The Pradhan Mantri Jeevan Jyoti Bima Yojana (PMJJBY) is a government-backed life insurance scheme in India. The announcement was made in the 2015 budget. The one-year life insurance plan is renewable from year to year and provides coverage in the event of a sudden death. For a nominal annual premium of Rs.330, it provides a cover of Rs.2 lakh in the event of a policyholder’s sudden death. There is no investing component to this plan; it is solely an insurance plan. The scheme is offered by the Life Insurance Corporation of India (LIC) and other insurance companies willing to collaborate with banks to sell the product on comparable terms.
Who was eligible for PMJJBY?
- Who was eligible for PMJJBY?
- Pradhan Mantri Jeevan Jyoti Bima Yojana’s key features (PMJJBY)
- Coverage and premium details of the Pradhan Mantri Jeevan Jyoti Bima Yojana (PMJJBY) scheme
- How can you apply for the Pradhan Mantri Jeevan Jyoti Bima Yojana (PMJJBY)?
- When will the Pradhan Mantri Jeevan Jyoti Bima Yojana (PMJJBY) scheme’s coverage expire?
- How is the Pradhan Mantri Jeevan Jyoti Bima Yojana (PMJJBY) claim settled?
- Steps which should be taken by the bank to settle a claim under the Pradhan Mantri Jeevan Jyoti Bima Yojana (PMJJBY)
- Steps taken by the insurance firm to resolve claims under the Pradhan Mantri Jeevan Jyoti Bima Yojana (PMJJBY)
- Implementation of the Pradhan Mantri Jeevan Jyoti Bima Yojana (PMJJBY) scheme
- The road ahead
- The scheme is open to everyone between the ages of 18 and 50 who has a savings bank account.
- Even if the individual has many bank accounts, he can only join the plan with one of them.
- In the case of joint accounts, the scheme is open to all account holders.
- It is necessary to link your Aadhar card to your savings account.
Pradhan Mantri Jeevan Jyoti Bima Yojana’s key features (PMJJBY)
The scheme’s salient elements are as follows:
- The program is for a year. The coverage period begins on June 1st and ends on May 31st of the following year.
- The premium for the scheme is due via auto debit from the insured member’s bank account.
- The insured member must consent to the premium being deducted from his bank account by auto debit. The premium will be deducted and the member will be covered only if the permission is granted. To have a complete year of coverage, the approval must be obtained by June 1st.
- Death coverage begins after the first 45 days of the plan’s inception. This means that no claim will be paid if the insured dies within the first 45 days of joining the scheme. In the case of accidental deaths, however, the 45-day waiting period does not apply.
- The Pradhan Mantri Jeevan Jyoti Bima Yojana (PMJJBY) premiums are not subject to GST
Coverage and premium details of the Pradhan Mantri Jeevan Jyoti Bima Yojana (PMJJBY) scheme
- The plan covers death within the one-year coverage period. The money assured, which is INR 2 lakh per insured member, is paid in the event of death. Only one scheme can be used by a member, and only one bank account can be used. Even if the member has many bank accounts, the insurance policy will only cover one of them.
- The scheme has an annual premium of INR 330 per insured member.
- The premium is paid by debiting the insured member’s savings account. The premium is split into many parts, which are as follows:
- For giving insurance coverage, the insurance company receives INR 289 as a premium.
- The agency or bank that assists the individual in enrolling in the scheme is reimbursed for the costs of insuring the scheme’s members. The compensation amount is INR 30 per insured member each year.
- The bank is additionally reimbursed for the costs associated with managing the scheme. The compensation amount is INR 11 per insured member per year.
How can you apply for the Pradhan Mantri Jeevan Jyoti Bima Yojana (PMJJBY)?
Those interested in enrolling in the Pradhan Mantri Jeevan Jyoti Bima Yojana can contact the banks with which they have a savings account. Other life insurance firms, as well as LIC, provide coverage under the scheme. Under the Pradhan Mantri Jeevan Jyoti Bima Yojana (PMJJBY), banks form partnerships with insurance companies to provide insurance coverage to their account holders
Although coverage begins on June 1st of each year, late enrollees can still pay the price and receive coverage. Coverage would begin on the date the premium was debited from the individual’s account, but the entire year’s premium would have to be paid. Enrollment is a simple process. On the government’s website, you may find the application form. The individual can fill out the form and submit it to the banking with whom he or she has an account, and the enrolment will be completed. The form is accessible in a variety of languages, and the individual can fill it out in whichever language he or she prefers.
Many banks now offer SMS or net banking options for enrolling in the service. To complete the enrolment process, the applicant must agree to the scheme’s terms and conditions as well as give his or her permission for the premium to be deducted automatically from his or her bank account. The candidate must accurately fill out the following information on the application form:
- The number on his or her Aadhar Card
- Number of his or her Savings Bank Account
- The applicant’s permanent address
- The applicant’s legal guardian’s address
- To receive updates regarding the coverage, provide your phone number and email address.
