Pradhan Mantri Jeevan Jyoti Bima Yojana Policy
Pradhan Mantri Jeevan Jyoti Bima Yojana is basically a term insurance policy which was introduced by the government of India. It was first launched in Kolkata on 9th May 2015 by Prime Minister Narendra Modi.
The aim of the plan is to provide financial security to the needy section and underprivileged on the loss of a family member especially the sole earner. The life cover starts from 1st June of every year until 31st of May of the next year and you can renew the same every year.
Features of Pradhan Mantri Jeevan Jyoti Bima Yojana
- It provides life coverage for 1 year along with the renewable option of every year.
- With the same, you get a life cover of INR 2 lakhs for a nominal premium of INR 330 per annum.
- As it is a pure term insurance, there will be no maturity benefit in this plan.
- After 45 days of enrolment your cover will start, but on death due to an accident, the sum assured will be paid.
- You can buy the plan through participating banks which have tie-ups with LIC and other private insurance companies in India.
- Insured should have a savings bank account to get enrolled in this scheme.
- It is a government-backed term insurance plan making claim settlement easy and trustworthy.
- It is simple to re-join the scheme if one has withdrawn from the scheme before for any reason.
- It is easy to understand and does not have any complications.
Benefits of Pradhan Mantri Jeevan Jyoti Bima Yojana
- Death Benefit: The plan offers the needful coverage of INR 2,00,000 on the death of the policyholder because of many reasons.
- Maturity Benefit: It is a pure term insurance plan that provides coverage against death benefit and hence there is no maturity benefit available.
- Risk Coverage: Pradhan Mantri Jeevan Jyoti Bima Yojana plan offers coverage against risk of life. The death benefit amount is given to the nominee of the policyholder on the occurrence of death because of any reasons after the 45 days of the cooling period clause. If death takes place because of an accident then there will be no cooling period and the death benefit will handover to the nominee.
- Tax Benefit: Tax benefit can be availed on the premium paid under this policy under section 80 c of the Income Tax Act.
Eligibility of Pradhan Mantri Jeevan Jyoti Bima Yojana
|Minimum entry age||18|
|Maximum entry age||50|
|Maximum coverage age||55|
|Policy term||1 year|
|Compulsory bank account||Yes|
|Coverage period||1st June to 31st May|
|Sum assured||INR 2,00,000|
Other Details of Pradhan Mantri Jeevan Jyoti Bima Yojana
- There cooling off period will be of 45 days, in this plan after which the coverage starts. However, accident cases are exempt from this cooling off period clause
- The policy will automatically get terminated on the closure of the bank account
- The plan is limited to only one policy - per policyholder.
- The premium will automatically get deducted from the bank account of the policyholder between May 25 and May 31 every year
- If the insurance cover gets terminated because of a few reasons it can be reinstated by paying the full premium and with a proof of good health.
Under PMJJBY, the cover period is the 1st June to 31st may of the subsequent year. To avail in the same, consumers have to send the consent for auto debit by 31st May 2018. Those joining subsequently would be able to do so with payment of full annual premium for prospective cover.
As of May 14, 2018, around 5.35 crore people had already registered themselves under PMJJBY, and the total number of claims received till date were nearly 1,02,849.
PMJJBY is available for all those who fall in the age group of 18 to 50 years ( life cover up to age 55) and owns a savings bank account who give their consent to join and enable auto-debit.
Under PMJJBY scheme, life cover of Rs. 2 lakhs is available at a premium of Rs.330 per annum per member and he/she can renew the same every year. In the case of a joint account, all holders can join the policy.
This is how the break-up of the premium works
- Insurance Premium to the insurance company: Rs.289 per annum per member.
- Reimbursement of expenses to agent/bank: Rs.30 per annum per member.
- Reimbursement of administrative costs to the participating bank: Rs.11 per annum per member.
You can get PMJJBY through LIC and several other life insurance companies. You can also contact your banks for the easy enrollment. NO matters how many bank accounts you hold, you would be liable to get yourself registered under this health insurance plan with a single account only. You can renew your policy every year. However, the renewal date will remain June 1 for all of the subscribers.
It's better to join as early as possible to get the cover for the entire year. If you had quit the scheme at any point, you may still re-join the scheme by paying the annual premium.
The enrolment process is very simple and easy. To register yourself, you can download the form and submit it to your banker. Some banks have also started an SMS-based enrolment process too. You can do the same through net banking also.
All the death claims will get settled by the designated office of the insurance company. The process will be:-
Steps To Be Taken By The Nominee
- The beneficiary has to approach the bank wherein the member holds a 'savings bank account' through which he/she was covered under PMJJBY, along with the death certificate of the member.
- beneficiary have to collect claim form, and discharge receipt, from the bank or any other source such as insurance company branches, hospitals, insurance agents etc., including from designated websites.
- The nominee have to provide a completed claim form, discharge receipt, death certificate along with a photocopy of the cancelled cheque of the nominee's bank account(if available) or the bank account details to the bank wherein the member was having the 'savings bank account' through which he/she was covered under PMJJBY.
Steps To Be Taken At The Designated Office Of Insurance Company
- Check that the claim form is complete in all respects and all the relevant documents have been attached. If not, take up with the Bank concerned.
- If the claim is admissible, the designated office of the insurer shall check whether the member's coverage is in force and no death claim settlement has been effected for the member through any other account. In case any claim has been settled, then the nominee shall be intimated accordingly with a copy marked to the bank.
- In case the coverage was in force and no claim has been settled for the said member, payment shall be released to the nominee's bank account and a communication shall be sent to the nominee with a copy marked to the bank.
- Maximum time limit for the insurance company to approve claim and disburse money is thirty days from the receipt of the claim from the bank.
In the case where the claim form is directly submitted to the insurance company, then the insurer will make sure to pass it on to the concerned bank of the deceased account holder instantly to get necessary verification etc. done from the bank concerned. The bank branch will pass it on to the designated office of the insurance company for processing the claim.