It is easy for the middle class and a
vibrant section of the society to buy a life insurance policy. But what about
the poor and oppressed people of the country? They find it challenging to feed
themselves and their family; buying insurance for them is a far-fetched dream.
The government has realized their problem and has come up with a solution.
The launch
PMJJBY is a scheme launched by the
government that offers Life insurance schemes to the people of India. It was
first mentioned by the Finance Minister Mr Arun Jaitley in February 2015 in his
budget speech. On May 9, it was formally started by the Prime Minister of the
country, Mr Narendra Modi.
Who can sign-up for Pradhan Mantri
Jeevan Jyoti Bima Yojana?
Pradhan Mantri Jeevan Jyoti Bima
Yojana can be taken by the people who are aged between 18 years to 50
years. The people must have bank accounts.
What is PMJJBY?
PMJJBY is an insurance scheme that requires
you to pay an annual premium of only INR 330. This amount exempts the GST. In
an unfortunate event of the death of the nominee, the nominee’s family will
receive an amount of INR 2 lakh. The life coverage of this amount will be
available for the period of one year starting from June 1 to May 31. It is a
renewable policy.
The people who have taken the PMJJBY policy need to
self-pay the premium amount. This amount in the automatic-debit mode, where the
premium will be automatically deducted from the account of the nominee. This
scheme is linked to the bank accounts that were created for the Pradhan Mantri
Jan Dhan Yojana scheme. The account need not have a minimum balance as it is a
zero-balance account initially. The auto-debit will happen between the dates May
25 and May 31; the debit will not occur if the customer has requested to the
bank for the cancellation of this policy.
The account holders can use this facility
by activating their net-banking facility. For this, they need to fill a form
and deposit at one of the branches of the bank at any time.
It was found in 2015, that only 20 per cent
of the people in the country had any type of insurance. Until last year March
2019, around six crore people enrolled for this scheme, where around 1.3 people
have already claimed for it, and an amount of INR 2,700 crore has already been
disbursed.
Aadhar card is a necessary KYC document to open
the bank account. The scheme is offered by LIC or Life Insurance Corporation
and many other life insurers.