Pradhan Mantri Jeevan Jyoti Bima Yojana (PMJJBY)
Jan Dhan Se Jan Sureksha
Government through the Budget Speech announced three ambitious Social Security Schemes pertaining to the Insurance and Pension Sectors, namely Pradhan Mantri Jeevan Jyoti Bima Yojana (PMJJBY), Pradhan Mantri Suraksha BimaYojana (PMSBY)and an the Atal Pension Yojana (APY) to move towards creating a universal social security system, targeted especially for the poor and the under-privileged. Hon’ble Prime Minister launched PMJJBY and PMSBY schemes nationally in Kolkata on 9th May, 2015.
2. The Pradhan Mantri Jeevan Jyoti Bima Yojana (PMJJBY) is a one year life insurance scheme, renewable from year to year, offering coverage for death due to any reason and is available to people in the age group of 18 to 50 years( life cover upto age 55) having a savings bank account who give their consent to join and enable auto-debit. The risk cover on the lives of the enrolled persons has commenced from 1st June 2015.
3. Under PMJJBY scheme, life cover of Rs. 2 lakhs is available for a one year period stretching from 1st June to 31st May at a premium of Rs.330/- per annum per member and is renewable every year. It is offered / administered through LIC and other Indian private Life Insurance companies. For enrolment banks have tied up with insurance companies. Participating Bank is the Master policy holder.
4. The assurance on the life of the member shall terminate on any of the following events and no benefit will become payable there under:
1) On attaining age 55 years (age near birth day) subject to annual renewal up to that date (entry, however, will not be possible beyond the age of 50 years).
2) Closure of account with the Bank or insufficiency of balance to keep the insurance in force.
3) A person can join PMJJBY with one Insurance company with one bank account only.
5. Individuals who exit the scheme at any point may re-join the scheme in future years by paying the annual premium and submitting a self-declaration of good health. Initial enrolment period in the scheme was from 1st May to 31st May ‘2015, which has now been extended up to 31st Aug’ 2015, by this date eligible persons can join the scheme without giving self-certification of good health, even though eligible persons can join the scheme on any date by paying the premium for full year. In case of claim the nominees/heirs of the insured person have to contact respective bank branch where the insured person was having bank account. A death certificate and simple claim form is required to submit and the claim amount will be transferred to nominees account.
RULES FOR PRADHAN MANTRI JEEVAN JYOTI BIMA YOJANA (w.e.f. POLICY YEAR 2018-19)
1. DETAILS OF THE SCHEME:
PMJJBY is an Insurance Scheme offering life insurance cover for death due to any reason. It is a one year cover, renewable from year to year. The scheme is offered / 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. Participating banks are free to engage any such life insurance company for implementing the scheme for their subscribers.
2. Scope of coverage:
All individual account holders of participating banks in the age group of 18 to 50 years are entitled to join. In case of multiple bank accounts held by an individual in one or different banks, the person is eligible to join the scheme through one bank account only. Aadhar is the primary KYC for the bank account.
3. Enrolment period:
For the cover period 1st June 2018 to 31st May 2019, subscribers are required to enrol and give their auto-debit consent by 31st May 2018. Those joining in subsequent months would be able to do so with payment of premium as described below;
- For Enrolment in June, July and August 2018 – Full Annual Premium of Rs.330/- is payable.
- For Enrolment in September, October, and November 2018 – pro rata premium of Rs. 258/- is payable
- For Enrolment in December 2018, January, and February 2019 – pro rata premium of Rs. 172/- is payable.
- For Enrolment in March, April and May 2019 – pro rata premium of Rs. 86/- is payable.
Lien period of 45 days shall be applicable from the date of enrolment.
4. Enrolment Modality:
The cover shall be for one year period stretching from 1st June to 31st May for which option to join / pay by auto-debit from the designated individual bank account on the prescribed forms will be required to be given by 31st May of every year. Delayed enrolment for prospective cover is possible with payment of pro-rata premium as laid down in above para.
For subscribers enrolling for the first time on or after 1st June 2016, insurance cover shall not be available for death (other than due to accident) occurring during the first 45 days from the date of enrolment into the scheme (lien period) and in case of death (other than due to accident) during lien period, no claim would be admissible.
Individuals who exit the scheme at any point may re-join the scheme in future years. The exclusion of insurance benefits during the lien period shall also apply to subscribers who exit the scheme during or after the first year, and rejoin on any date on or after 01st June 2016. In future years, new entrants into the eligible category or currently eligible individuals who did not join earlier or discontinued their subscription shall be able to join while the scheme is continuing subject to the 45 days lien period described above.
Rs.2 lakh is payable on member’s death due to any cause.
Rs.330/- per annum per member. The premium will be deducted from the account holder’s bank account through ‘auto debit’ facility in one instalment, as per the option given, on or before 31st May of each annual coverage period under the scheme. Delayed enrolment for prospective cover after 31st May will be possible with payment of pro-rata premium as laid down in para 3 above. The premium would be reviewed based on annual claims experience.
7. Eligibility Conditions:
Individual bank account holders of the participating banks aged between 18 years (completed) and 50 years (age nearer birthday) who give their consent to join / enable auto-debit, as per the above modality, will be enrolled into the scheme.
8. Master Policy Holder:
Participating Banks are the Master policy holders. A simple and subscriber friendly administration & claim settlement process has been finalized by LIC / other insurance companies in consultation with the participating bank.
9. Termination of assurance:
The assurance on the life of the member shall terminate on any of the following events and no benefit will become payable there under:
- On attaining age 55 years (age near birth day) subject to annual renewal up to that date (entry, however, will not be possible beyond the age of 50 years).
- Closure of account with the Bank or insufficiency of balance to keep the insurance in force.
- In case a member is covered under PMJJBY with LIC of India / other company through more than one account and premium is received by LIC / other company inadvertently, insurance cover will be restricted to Rs. 2 Lakh and the premium paid for duplicate insurance(s) shall be liable to be forfeited.
- If the insurance cover is ceased due to any technical reasons such as insufficient balance on due date or due to any administrative issues, the same can be reinstated on receipt of appropriate premium as mentioned in Para 3 above, subject however to the cover being treated as fresh and the 45 days lien clause being applicable.
- Participating Banks shall remit the premium to insurance companies in case of regular enrolment on or before 30th of June every year and in other cases in the same month when received.
The scheme, subject to the above, is administered by the LIC P&GS Units / other insurance company setups. The data flow process and data proforma has been informed separately. Members may also give one-time mandate for auto-debit every year till the scheme is in force.
It is the responsibility of the participating bank to recover the appropriate premium in one instalment, as per the option, from the account holders on or before the due date through ‘auto-debit’ process. Enrolment form / Auto-debit authorization / Consent cum Declaration form in the prescribed proforma shall be obtained and retained by the participating bank. In case of claim, LIC / insurance company may seek submission of the same. LIC / Insurance Company reserves the right to call for these documents at any point of time. The acknowledgement slip may be made into an acknowledgement slip-cum-certificate of insurance.
The experience of the scheme will be monitored on yearly basis for re-calibration etc., as may be necessary.