Pradhan Mantri Jeevan Jyoti Bima Yojana
Prime Minister Narendra Modi is keen on getting the unbanked population brought to the mainstream banking systems and thus have started Jeevan Jyoti Bima Yojana for the people employed and working in unorganized sector. One such scheme recently launched is Pradhan Mantri Jeevan Jyoti Bima Yojana (PMJJBY), that offers a renewable life insurance cover of Rs 2 lakh with just a mere premium of Rs 330. Any Indian resident within the age group of 18 to 50 years is eligible to avail the scheme, provided he or she has a saving bank account with which the scheme would be attached.
Details of Jeevan Jyoti Bima Yojana
Pradhan Mantri Jeevan Jyoti Bima Yojana is an insurance scheme that would be renewable every year with a cover for just one year at a time. The scheme covers death due to any reasons. The main administrator of the scheme would be Life Insurance Corporation along with few other insurance companies who are willing to offer a similar product under the scheme. Any Indian resident within the age group of 18 to 50 years is entitled to join the scheme. If anyone has multiple saving accounts in several banks, the person can only join one scheme that could be attached to any of the saving accounts.
Enrollment Period of Jeevan Jyoti Bima Yojana
The cover period for initial launch of PMJJBY is from 01st of June 2015 to 31st of May 2016. All aspiring subscribers are required to give their consent to their respective banks by 31st May 2015. The government may extend the enrollment of the scheme till 31st August 2015 and may further extend it to another three months, i.e. till 30th November 2015. However, those joining after 31st may still have to make full payment of their premium amount in order to avail the cover during the said period.
Enrolment Modalities and Benefits of Jeevan Jyoti Bima Yojana
The premium within PMJJBY would be paid through an auto debit that would be attached to the subscriber’s saving account. Since 2015 happens to be the launching year of the scheme, an extension of 3 to 6 months would be provided for those willing to join scheme after the due date. However, in case of those joining the scheme after the last date would have to pay the full premium for the entire year in order to avail coverage for the year. A certificate of good health would have to be provided at the time of joining the scheme. If any individual exits the scheme at any point, he/she could rejoin the scheme by paying the full premium for that particular year along with submitting a certificate of good health. As per PMJJBY, the insurance for death is in the amount of Rs 2 lakh. This means that an amount of Rs 2 lakh would be given to the nominee of the deceased/subscriber.
Premium for Jeevan Jyoti Bima Yojana
The premium for PMJJBY is Rs 330 per annum to be auto-debited from the saving account of subscriber on a one time yearly basis. This money would be debited from the on or before 30th May of the given fiscal year. A detailed payment of the premium is also possible provided the subscriber pays the full premium in one time along with a self certificate of good health by a competent authority. Although, the government would strive not to increase the premium in times to come, the premium however, is subject to revision on a yearly basis. Eligiblility for Jeevan Jyoti Bima Yojana Following are the eligibility conditions for availing life insurance under PMJJBY:
- The subscriber should be within the age limit of 18 to 50 years
- The subscriber should have a working saving account with any of the bank in India
- The subscriber should give a written consent that the premium would be auto-debited from his/her saving account on an annual basis and he/she would maintain the required minimum balance at the time of auto-debit
- Those who join the scheme after the last date of the scheme would have to pay full premium along with a self certification of good health
- A declaration would have to be made by the subscriber that he/she is not suffering from any acute and critical illness at the time of enrolling into the scheme.
The termination of assurance under Jeevan Jyoti Bima Yojana
In any of the following conditions, the benefits and assurance under the scheme shall be immediately terminated and no amount would be payable to either the subscriber or the nominee:
- The assurance would be terminated in the event of subscriber attaining an age of 55 years. As a matter of fact, joining the scheme after the age of 50 years is not possible anyway.
- The assurance and benefits would be terminated in case of closure of the saving account through which auto-debit is guided.
- The cover would be terminated with all except one bank account if the subscriber has more than one saving account and more than one PMJJBY are running on those saving account. Only one insurance cover is allowed per individual.
- The scheme would be terminated if the subscriber fails to maintain a minimum balance to the saving account at the time of auto-debit. The scheme however, could be reinstated on payment of the full premium and certificate of a good health.
Appropriation of Premium under Jeevan Jyoti Bima Yojana
Following is the appropriation of Rs 330 that would be paid as premium under PMJJBY:
- Rs 289 would be charged as annual insurance premium by LIC per member
- Rs 30 would be charged for reimbursement of expenses to Agents/Corporate/Micro/BC
- Rs 11 would go against Administrative Reimbursement Expenses to the banks participating in the scheme.
As per the scheme, it is the complete responsibility of the participating bank to collect annual premium in one installment from the account holder before or on the due date. Subscribers have a choice of giving a onetime mandate for auto-debit of premium from their respective account. The proposed date of commencement of PMJJBY is 01st June 2015 and renewals would happen subsequently on 01st June of every year.
Claim settlement process in jeevan jyoti bima yojana
The central government has recently launched different insurance schemes and among them, one of the major is PM Jeevan Jyoti Bima Yojana. This is a life coverage plan and it covers both the natural and accidental deaths. A maximum sum of Rs 2 lakh rupees shall be provided as the coverage for insurance claims. In this article we are going to provide the complete details about the procedure for claiming the insurance coverage. Check them out below! The first step is, the nominee has to reach out for the bank where the member has a “savings account” through which he/she shall be covered under PMJJBY. And the nominee has to bring the death certificate of the insurance holder along with him/her. Then, the nominee has to get the claim form and the Discharge receipt which will be given by the bank or any other designated sources like insurance companies, insurance agents and hospitals. After that the nominee has to fill up the form accurately, fill up the discharge receipt and offer the Xerox of the death certificate. A photocopy of a cancelled cheque needs to be provided or the bank account details should also be given where the savings account is there for covering the PMJJBY. That’s it, nothing else is necessary to do.
Tax Benefits in Jeevan Jyoti Bima Yojana (80C Deduction)
Currently there is no tax benefits (80C) that you can avail of the premium paid in this Jeevan Jyoti Bima Yojana. This is one of the main reason this scheme has not gained much popularity in India. I think Government should consider this.