Pradhan Mantri Jeevan Jyoti Bima Yojana

Pradhan Mantri Jeevan Jyoti Bima Yojana is a life insurance plan in India offered by the Indian Government. This scheme came into existence on 9th May 2015.

Here are the details about Pradhan Mantri Jeevan Jyoti Bima Yojana to know about this scheme in-depth.

Pradhan Mantri Jeevan Jyoti Bima Yojana (PMJJBY) was launched by Mr Narendra Modi. The Life Insurance Corporation of India offers this scheme to people from underprivileged groups with ages within 18-50 years.

As of May 2015, only 20% of individuals residing in India had an insurance plan. This government-backed plan aims to encourage more people to secure their lives with an insurance policy.

Individuals meeting the following PMJJBY eligibility criteria will qualify under this scheme -

• Within the age group of 18 - 50 years
• Agreeing to join this scheme or enable auto-debit
• Possessing a savings bank account

Here are the Pradhan Mantri Jeevan Jyoti Bima Yojana benefits.

• Benefit after Death: Similar to any term insurance plan, this scheme will offer a death benefit of up to ₹2 lakh upon a policyholder’s demise.
• Risk Coverage: This scheme provides financial cover for all the life risks. This coverage amount will get paid after 45 days of death. There will be no waiting period if a policyholder dies due to an accident. A beneficiary will receive this scheme’s benefit on an immediate basis.
• Tax Benefits: Policyholders will enjoy tax deductions against their investments towards this plan under Section 80C of Indian Income Tax Act 1961. This is one of the essential PMJJBY benefits.

Under this Pradhan Mantri Jeevan Jyoti Bima Yojana, people from the underprivileged groups between the ages of 18 - 50 years will receive financial cover for a period of 1 year. Policyholders will receive a cover of ₹2 lakh by paying a nominal premium of ₹330 each year. As this scheme falls under the category of term insurance plan, one will receive cover for life risks only and not maturity benefits. A maximum coverage age under this plan is 55 years.

One can apply to PMJJBY through LIC or any other Indian life insurance company. Many banks offer enrollment under this scheme at its branches. No matter how many bank accounts you hold, you can only use a single account to register under this scheme.

Check this enrollment process as mentioned below.

• First, download the PMJJBY application form from the official portal.
• After that, just choose the most convenient language to fill in the form.
• Then, fill up this form carefully and submit the same with a bank.
• Also, submit the required KYC document in the form of an Aadhaar card or PAN card or Voter Id card or Passport.
• After verifying the document, applicants will get registered successfully under this scheme.
• Most of the banks provide an SMS-based application process. One must check with his/her bank on the same while applying.

Nominees can apply for the claim process by following the steps below. Here is what a beneficiary needs to do:

• On account of the demise of an insured, the beneficiary must go to the bank whose savings account has been linked to this plan. A nominee must submit an insured’s death certificate.
• Next, the nominee will have to get a form to raise a claim from the insurer or a specific bank.
• Now, fill up this form and submit all the necessary documents like - a cancelled cheque’s photocopy, discharge receipt, insured’s death certificate, and finally, the nominee’s bank details.

Here’s what the bank does -

• The bank will validate and verify a nominee’s claim form and all the other documents.
• Upon completing verification, the bank will submit all required documents to an insurance company. 

Lastly, an insurer or insured company will perform these steps -

• After sending the claim request to an insurance company via a bank, the insurance firm will verify all the documents.
• After verifying documents successfully, the beneficiary will receive the claim amount into their bank account.

 

The Pradhan Mantri Jeevan Jyoti Bima Yojana thus offers financial assistance to the underprivileged having a bank account. However, while applying to this scheme, one must be mindful of the eligibility requirements, benefits, claim process and other vital points, as mentioned above.