The BuyT Desk
Pradhan Mantri Jeevan Jyoti Bima Yojana (PMJJBY) is a one-year term insurance policy that provides a yearly life insurance coverage of Rs. 2 lakhs. It can be renewed year after year till the insured person reaches the age of 55 years. The Government inaugurated the PMJJBY scheme in 2015 to make more Indians purchase a life insurance cover. The scheme is available to all Indian residents irrespective of their income. This scheme is hugely beneficial for the backward sections as it provides life insurance cover at an affordable premium of Rs. 330 per annum. However, the Government may vary the premium from time to time. This insurance plan aims to give a basic life cover at an affordable price.
Like any term insurance policy, PMJJBY does not offer any maturity benefit. Nonetheless, it provides a higher death benefit for a small premium amount. The bank automatically debits the premium from the insured person’s account on 1st June of the year. The risk cover is available from 1st June to 31st May of the next year. Through the PMJJBY scheme, the Government took a step to ensure that account holders maintain the minimum balance in their bank account. If you have zero balance on 31st May, then you lose the opportunity to subscribe for a Rs 2 lakh life insurance policy or even renew it.
Eligibility Criteria
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Any person between 18-50 years of age having a savings bank account can request the bank to auto-debit the PMJJBY scheme’s premium. If you have multiple bank accounts, you can subscribe to the scheme with only one savings account. In a joint account, all the members can subscribe to the scheme by paying Rs.330 premium yearly per member.
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To avail of benefits allowed by this policy, it is necessary to link your Aadhaar card to the eligible bank account.
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After the initial enrollment period (31st August to 30th November 2015), people who subscribed for the scheme have to submit a medical certificate to prove the absence of a major illness.
Enrolment process
The enrollment process for the scheme has been made easy. LIC or other private life insurance companies in India manage PMJJBY. If a bank is associated with an insurance company, you can also enrol with the bank. To enrol, download the form and submit it to your bank or life insurance company. Some banks have also initiated an SMS based registration process. You can also register for the PMJJBY scheme via net banking.
Claim Settlement
The settlement of death claims will be done by the concerned department of the insurance organization. No claim will be settled within 45 days of buying the policy except in the case of death by accident. For claim settlement, the nominee requires to submit the death certificate of the insured member, duly filled claim form, discharge receipt, and a copy of the cancelled cheque of the nominee’s bank account (if available) or the bank details of the insured member’s bank account to the bank. The bank will forward the documents after verifying the nominee details to the insurance company within 30 days. After verifying the documents and confirming that no claim has been settled for the insured person earlier, the life insurance company releases the payment to the bank. It notifies both the nominee and the bank via a letter.
