The Pradhan Mantri Jeevan Jyoti Bima Yojana or PMJJBY is a government-backed insurance scheme of India. The target group of the scheme is the unorganized sector and the economically weaker sections. Only 20% of Indians have some kind of insurance, and therefore, this scheme has been an initiative in providing affordable universal access to social security.
Details of the Scheme
The scheme is offered and administered through LIC (Life Insurance Corporation) and other companies. It is the responsibility of the bank to recover the annual payment of the premium through the auto-debit process. Under this scheme, a premium of Rs. 330 per annum per person has to be paid. The appropriation of the premium is as follows.
- An amount of Rs. 289 is charged as the annual insurance premium.
- An amount of Rs. 30 is paid by the policyholders for the refund of expenditures to Corporate, Agents, BC, Micro.
- An amount of Rs. 11 is paid by the policyholders for the Administrative Reimbursement Expenses on the banks doing the scheme.
Termination of Assurance
- The advantages and assertions under the Pradhan Mantri Jeevan Jyoti Bima Yojana scheme can be concluded in the following cases.
- It can be concluded when the policyholder attains the age of 55 years.
- It can be concluded in case the savings account of the subscriber that is linked with the scheme is shut.
- It can be concluded in case the policyholder is unable to maintain a minimum required balance in the savings bank account.
- The government has allowed one policy per person under the rules of PMJJBY.
The eligibility criteria for the Pradhan Mantri Jeevan Jyoti Bima Yojana scheme are listed as follows.
- The policy is available for individuals from 18 to 50 years of age.
- The person should have a functional saving bank account with any bank in India.
- The person should give a written consent that the premium can be auto-debited from the person’s savings account yearly and that the person would maintain the required minimum balance at the time of auto-debit.
- The person should give a declaration that he or she is not struggling with any acute and critical medical status at the time of registering for the Pradhan Mantri Jeevan Jyoti Bima Yojana.
- A person joining the scheme after the last date of the scheme would pay the full premium as well as a fitness certificate.
Provisions of the Scheme
Under this scheme, an annual life insurance of Rs. 2 lakh will be available on the payment of a premium of Rs. 330. The sum of Rs. 2 lakh in case of the death of the insured member is payable to the nominee. No claim is admissible for the deaths that occur during the first 45 days from the entry date, except in the cases of death due to an accident.
The Pradhan Mantri Jeevan Jyoti Bima Yojana, therefore, helps create a social security system for those in the unorganized sector, with a larger aim of an overall inclusive growth.