Pradhan Mantri Jeevan Jyoti Bima Yojana (PMJJBY) 2023
Another applaudable scheme by India's Prime Minister Narendra Modi is the Pradhan Mantri Jeevan Bima Yojana (PMJJBY), a government-backed life insurance scheme. PMJJBY was first mentioned in February during the 2015 Budget speech by the Finance Minister, Arun Jaitley and later it got formally launched by Prime Minister Narendra Modi on 9 May in Kolkata. As a pure term insurance plan, this scheme is available to any Indian resident within the age bracket of 18-50 years old. This is a renewal term insurance policy that provides yearly life insurance coverage of Rs 2 lakh with merely a premium of Rs 330 per annum.
To enhance your knowledge about PMJJBY, in this blog Fintra will highlight some of the key features and benefits offered by this scheme:
- Features of PMJJBY
- PMJJBY Benefits
- Eligibility Criteria of PMJJBY Scheme
- The Claim Settlement Process of PMJJBY
- How to get enrolled in PMJJBY?
- The list of banks that provide PMJJBY Scheme
- Termination of PMJJBY
Features of PMJJBY
The following are a few of the features of Pradhan Mantri Jeevan Jyoti Bima Yojana (PMJJBY):
Enrollment Period
The Pradhan Mantri Jeevan Jyoti Bima Yojana's enrollment period is from 1st June of each year to the 31st of June of the subsequent year. During this period, the subscribers are required to enrol and provide their auto-debit consent. If the insurance buyer desires to buy the policy after 1st June, then it'll have to pay the premium of the policy year as a lump sum from the month of joining.
Coverage
If the insured person demises, PMJJBY will provide insurance coverage of Rs. 2 lakh to the nominee of the scheme. The coverage amount given to the beneficiary will be tax-free. This scheme gives a simple and hassle-free claim process as well.
Tenure
Pradhan Mantri Jeevan Jyoti Bima's coverage is for a tenure of 1 year from the date of signing. Since it's a term life insurance plan, the insured person can choose to renew its PMJJBY every year up to the age of 55 years. If the insured person desires to discontinue their plan, then they can do it by not renewing it. Moreover, the insured person may join the scheme anytime later by providing their heath certificate and paying the premium of the policy.
Premium
PMJJBY insurance coverage comes with a minimum premium rate of Rs. 330 per annum. This scheme is indeed a lucrative option of investment for those with low incomes. For subscribers of all age groups between 18 years- 50 years, the premium remains the same.
Tax- Benefit
Under Section 80C of the Income Tax Act, all the premiums paid towards the PMJJBY scheme is applicable for tax exemption.
Payment Mode
The only way to pay the premiums is by enabling auto-debit so that the banks can auto-debit the premium from your savings bank account. Pradhan Mantri Jeevan Jyoti Bima scheme's renewal period is between May 25th – 31st May, thus, the premium amount for the renewal of the policy is auto-debited from the policyholder's savings bank account. If the insured person wishes to discontinue the policy then it has to submit the cancellation request to stop the premium payment deduction.
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PMJJBY Benefits
Death Benefit
If the insured person demises, the PMJJBY will provide a death coverage of Rs. 2 lakh to the beneficiary of the policy.
Maturity Benefit
Since this is a pure term insurance plan, PMJJBY won't offer maturity or surrender benefits.
Tax Benefit
Under Section 80C of the Income Tax Act, all the premiums made towards the policy are eligible for a tax deduction. If the insurance holder fails to submit the form of 15 G/15 H, then any life insurance proceeds exceeding Rs. 1 lakh will be 2% taxable.
Risk Coverage
PMJJBY gives a risk coverage for one year, and since this is a renewable policy, it can be renewed yearly. The policyholder may opt for a longer duration of more than a year by enabling an auto-debit option and linking it to the savings bank account.
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Eligibility Criteria of PMJJBY Scheme
- To get enrolled with this Bima policy, the age limit is eighteen to fifty years.
- The subscriber should have a functioning saving account with any participating banks located on the premises of India.
- The subscriber should give written consent to the bank for the auto-debit of premium from the savings account and must ensure the minimum amount of premium to be there in the bank at the time of auto-debit.
- People joining after the last date should pay the full premium at the time of joining with a health certificate.
- A declaration must be generated by the concerned person that he/she is not suffering from an acute and critical medical status at the time of joining PMJJBY.
- To avail of the benefits granted by the policy, it is mandatory to link the Aadhaar Card to the participatory bank account.
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The Claim Settlement Process of PMJJBY
The process of claim settlement for the PMJJBY scheme is pretty simple and hassle-free. Following are the details of it:
Steps Taken by the Beneficiary
Step 1: If the insured person demises, the nominee has to visit the insured person's bank from where the individual's savings bank account is linked to the scheme. The nominee is required to submit the insured person's death certificate.
Step 2: The beneficiary then has to obtain the claim form from the bank, the insurance company, etc.
