bank 's receipt of the claim. In the event that the claim form is forwarded directly by the applicant to any insurer's office, then the insurer's office will immediately forward the same to the deceased account holder 's bank concerned in order to obtain required documentation, etc. from the bank concerned. The bank branch concerned shall forward the claim form to the insurance company 's assigned office for the processing of the claim. 

Pradhan Mantri Jeevan Jyoti Bima Yojana- FAQ

1. What is all about Pradhan Mantri Jeevan Jyoti Bima Yojana Scheme?

The Pradhan Mantri Jeevan Jyoti Bima Yojana, initiated by India's central government, provides the poor and low-income sections of society with life coverage. The plan offers an overall guaranteed amount of Rs.2 lakhs. Pradhan Mantri Jeevan Jyoti Bima Yojana is a life insurance scheme that is renewable year after year and provides coverage for death.

2. Who can apply for the Pradhan Mantri Jeevan Jyoti Bima Yojana Scheme?

PM Jeevan Jyoti Bima Yojana was established to provide the poor and low-income sections of the society with life insurance coverage. Individuals aged 18 years and 50 years will take advantage of this scheme. To be eligible for Pradhan Mantri Jeevan Jyoti Bima Yojana, they must have a Bank account. Anyone who completes the program before completing 50 years, will be entitled to premium charge at the cost of life cover up to 55 years of age.

3. What is Enrolment?

Risk cover under Pradhan Mantri Jeevan Jyoti Bima Yojana shall only be available for the first 45 days of enrolment. In other words, insurers are not expected to resolve claims within the first 45 days from the enrolment date. Deaths from injuries, though, will be removed from the lien provision, and will, therefore, be charged.

4. What is the waiting period for claims?

Risk cover under Pradhan Mantri Jeevan Jyoti Bima Yojana shall only be available for the first 45 days of enrolment. In other words, insurers are not expected to resolve claims within the first 45 days from the enrolment date. Deaths from injuries, though, will be removed from the lien provision, and will, therefore, be charged.

5. What are the benefits of Pradhan Mantri Jeevan Jyoti Bima Yojana Scheme?

Three social security schemes were introduced by PM Narendra Modi, such as Pradhan Mantri Suraksha Bima Yojna, Pradhan Mantri Jeevan Jyoti Bima Yojana and Atal Pension Yojana. The Pradhan Mantri Jeevan Jyoti Bima Yojana was initiated by India's central government, which provides the poor and low-income sections of society with life coverage. The PM Jeevan Jyoti Bima Yojana Scheme offers an overall guaranteed sum of Rs.2 lakhs.