Pradhan Mantri Jeevan Jyoti Bima Yojana (PMJJBY)

In a concerted effort to enhance financial security and promote widespread insurance coverage, the Government of India introduced the Pradhan Mantri Jeevan Jyoti Bima Yojana (PMJJBY), also known as the PMJJBY Premium 436 due to its nominal premium amount of ₹436.

As a pivotal component of broader social security initiatives, PMJJBY is designed to extend life insurance coverage to economically vulnerable sections of society at an affordable premium. This all-encompassing scheme has witnessed substantial adoption since its inception, positively impacting millions of lives by establishing a protective shield against unforeseen circumstances.

This article shall explore the key features and advantages of PMJJBY as a comprehensive guide to financial security and insurance coverage

What is PMJJBY?

Pradhan Mantri Jeevan Jyoti Bima Yojana (PMJJBY) stands as a government-backed life insurance initiative, providing an annual renewable coverage term. This scheme aims to offer financial protection to economically disadvantaged sections of society, particularly individuals facing financial constraints that limit their access to conventional insurance products. The core philosophy behind the best health insurance plans is centred on affordability, featuring straightforward application processes to ensure accessibility for a diverse range of individuals.

Features of PMJJBY

Pradhan Mantri Jeevan Jyoti Bima Yojana (PMJJBY) offers several noteworthy features designed to provide financial security to policyholders.

• The enrollment period for PMJJBY spans from the 1st of June to the 31st of May each year. During this window, subscribers are required to enroll and provide consent for auto-debit. If an individual opts to purchase the policy after the 1st of June, they must pay the annual premium as a lump sum from the month of joining.
• The scheme provides a coverage amount of Rs. 2 lakh to the nominee in the unfortunate event of the insured person’s demise. This coverage amount comes with tax exemptions in accordance with the Income Tax Law. PMJJBY boasts a straightforward and hassle-free claim process, ensuring ease of use for beneficiaries.
• The coverage tenure for Pradhan Mantri Jeevan Jyoti Bima Yojana is one year from the date of signing. As a term life insurance plan, policyholders have the flexibility to renew PMJJBY annually until the age of 55. Discontinuation is possible by not renewing the policy. Alternatively, policyholders can rejoin the scheme later by providing a health certificate and paying the required premium.
• One of the notable advantages of PMJJBY is its affordability, with a minimum premium rate of Rs. 330 per annum. This makes it an attractive investment option for individuals in the low-income bracket. The premium remains consistent for subscribers between the ages of 18 and 50.
• Furthermore, the premium paid towards PMJJBY is eligible for tax exemption under the Income Tax Laws, although it’s important to stay informed about any potential changes in regulations. The premium is auto-debited from the subscribers’ savings bank account, making the payment process convenient and automatic. The renewal period, occurring between May 25th and May 31st, sees the premium amount auto-debited for policy renewal. In the event of deciding to discontinue the policy, submitting a cancellation request stops the premium payment deduction.

Benefits of PMJJBY

The Pradhan Mantri Jeevan Jyoti Bima Yojana (PMJJBY) offers various advantages, making it a valuable life insurance scheme:

• Affordable Premium: The annual premium for the scheme is as low as Rs. 330, ensuring affordability for individuals seeking to secure their family’s future.
• High Sum Assured Amount: In the unfortunate event of the policyholder’s death, the nominee receives a substantial sum assured, providing crucial financial security for the deceased policyholder’s family.
• Easy Enrollment Process: The enrollment process is hassle-free, allowing individuals to join the scheme by visiting their bank.
• No Medical Examination: Individuals are not required to undergo any medical examination during enrollment.
• Tax Benefits: Premium payments are eligible for tax benefits under Section 80C of the Income Tax Act, offering an additional financial advantage.
• Automatic Renewal: The policy is automatically renewed every year, provided the policyholder maintains a sufficient balance in their savings bank account.

Eligibility Criteria of PMJJBY

Here are the eligibility criteria for the Pradhan Mantri Jeevan Jyoti Bima Yojana scheme:

• The applicant must be an Indian citizen and possess a savings bank account.
• The age of the applicant should fall within the range of 18 to 50 years.
• The applicant should not hold any other life insurance scheme concurrently.
• Applicants are required to provide consent to join the scheme and furnish the necessary details.
• Maintaining a sufficient balance in the savings bank account is essential to cover the premium payments.

