All you need to know about Pradhan Mantri Jeevan Jyoti Bima Yojana

Pradhan Mantri Jeevan Jyoti Bima Yojana

Life insurance is very essential to provide a sense of financial security to the family members in case of your unfortunate demise. To stress upon the importance of life insurance, the Prime Minister of India, Mr Narendra Modi has launched the Pradhan Mantri Jeevan Jyoti Bima Yojana (PMJJBY). The PMJJBY scheme offers term life insurance coverage at affordable premiums. Let’s understand what the PMJJBY scheme is all about.

What is PMJJBY?

PMJJBY full form is Pradhan Mantri Jeevan Jyoti Bima Yojana. This scheme provides a one-year renewable term insurance coverage for a sum insured of INR 2 lakhs.

Features of Pradhan Mantri Jeevan Jyoti Yojana

The PMJJBY scheme has various salient features which are discussed below –

  • PMJJY offers pure term insurance cover. If you die during the term of the plan, the sum assured of INR 2 lakhs would be paid to your family. In case you survive the coverage tenure of one year, no maturity benefit is paid
  • You can renew the plan every year till you reach the maximum coverage age
  • Coverage starts from 1st June every year and continues till 31st May of the following year
  • You can buy the plan after 1st June but coverage would cease on 31st May after which you would have to renew. Moreover, even if you buy mid-way, you would have to pay the premium for the full year
  • Accidental deaths are covered from Day 1 of the policy
  • In case of death due to an illness, there is a waiting period of 45 days from the date that you buy the policy. If you die due to an illness during the waiting period of 45 days, no claim would be paid under the policy
  • You can buy the plan through your bank account
  • Premiums are deducted through auto debit from your bank account. As such, to get coverage you have to opt for the auto debit facility in your bank account

Eligibility parameters for Jeevan Jyoti Bima Yojana Scheme

If you want to buy the PMJJBY scheme, you would have to fulfil the following eligibility parameters –

  • You should have a bank savings account
  • Joint account holders can also apply for the scheme
  • You should be aged between 18 years and 50 years. Coverage is allowed up to a maximum age of 55 years

What is covered under PMJJBY?

PMJJBY covers deaths during the policy tenure. Death can be accidental or due to an illness.

What is the premium amount of PMJJBY?

As mentioned before, PMJJBY is a very affordable scheme. The premium for one-year term insurance coverage is only INR 330. You have to pay the premium directly from your bank account through the auto-debit facility.

The insurance cover is available through your bank account however the bank ties up with an insurance company to provide you with the insurance coverage. That is why the premium that you pay is divided between the bank and the insurance company. Here’s how the division takes place –

  • INR 289 of INR 330 is paid to the insurance company for providing you with the term insurance coverage 
  • INR 30 of the remaining amount is paid to the bank or agent through which you buy the PMJJBY scheme
  • Lastly, the remaining INR 11 is also paid to the bank to meet the administrative expenses incurred by the bank in issuing you the policy

How to buy Pradhan Mantri Jeevan Jyoti Bima Yojana?

You have to buy the PMJJBY scheme from a bank where you hold an account. Almost all banks offer coverage under the scheme. Each bank is tied-up with the insurance company to provide you coverage. 

To apply for the scheme, you have to fill up an application form for the same. The form is available at the branches of your bank. If you are enrolled with the bank’s net banking facility then you can find the form online on the bank’s website. Alternatively, you can also download the form from the website of the Government which is Janasuraksha.gov.in 

After getting the form you can fill it in any language. The complete details of the insured and the nominee should be clearly mentioned. You should also give your consent for auto debit of the premium for the scheme.

Submit the filled form along with the consent for auto debit. The bank would verify your form and send it to the insurance company. Once the company approves coverage, the premium would be debited from your account and the coverage would start.

How to claim under the PMJJBY scheme?

Just like applying for the Pradhan Mantri Jeevan Jyoti Bima Yojana is easy, making a claim is also simple. To make a claim under the scheme, take the following steps –

  • As the insured dies, the nominee should intimate the bank about the death of the insured
  • The nominee should then fill up a claim form and a discharge receipt for getting the claim
  • The form and the receipt should be submitted to the bank from where the scheme was bought
  • The bank, then, verifies the claim
  • After verification, the bank sends the claim form and related documents to the insurance company which provides insurance coverage
  • The insurance company would also verify the claim at its end and check the authenticity of the documents submitted
  • If the insurance company is satisfied with the authenticity of the claim, the claim amount is directly credited to the bank account of the nominee

Documents required for making a claim under PMJJBY

To support the claim, the nominee should submit the following documents along with the claim form and the discharge receipt –

  • Death certificate of the insured
  • Copy of his cancelled cheque which would provide the insurance company with the bank account details of the nominee wherein the claim would be credited
  • Claim occurs when the insured dies. In that case, the nominee should approach the bank and intimate the death of the insured. A claim form and a discharge receipt should be filled in by the nominee and submitted to the bank along with the death certificate of the insured. The nominee should also submit a copy of his cancelled cheque for furnishing his bank account details wherein the claim would be credited

Things to keep in mind

The PMJJBY scheme is quite a straightforward scheme of term insurance where the coverage is provided for one year for a sum assured of INR 2 lakhs at a premium of INR 330. However, there are some things which you should remember about the scheme –

  • The PMJJBY scheme can be applied from one bank account only. If you have multiple bank accounts you cannot apply for the scheme through each of them
  • If you have applied for the scheme through multiple bank accounts, the scheme would be terminated when the multiple coverages are discovered. The premium that you paid would also be forfeited
  • The scheme would be terminated if you close the bank account from where you applied 
  • The scheme would also be terminated if your bank account does not have sufficient balance to pay the premiums
  • You can voluntarily opt out of the scheme whenever you want

Benefits of PMJJBY

Now that you know all the important aspects of the Pradhan Mantri Jeevan Jyoti Bima Yojana, let’s see the benefits which the scheme promises – 

  • The scheme is available to everyone holding a valid bank account and who fulfils the age criterion
  • The premiums are extremely low and affordable making the scheme accessible to all
  • The coverage amount is decent providing the family with the much-needed financial assistance in case of premature death of the breadwinner
  • Since the scheme is easily accessible, it increases the penetration of insurance in India and highlights the importance of having a term insurance plan

What are you waiting for? 

The PMJJBY scheme is simple and easily accessible. You can opt for the scheme even when you have other insurance policies to your name as the premiums are low. So, apply for the scheme and get covered against the risk of premature death.

Frequently Asked Questions

  1. What would be the claim amount if I have multiple term plans and also the PMJJBY insurance?
    PMJJBY can be bought in addition to any other insurance policy that you have. In case of a claim, you would get the claims from all the policies that you have including PMJJBY cover.
  2. What would happen once I attain 55 years of age?
    If you are covered under the PMJJBY scheme and you attain 55 years of age, the coverage would automatically terminate.
  3. Are any documents required to apply for the scheme?
    Your KYC documents would be required when you apply for the scheme. These include your identity proof, age proof, address proof and photographs. However, since you already have a bank account, your identity is established. Your bank might, therefore, allow you to apply for the scheme without submitting additional documents.
  4. Can I apply for the scheme through SMS?
    Yes, you can if your bank allows you to apply for PMJJBY through an SMS. You would, however, have to fill the application form and submit it to avail coverage.

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