PMJJBY: The Pradhan Mantri Jeevan Jyoti Bima Yojana

• The Pradhan Mantri Jeevan Jyoti Bima Yojana (PMJJBY) is one of the several ambitious social security programs initiated by Narendra Modi.
• It is basically a term life insurance policy that can be renewed either on a yearly basis or for a longer period of time.
• It will provide life insurance coverage on the death of the policyholder.

Also Read: Pradhan Mantri Suraksha Bima Yojana (PMSBY)

Who is Eligible?

• The Pradhan Mantri Jeevan Jyoti Bima Yojana will be made available to anyone between the age group of 18 to 50 years.
• The concerned person should also have a bank account.
• People, who avail this policy before they are 50 years old, will be allowed to enjoy the risk of life cover till the age of 55 years.
• However, they will need to pay the premium on a consistent basis in order to be provided that benefit.

What is the Premium?

• The policyholders will need to pay INR 330 per year.
• The amount will be deducted each year from their bank account in a single installment.
• This will be done by the bank from where the policy is being opened.

What is the Risk Coverage?

• The risk coverage being provided in the Pradhan Mantri Jeevan Jyoti Bima Yojana is INR 2 lakh.
• In case the policy has been availed for a longer term period than just a year, the amount will be deducted for each year of the agreed term period from their respective bank accounts.

Who will offer the Programme?

• Life Insurance Corporation of India (LIC) will be offering the plan.
• However, other life insurers, who are eager to take part in the programme, can join it through tie-ups with specific banks.
• The banks, whose clients join the programme, will be deemed as the master account holders in case of the PMJJS.
• The LIC or the other insurers will finalize the claims settlement and administration procedures, which are expected to be simple and friendly towards the subscribers. This will be done in consultation with the banks.

How can One Enroll?

• The plan was launched initially from 1 June 2015 till 31 May 2016.
• The subscribers were needed to enroll as well as provide the option for auto debiting their premium on or before 31 May 2015. This date was extended to 31 August 2015.
• If someone wished to enroll after this date they were required to submit a self-certificate, where they state that they are in good health and will also pay the entire annual premium.
• In case someone wanted to continue beyond the first year then they will have to agree to auto debiting by 31 May that year.
• For anyone who renews the policy after this, he or she will need to furnish a self-certificate of good health as well as the entire yearly premium.
• In case someone did not join in the first year, he or she can provide a good health self-certificate and the entire yearly premium.
• The procedure is the same for people who had joined the policy once and then left it, only to come back later and rejoin the same.

When will the Policy be terminated?

• The policy will come to an end once the holder reaches the age of 55 years.
• However, for this to be effective the policyholder will need to keep renewing the policy till that time.
• If the account holder has to close his or her account in the bank, where the policy is being maintained, because of a paucity of sufficient funds to even maintain the minimum balance needed to ensure the policy is active, then the insurance policy will be closed as well.
• If the concerned person has taken more than one such account and the insurer gets the money in an unintended manner, then the said premium will be forfeited.

What Role will the Bank play?

• Apart from being the master account holders and deducting the premium each year, the banks will need to play some other roles as well.
• Their primary duty will be to transfer the deducted premium to the insurers.
• They will also have to take care of the following:

1. Enrollment forms
2. Authorisation of auto-debit
3. Providing declaration-cum-consent form in the exact shape that they are supposed to be done.

• They will get it and keep it as well since, at time of claims, or any other occasion as required by the insurer, they will be supposed to provide it to the insurer

How will the Premium be divided?

• Out of the yearly premium of INR 330, INR 289 will go to the insurer and INR 30 will be reimbursed for the expenses incurred by the BCs, corporate or micro-agents.
• The bank will get INR 11 as compensation for administrative costs incurred by them.