Exclusions Under PMJJBY

Here are the exclusions specified under the Pradhan Mantri Jeevan Jyoti Bima Yojana:

• Initial 30-Day Exclusion: New members are not covered for non-accidental death within the first 30 days of enrollment. Claims for non-accidental deaths during this period will not be honoured.
• Suicide Attempts under Intoxication: Suicide attempts while under the influence of intoxicating substances are not covered by the scheme.
• Intentional Self-Injury or Suicide: Intentional self-injury or suicide is not covered under the Pradhan Mantri Jeevan Jyoti Bima Yojana.
• Breach of the Law: Any actions constituting a breach of the law, whether with or without criminal intent, are not covered by the scheme.

How to Apply for the PMJJBY Scheme

Here is a step-by-step guide to the application process for Pradhan Mantri Jeevan Jyoti Bima Yojana:

Step 1: Inquire About PMJJBY

Visit your nearest bank branch or contact your bank’s customer care to obtain information about Pradhan Mantri Jeevan Jyoti Bima Yojana (PMJJBY).

Step 2: Obtain Application Form

Ask for the PMJJBY application form from the bank. The form will require you to provide basic personal and bank account details such as name, age, address, and nominee details. Ensure accurate and complete information.

Step 3: Consent for Auto-Debit

Provide consent for the auto-debit of the premium amount from your bank account. Sign or provide a thumb impression on the application form to authorise the auto-debit.

Step 4: Submission of Documents

Along with the application form, submit the necessary documents, such as a copy of your Aadhaar Card. Keep these documents ready and submit them along with the application.

Step 5: Nomination Process

Nominate a person who will receive the insurance coverage amount in the event of your unfortunate demise. Provide nominee details in the application form.

Step 6: Maintain Sufficient Balance

The annual premium for PMJJBY is Rs. 330, which will be auto-debited from your bank account. Ensure you maintain a sufficient balance in your account to avoid any failed transactions.

Pradhan Mantri Jeevan Jyoti Bima Yojana (PMJJBY) Form

To download the Pradhan Mantri Jeevan Jyoti Bima Yojana (PMJJBY) form online, follow these steps:

• Visit the official website: https://jansuraksha.gov.in/Forms-PMJJBY.aspx
• Click on the ‘Application Forms’ tab.
• The PMJJBY form is available in nine different languages, including Bangla, English, Gujarati, Hindi, Kannada, Marathi, Odia, Tamil, and Telugu.

Registration can also be initiated through internet banking or by sending a message to the toll-free number of the onboarding organisation.

To activate the policy using SMS

• Receive the activation message.
• Reply to the SMS activation by typing ‘PMJJBY Y.’
• A receipt of acknowledgement will be received.
• The bank, from the back end of the savings account, will then manage the processing information.

Individuals can also apply for PMJJBY online through internet banking

• Log in to the internet banking account.
• Click on the insurance section.
• Identify the account to be used for paying the premium amount, check all the details, and then confirm.
• Download the receipt and make a note of the reference number provided.

Checking Policy Status Online

To check the status of your PMJJBY policy online, you can follow these steps:

• Visit the official website of your bank and log in to your internet banking account.
• Once logged in, navigate to the section dedicated to Pradhan Mantri Jeevan Jyoti Bima Yojana (PMJJBY).
• Input your bank account number in the designated field. Additionally, provide your PMJJBY application number.
• Click on the submit button to proceed, and the system will display the status of your PMJJBY policy.

Online Claim Registration for PMJJBY

If you are a nominee in a PMJJBY scheme and need to claim the cash benefit, here are the steps for online claim registration and settlement:

• Step 1: Go to the official website of your bank.
• Step 2: Navigate to the Pradhan Mantri Jeevan Jyoti Bima Yojana (PMJJBY) section on the website.
• Step 3: Complete the online claim form with accurate details, providing the necessary information.
• Step 4: Upload and submit the required documents, such as the death certificate and completed claim form.
• Step 5: Await verification and approval from the insurer. This may involve assessing the submitted documents.
• Step 6: Once approved, the settlement amount will be credited to the nominee’s bank account.

