All You Need to Know About Pradhan Mantri Jeevan Jyoti Bima Yojana

Pradhan Mantri Jeevan Jyoti Bima Yojana (PMJJBY) is an insurance scheme backed by Government of India offering life insurance cover for death due to any reason. It is a one year cover, renewable from year to year. This policy is administered through LIC and other life insurance companies willing to offer the product on similar terms with necessary approvals and tie ups with banks for this purpose.

Features of PMJJBY:

• All individual savings account holders of participating banks between the age group of 18 to 50 years who give their consent will be entitle to join.
• In case a person has multiple accounts in one or different banks, he will only be able to join the scheme through one bank account.
• Aadhar will be the primary KYC for the bank account.
• The cover period is 1^st June of each year to 31^st May of subsequent year. Subscribers are required to enroll and give their auto-debit consent by 31^st May of every year.
• In case of death of the member who is insured, the nominee will be paid a fixed amount of Rs.2 Lakh.
• As per the earlier guidelines by the Ministry of Finance, the annual premium was at constant for Rs.330 for a period of 1 year starting from 1^st June to 31^st May irrespective of the request date of the customer into the scheme.
• With effect from 1st September 2018, the Ministry of Finance revised the premium payment structure on a quarterly basis depending upon the request date of subscribers into the scheme. The revised premium amount under the scheme is as follows:

Termination of Assurance: The assurance on the life of the policyholder shall terminate on any of the following events and no benefit will become payable thereunder:

1. On attaining the age of 55 years subject to annual renewal up to that date.
2. Closure of account with the bank or insufficiency of balance to keep the insurance in force.
3. In case of trying to join the scheme with multiple insurance companies and/or with multiple bank accounts, the cover will be restricted to Rs.2 Lakhs and other insurance covers are terminated and premium shall be forfeited.

Following steps should be taken by the nominee or the family member of the insured, in case of death of the policyholder to claim the insured amount of Rs.2 lakhs:

1. Nominee should approach the bank wherein the member was covered along with the death certificate.
2. Nominee to collect Claim form and Discharge receipt from the bank.
3. Nominee should complete the Claim form and Discharge receipt.
4. Nominee should submit Claim form and Discharge receipt along with death certificate to the bank and photocopy of the cancelled cheque of the nominee’s bank account.