Step 3: After getting the claim form, the nominee is required to fill it up thoroughly and submit it along with the required documents such as discharge receipt, death certificate, photocopy of cancelled cheque, nominee's bank details or bank account details of the policyholder.
Steps Taken by The Bank
Step 1: After submitting the claim form along with the required documents, the bank will verify the form and documents.
Step 2: When verification is done the bank will submit the following documents to the designated insurance company:
- The thoroughly filled claim form
- Discharge receipt
- Death certificate
- Copied Canceled cheque of the nominee
Steps Taken by the Insurance Company
Step 1: Upon receiving the claim form along with the related documents from the bank, the insurance company will verify the filed claim form as well.
Step 2: When the verification of the claim filed has successfully been done, the claim amount will then get transferred to the beneficiary's bank account.
Once the claim is made, the maximum time the insurance company can take to approve it and disburse the claim amount is approximately 30 days.
How to get enrolled in PMJJBY?
The Pradhan Mantri Jeevan Jyoti Bima Yojana's enrolment process is pretty easy and simple. This popular scheme is managed by the Life Insurance Corporation of India along with various other private life insurance providers in India as well.
Anyone can easily enrol for the Pradhan Mantri Jeevan Jyoti Bima Yojana by approaching any affiliated bank or insurance company.
The PMJJBY form can also be downloaded online by visiting the website https://jansuraksha.gov.in/Forms-PMJJBY.aspx. After logging on to the website hit the ‘Application Forms’ tab. The PMJJBY form comes in nine different languages like English, Bangla, Gujarati, Hindi, Kannada, Marathi, Odia, Tamil, and Telugu.
The registration process can also be conducted via the internet banking facility or by sending a message on the toll-free number of the onboarding organization. To Activate the Policy by Using SMS Facility follow the steps below:
- You'll receive the activation message
- Reply to the SMS activation by typing ‘PMJJBY Y’
- An acknowledgement receipt will be received
- The bank from the back-end of the savings account will handle the processing information
The applicant may also apply for this scheme online by following the steps below:
- Log in to the internet banking account and click on the insurance tab
- Identify the bank account which you desire to use for paying the premium amounts. Check the details and confirm
- Once completed you must download the receipt and note down the reference number stated
The list of banks that provide PMJJBY Scheme in 2023:
Following is the list of banks in India that offers PMJJBY scheme:
Allahabad Bank
Axis Bank
Andhra Bank
Bank of Baroda
Punjab National Bank
Punjab and Sind Bank
South Indian Bank Ltd
Bank of India
Bhartiya Mahila Bank
Bank of Maharashtra
Central Bank of India
Ratnakar Bank Ltd
State Bank of Hyderabad
State Bank of Bikaner and Jaipur
Canara Bank
Corporation Bank
City Bank Union Ltd
HDFC Bank Ltd
Syndicate Bank
State Bank of Travancore
UCO Bank
Federal Bank Ltd
IDBI Bank Ltd ICICI Bank Ltd
Indian Overseas Bank
United Bank of India Union Bank of India State Bank of India
Indian Bank
Induslnd Bank Ltd
Oriental Bank of Commerce
Jammu and Kashmir Bank Ltd
Yes Bank Ltd
State Bank of Patiala
Kotak Bank
ICICI Bank
Vijaya Bank
AU Small Finance Bank
Termination of PMJJBY
The PMJJBY life insurance policy is considered terminated if the following incidents occur and no benefits would be payable:
- The assurance can be terminated if the subscriber of the scheme has attained the age of 55 years. Also, this means that you can’t get yourself enrolled in this scheme after 50 years of age.
- The government has allowed the one policy under the rules of Jeevan Jyoti bima yojana. So, one policy per person and is not dependent on the number of the savings bank account you have. If you have multiple savings account, and many bima policies on those accounts then this one will be concluded.
- It will be terminated if the subscriber of the scheme is unable to maintain the minimum balance required in the savings account.
- The policy can be terminated if the bank account linked with the scheme gets shut due to any reason.
Conclusion
As the above details reveal, the Pradhan Mantri Jeevan Jyoti Bima Yojana (PMJJBY), a life insurance scheme, was launched for the growth of the poor and low-income section of society.
One can easily subscribe to it by just linking your Aadhaar card with the participating bank account, too.
Since this is a government-backed insurance policy bearing minimum premium rates, this scheme is extremely advantageous for individuals who have low incomes. It efficiently secures the financial future of the person and acts as a backup so that it can battle against any kind of eventuality. The three vital reasons that make this scheme very beneficial are:
- It provides security to the insured person’s family to cover any eventuality.
- It offers the simplest process of enrolment and switching.
- With minimum premium rates, any eligible individual can subscribe to it without any hassles.
With all the above features and benefits offered by the scheme, we can conclude that this is certainly one of the best plans to purchase for the low-income section of the society.