When will the Pradhan Mantri Jeevan Jyoti Bima Yojana (PMJJBY) scheme’s coverage expire?
In the following circumstances, coverage under the Pradhan Mantri Jeevan Jyoti Bima Yojana will be terminated:
- If the insured reaches the age of 55, coverage is no longer available since coverage is no longer available after this age.
- If the insured person cancels the bank account used to subscribe to the program, or if the insured person’s bank account has insufficient funds to pay the premium and the premium has not been auto debited by June 1st.
- If the insured person has used multiple bank accounts to apply for the scheme. When it is discovered that several applications have been submitted, the scheme’s coverage will be cancelled.
How is the Pradhan Mantri Jeevan Jyoti Bima Yojana (PMJJBY) claim settled?
The Pradhan Mantri Jeevan Jyoti Bima Yojana’s claim settlement procedure is straightforward. However, the nominee of the insured and the bank from which the scheme was purchased should take certain procedures. These are the actions to take:
The steps that the insured’s nominee should take are as follows:
- As the coverage only pays out in the event of death, the insured person should be sure to mention the nominee’s name. Once the insured dies during the term of coverage under the program, the nominee must begin the claim process.
- The nominee should contact the insured’s bank, which is where the insured signed up for the Pradhan Mantri Jeevan Jyoti Bima Yojana.
- For claim settlement, the nominee must have the insured’s death certificate on hand.
- The claim form and discharge receipt should be obtained from a bank branch, an insurance company branch, a hospital, or an insurance agent, among other places. Online versions of the claim and discharge forms are also accessible.
- The forms should then be entirely filled out and sent to the bank with all necessary papers. A death claim would necessitate the submission of the following documents:
- The insured’s death certificate,
- A copy of the nominee’s bank account’s cancelled cheque or
- A copy of the insured member’s cancelled check from the bank account where the scheme was purchased.
Steps which should be taken by the bank to settle a claim under the Pradhan Mantri Jeevan Jyoti Bima Yojana (PMJJBY)
The bank will have to perform some claim settlement measures after the nominee has submitted the claim via the above-mentioned steps.
- First and foremost, the bank would determine whether or not the member for whom the claim was lodged had a legitimate insurance policy. If the premium for the insurance was paid before to the insured member’s death and coverage for the year of death was still active when the insured died, the cover was said to be valid.
- The bank would then examine the claim form and verify the nominee’s information.
- The bank would fill in the relevant columns on the claim form.
- The bank then sends the claim form and discharge receipt, as well as the death certificate and a copy of the cancelled check, to the insurance company.
- The bank should notify the insurance carrier of the claim within 30 days of receiving the claim form from the nominee.
Steps taken by the insurance firm to resolve claims under the Pradhan Mantri Jeevan Jyoti Bima Yojana (PMJJBY)
- The insurance company will begin claim processing once it gets the claim notification from the bank along with the appropriate paperwork.
- The first stage in claim processing is to ensure that the claim form has been properly completed and that all needed documents have been submitted. In the event of a discrepancy, the insurance company would notify the bank, which would then ask the nominee to provide the missing information or papers.
- The insurance company would assess whether the member’s coverage was active or not in the event of a valid claim. If the policy was active, the company would also verify that the member had only one bank account with insurance coverage.
- The insurance company would pay the claim if everything was in order. The claim amount would be transferred straight to the nominee’s bank account, based on the information collected from the cancelled check given by the nominee.
- The insurance company would have a maximum of 30 days to disburse the claim amount from the date it received the bank’s claim notification.
- If the nominee submits a direct claim to the insurance company, the firm will first verify the claim’s veracity with the insured’s bank. The insurance company will only pay the claim amount once the bank has verified the claim.
Implementation of the Pradhan Mantri Jeevan Jyoti Bima Yojana (PMJJBY) scheme
The Pradhan Mantri Jeevan Jyoti Bima Yojana has been growing in leaps and bounds since its debut on May 9, 2015. Many people are signing up for the scheme because of the low premiums and the ease with which they can apply. As of the 14th of May, 2018, over 5.35 crore people had enrolled in the scheme.
The road ahead
The Pradhan Mantri Jeevan Jyoti Bima Yojana (PMJJBY) encourages the underprivileged and backward sections of society to obtain insurance at very low premium rates. The plan, however, is not limited to the impoverished; anyone with a bank account is eligible to participate. The coverage is adequate, and the costs are reasonable, allowing individuals to take advantage of insurance benefits. The government is also pushing the initiative to the general Indian populace in order to improve their lives. As a result, substantial enrolment in the system is envisaged in the coming years.
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