Pradhan Mantri Jeevan Jyoti Bima Yojana is a government-sponsored life insurance programme that provides affordable life insurance to all Indian residents. The Pradhan Mantri Jeevan Jyoti Bima Yojana, also known as PMJJBY, is a government-sponsored life insurance programme that was introduced in 2015.

PMJJBY’s Key Features 

• PMJJBY is open to everyone with a bank account who is between the ages of 18 and 50 and who agrees to sign up for or allow auto-debit.
• There is a risk covering insurance of Rs. 2 Lakh in the case of the insured person’s death for any cause.
• The renewed life insurance coverage will continue for another year, from June 1 to May 31.
• The plan is being provided by Life Insurance Corporation and other insurance Corporations. 

To provide life insurance assurance to the underprivileged and disadvantaged members of society, the PM Jeevan Jyoti Bima Yojana was created. The goal is to raise PMJJBY coverage from 6.4 crore to 15 crore in order to achieve the goal of making India a fully insured society.

As of March 31, 2022, there were 6.4 crore active subscribers registered with PMJJBY.

What is the PMJJBY premium amount?

In the case of the insured’s death for whatever reason, the risk coverage under this policy is Rs. 2 lakh. The premium is Rs. 436 per year and will be automatically debited from the user’s bank account, on or before 31st of May of each annual coverage term.

Pradhan Mantri JeevanJyoti Bima Yojna Eligibility

The following is a list of the policy’s eligibility requirements:

• Through the collaborating banks, anyone between the ages of 18 and 50 who has a savings account can apply for this programme.
• A person with several bank accounts, can still participate in this scheme with just one savings account.
• In order to receive the advantages provided by this insurance, you must link your Aadhar eligible/participating savings account to your card.
• Those who sign up for insurance after the initial enrollment period, which runs from August 31 through November 30, 2015, must present a self-attested medical certificate demonstrating that they do not have any of the serious illnesses listed on the policy declaration form.

How to sign up for the Pradhan Mantri JeevanJyoti Bima Yojna Scheme?

This program’s enrollment procedure has been made clear and straightforward. The working of this scheme PMJJBY is handled by LIC and other private life insurance firms of the country.If a bank has a relationship with an insurance company, one can also speak with that banker about the enrollment procedure.

Even if a person had many bank accounts with one or more institutions, only one of those accounts would be eligible for enrollment in the programme.

One can renew the plan at any time during the year by paying the entire premium rather than the proportionate amount, so those who want to join the programme now still have the option to do so.

Pradhan Mantri Jeevan Jyoti Life Claim Resolution

The appropriate Office of the Interested Insurance Company will resolve the Death Claim. The procedure that is used is described below:

Tasks that the Nominee should do

1. The nominee must go to the bank where the member has the “savings bank account” that was linked to PMJJBY. The member’s death certificate must be in the possession of the nominee.
2. The nominee must then take the claim form and the discharge receipt from the bank or any other approved site, like an insurance company branch or agent, a hospital etc.
3. Include a xerox copy of the cancelled check from the nominee’s bank account along with the properly completed claim form, death certificate, and discharge receipt or the bank details.

Merits

• Low and affordable premium rates
• No medical test required to access these schemes
•  Filling a simple form with basic identity proof to access the schemes
• Financial inclusion and awareness among rural poor.

Demerits

• An illiterate person might not be aware fully about terms and conditions of the policies.
•  Jeevan Jyoti Scheme lapses when you cross the age of 55
•  Government is just a facilitator and the behavior of insurance company will define the progress of the schemes.
•  For a poor individual to afford the accidental scheme ,he has to pay Rs 1200/ year for covering his household. Boosting of NREGA to provide jobs is a necessary step.

This scheme is a good step to provide social security to citizens, but the government has to monitor insurance companies to check foul play and make sure the beneficiaries receive their insurance cover without hassle.

Pradhan Mantri JeevanJyoti Bima Yojna: The Path Ahead

Lack of financial involvement is anticipated to be a significant concern for India as its population grows and the nation exhibits high growth potential. Currently, 72% of India’s population lives in rural areas and depends heavily on daily labor for subsistence. 

The PMJJBY plan is anticipated to acquire more popularity in the future and achieve its objective of establishing the nation’s complete economic inclusivity as a result of the government’s ongoing efforts to improve social security awareness and empower the financially disadvantaged segment of society. 

Read more about investment schemes:

• Post Office Saving Scheme Account Scheme
• Fixed Deposit Interest Rates for Senior Citizens in Post Office

Conclusion

With the tagline “Jan-Dan se Jan Surakhsa” the Pradhan Mantri Jeevan Jyoti Bima Yojana aims to provide insurance coverage for death due to any reason to all Indian citizens, particularly unorganized sector employees.

Pradhan Mantri Jeevan Jyoti Bima Yojana has many appealing features, including flexibility throughout an easy and transparent process, an easy claim process, and a highly dependable and reasonably priced term insurance service.

However, the restricted coverage, current rivalry, and lack of investor interest serve as roadblocks to the scheme’s development.

Krishna Murthy V

Krishna Murthy is the senior publisher at Trickyfinance. Krishna Murthy was one of the brilliant students during his college days. He completed his education in MBA (Master of Business Administration), and he is currently managing the all workload for sharing the best banking information over the internet. The main purpose of starting Tricky Finance is to provide all the precious information related to businesses and the banks to his readers.