Every nation has a set of benefits offered by the government
for public welfare. It may include many facilities such as education,
employment, finance, funding, empowerment, gender equality, and other
specialised services. Since people have faith in the government, it
reciprocates with schemes and strategies that will lead to the progress of the
nation. One of the significant objectives of governments is to initiate overall
development and promote equality.
The Government of India had introduced the Pradhan Mantri Jeevan
Jyoti Bima Yojana in the year 2015. It is a one-year life insurance scheme that
supports annual renewal and provides mortality cover. It has no investment
component whatsoever.
The enrolment periods
The cover period for this scheme is from 1st June of each
year until 31st May of the following year. The scheme is available for all
those individual aged between 18 years to 50 years who have a savings bank
account. They must give consent to join and enable auto-debit from the account.
Other facilities include life cover for the individual until the age of 55.
Under PMJJBY, a life cover of over INR 2 lakh is available
at a premium rate of INR 330 per year for one member. It is subject to renewal
every year. In case a person has a joint account, all the holders of that
account can join the scheme provided they meet the eligibility criteria and pay
the rate of premium.
The breakup of the premium is as follows:
An insurance premium of INR 289 per annum per
member paid to the insurance company.
The reimbursement of expenses to the agent or bank is INR 30
per annum per member.
The reimbursement of administrative expenses is INR 11 per
annum per member paid to the participating bank.
The
waiting period for claims
Risk cover under PMJJBY policy is applicable
only after the first 45 days of enrollment. Insurers cannot settle claims during
the early 45 days from the date of enrollment. However, deaths owing to
accidents will be exempted from the clause and will still receive payments.
The enrollment procedure
For enrollment of an individual to Pradhan Mantri Jeevan Jyoti Bima Yojana,
it is essential to consider having a bank account. Banks can also help as they
have a tie-up with insurance companies. In case the individual has an account
in many different banks, the permission is granted on one bank account only.
The procedure is quite simple. Download the enrollment form,
fill in the required details, and submit it to the bank. Some banks have
SMS-based enrollment too. Net banking can also help.