To sum up, the process for claiming benefits under Pradhan Mantri Jeevan Jyoti Bima Yojana is user-friendly and can be conveniently done online. The automatic policy renewal and the absence of a medical examination requirement add to the simplicity of the scheme. The straightforward eligibility criteria make it easy for applicants to apply for the policy by visiting their bank. Considering these benefits, every individual should consider investing in this government-backed insurance scheme.

Reasons for Involuntary Termination of PMJJBY

The PMJJBY policy may be involuntarily terminated under various circumstances. Here are the potential reasons for policy termination:

• Age Limit: The policy could be terminated if the insured reaches the age of 55 years.
• Insufficient Bank Account Balance: Failure to maintain the required bank account balance for premium deduction may lead to the involuntary termination of the policy.
• Opting Out: If the insurance holder chooses to opt out of the PMJJBY scheme, the policy may be terminated.
• Non-Payment of Premium Dues: Policy discontinuation can occur due to the non-payment of premium dues within the specified timeframe.

Policyholders must be aware of these conditions to ensure the continuous and uninterrupted coverage provided by the Pradhan Mantri Jeevan Jyoti Bima Yojana.

Claim Settlement Under PMJJBY

The claim settlement process of the Pradhan Mantri Jeevan Jyoti Bima Yojana (PMJJBY) is designed to be straightforward and hassle-free. Let’s delve into the steps involved in the process:

Steps taken by the beneficiary

• In the unfortunate event of the insured person’s demise, the nominee must visit the bank where the insured person’s savings account is linked to the PMJJBY scheme. The nominee is required to submit the death certificate of the insured.
• The beneficiary obtains the claim form from the bank or the insurance company.
• Once the nominee has the claim form, they fill it out comprehensively and submit it along with necessary documents such as the discharge receipt, death certificate, photocopy of a cancelled cheque, and the bank details of the nominee or the bank account details of the policyholder.

Steps taken by the bank

• Upon receiving the claim form and necessary documents, the bank verifies the submitted information.
• After verification, the bank forwards the thoroughly filled claim form, discharge receipt, death certificate, and a copied cancelled cheque of the nominee to the designated insurance company.

Steps taken by the insurance company

• Upon receiving the claim form and related documents, the insurance company conducts its own verification.
• After successful verification, the insurance company transfers the claim amount to the bank account of the beneficiary.

The entire process, from claim submission to disbursement, has a maximum duration of 30 days.

Pradhan Mantri Jeevan Jyoti Bima Yojana offers a beneficial scheme that requires an Aadhaar card linkage with the participating bank account for enrollment. Subscribers can enrol even after the normal due date by paying full annual premiums and submitting a health certificate. With minimal premium rates, this government-backed insurance policy is advantageous for low-income individuals, securing their financial future against unforeseen circumstances.

The plan stands out for its simplicity in enrollment and switching processes, making it accessible to many eligible individuals. It provides security to the insured’s family in the face of any eventuality. Overall, with its affordable premium rates and straightforward features, PMJJBY is a highly beneficial plan for the low-income segment of society.

Important Details of PMJJBY

Here are some additional relevant details regarding the Pradhan Mantri Jeevan Jyoti Bima Yojana (PMJJBY):

• Cooling Period: The policy provides a 45-day cooling period upon enrollment, after which the coverage commences. However, in the unfortunate event of an accidental demise during the cooling period, the exemption applies, and the sum assured becomes payable immediately.
  • Account Closure Impact: If the savings bank account linked to the PMJJBY plan is closed, the policy will be terminated.
  • Policy Limitation: The PMJJBY scheme is limited to one policy per policyholder, even if the individual holds multiple savings bank accounts with banks offering this scheme.
• Premium Deduction: The premium amount will be directly deducted from the associated bank account annually from May 25th to May 31st.
• Policy Termination and Reinstatement: If the policy gets terminated for any specified reason, it can be reinstated if the premium amount has been fully paid and evidence of good health is provided.

FAQs About PMJJBY