One of the ambitious social
security schemes launched by the Indian Prime Minister Narendra Modi is Pradhan
Mantri Jeevan Jyoti Bima Yojana (PMJJBY). It is a term life insurance policy which
you can renew every year or extend the duration of the plan. It also offers
life insurance coverage upon the death of the policyholder. Let us understand
the scheme better through some FAQs:
Who is eligible
for the scheme?
The PMJJBY policy is available for anyone who falls within the age group 18 years to 50
years. The concerned individual should also hold a bank account. People who
avail of this policy before 50 years of age, can enjoy the life cover only till
55 years of age. However, you may need to pay the premium consistently to reap
the benefits of the same.
What is the
premium?
The policyholders need to pay
INR 330 per annum. The amount gets deducted from your savings amount every
year. This gets done by the bank from where you apply for the policy.
What are the risk
coverages?
The risk coverage limit
provided by PMJJBY scheme is up to INR 2 lakh. If you have applied for the
policy for a longer-term period than a year, then the value gets deducted every
year for the agreed duration from the bank account.
Who offers the
programme to the consumers?
Several insurance companies
and banks offer the policy today. There are other financial institutes who are
eager to join the plan through tie-ups with individual banks. The banks, which
clients apply for the plan, are deemed as master account holders under PMJJBY. The
claim settlement process and administration processes are typically
consumer-friendly and simple. Sometimes, banks conduct operations in
consultation with other insurance companies.
How to enroll for
the scheme?
The plan initially launched
between June 1, 2015, to May 21, 2016. The subscribers must have enrolled as
well as provide the option for auto-debiting the premiums before May 31, 2015. The
date later got extended to August 31, 2015. People who wish to enroll for the PMJJBY
policy after the specified date needs to submit a self-attested copy where they
mention they are in good state and will pay the entire premium. The procedure
remains the same for the ones who joined the plan once and left, only to come back
and re-join later.
When does the
scheme get terminated?
The Pradhan Mantri Jeevan Jyoti Bima Yojana ends once you attain 55 years. If they want to keep
the scheme effective, they would have to renew them frequently. If the policyholder
does not have adequate funds in their account to pay the premiums annually,
then the policy gets terminated accordingly.
What role does the
bank play?
Apart from handling the
account of the policyholders and deducting premiums every year, the banks play
other roles too. The primary role is to transfer the premiums to the insurers. They
also handle other aspects such as –
. Enrollment forms
. Authorization of
auto-debitProviding declaration as well as a consent form
