Pradhan Mantri Jeevan Jyoti Bima Yojana

The idea behind the Pradhan Mantri Jeevan Jyoti Bima Yojana, which was launched in 2015, was to create a one-year life insurance scheme for all those with a savings bank account renewable yearly and would offer coverage for death. The scheme provides annual coverage of rupees two lakhs. It is administered through public and private sector insurance companies to tie up with scheduled commercial banks, regional rural banks, and cooperative banks. The government is specifically more particular about the insurance sector since a large part of the Indian population did not have any know-how or access to insurance policies and coverage. The goal is to cover every part of the society, including the poor and the underprivileged and foster the spirit of inclusive growth and lead to the tagline of the scheme ‘Sabka Sath, Sabka Vikas’.

Also known as the PMJJBY scheme, it was launched by our former finance minister, Mr Arun Jaitley, in the budget in the year 2015. The Pradhan Mantri Jeevan Jyoti Bima Yojana was launched along with two other important insurance schemes, Pradhan Mantri Suraksha Bima Yojana and Atal Pension Yojana, to help the masses. As a result, the people at large understand the importance of insurance deeply and cater to the needs of the ‘aam janta’ or the common people. 

One key highlight of this scheme is that it is a one-year renewable life insurance scheme; however, one can also opt for a longer duration of time, and if so, the savings bank account will be auto-debited by the bank yearly. The scheme also provides coverage for death. There is no time limit attached to this scheme and is flexible to the choice and will of the individual who can exit the scheme at any time and can even join back in future whenever desired. The participatory bank will be the master policyholder of the scheme, and the scheme is devised in a very simple and subscriber friendly way, such that anybody and everybody can understand the claim settlement process of the Pradhan Mantri Jeevan Jyoti Bima Yojana without much difficulty or ambiguity. There are some clauses like the death coverage offered by the scheme, which would terminate if the person is above fifty-five years of age, and the member is covered through more than one bank account. There is insufficient balance in their savings bank account to keep the insurance in force and functional. Ones who fail to join the scheme in its initial year would be allowed to join the scheme in its subsequent years with the help of annual premiums and by submission of self-certificates of good health.  

Eligibility to associate with the Pradhan Mantri Jeevan Jyoti Bima Yojana is primarily a savings bank account holder between the age of eighteen to fifty years. The scheme is functional only with the help of participating banks. Subscription of this scheme is possible only through one savings bank account, irrespective of how many accounts the individual has in multiple banks. Linking the Aadhar card to the participatory bank account is a must to obtain the benefits of this scheme.

The Pradhan Mantri Jeevan Jyoti Bima Yojana started its enrolment procedure in 2015 from June till the end of May, May 31, 2016. However, they made the enrolment procedure of the scheme extendable up to August 31, 2016, and enrolment post this date began to be considered as payment of full annual premium and submission of the self-certificate of good health became an imperative. 

The PMJJBY scheme was available to be bought at rupees 330 premium per annum. The premium was automatically deducted from the individual’s savings bank account in one instalment through the auto-debit option. Premiums were required to be paid on or before May 31 of every month. Delayed payments were accepted only under certain specific terms and conditions. It was also decided that depending on the annual claim of experience, and premiums would be revised. In recent years like for 2022, the cover period is from June 1 2021, to May 31, 2022, and subscribers were required to enrol and give their auto-debit consent by May 31 2021. The policy remains the same, which is for those joining subsequently, would be able to do so with payment of full annual premium for the prospective cover. Under the PMJJBY scheme, an earlier life cover of Rs. 2 lakhs was offered at a premium rate of Rs.330 per annum per member and is renewable every year. In the case of a joint account, all holders of the said account can join the scheme, provided they meet its eligibility criteria and pay the premium at the rate of Rs.330 per person per annum.

As per the ICICI Bank website, with effect from September 1, 2018, the Ministry of Finance had revised the premium payment structure quarterly depending on the requested date from the account holder into the scheme. The revised structure made was as follows:

• June, July and August: Annual Premium of Rs 330 is payable
• September, October and November: Premium of Rs 258 is payable
• December, January and February: Premium of Rs 172 is payable
• March, April and May: Premium of Rs 86 is payable

The new premium structure consists of certain changes like suppose an account holder has placed and initiated the request for the PMJJY scheme on August 31, 2021. In this case, the annual premium of Rs 330 will apply to him/her for the entire year. However, the debit from the account will be completed in September. On the other hand, if the account holder requested for PMJJY scheme on September 1, 2021, the pro-rata premium of Rs 258 will be applicable as per the revised structure. Another important clause in this regard is that the individual’s mobile number must be updated in the bank records because if the mobile number is updated in the savings bank account, the policy will not be issued in that case. The bank will auto-debited the premium from the account holder’s savings account held with the bank. In case of renewal of the policy, it will be auto-debited between May 25 and May 31, unless the customer has given the cancellation request to the bank; in the occurrence of such event, the policy stand cancelled. Risk cover under the PMJJBY is applicable only after the completion first forty-five days of enrolment which means that the insurers do not have to settle claims during the first forty-five days from the date of enrolment. However, if a death occurs due to an accident, it will be exempted from the lien clause but will be paid. 

The PMJJBY is administered through LIC and other Indian private life insurance companies. One can also approach their bankers for the process of enrolment banks, which have tied up with insurance companies. Interested individuals can join even now, but the renewal date will remain June 1 for all the subscribers.