Pradhan Mantri Jeevan Jyoti Beema Yojana (PMJJBY) is a term life insurance scheme offered by the Great Government of India.
It basically covers life insurance if someone dies for any reason then this scheme helps the beneficiary’s family.
Helpful Points in Understanding the Scheme
1. Description of the scheme:
The cover is available for a one-year period and can be renewed on a yearly basis after that. Companies such as LIC and other life insurance companies provide and administer the scheme.
Several insurance companies are prepared to provide coverage under the same conditions as well as the necessary papers. In purpose to accomplish this, approvals from financial institutions and agreements with the post office must be required in advance.
For the purposes of contracting with a life insurance company, participating banks and the Post Office are free to choose any such company. It is their job to put the scheme into effect for their subscribers.
2) Monetary Benefits under Pardhan Mantri Jeevan Jyoti Beema Yojana (PMJJBY) Scheme
A payout of Rs.2 lakh will be provided in the event of a member’s death, regardless of the cause.
3) Premium Paid Under PMJJBY Scheme
Each member must pay Rs. 330/- annual membership fee. The amount of the premium will be deducted from the account holder’s bank or post office accounts on an “automatic” basis.
If applicable, the ‘debit’ facility will be paid in one instalment according to the option indicated at the time of enrollment.
This is in accordance with the scheme After the 31st of May, any potential cover that is not charged will be subject to a late enrolment cost.
The payment of a pro-rata premium in accordance with the provisions of paragraph 3 above makes this possible. The
The premium would be reassessed each year in light of the number of claims that were filed.
4. Eligibility Requirements for Participation:
Individuals who own bank or post office accounts with one of the partner banks or post offices are eligible to participate.
A person working in an office between the ages of 18 (when the job was completed) and 50 (when their birthday was approaching) who was between the years of 18 (when the job was completed) and 50 (when their birthday was approaching).
Offer their approval to join/activate auto-debit in accordance with the aforementioned procedure, will be considered.
The scheme has been accepted as part of the program’s implementation.
5. Life Insurance Coverage Scope
Individual account holders at participating banks/financial institutions are included in the scope of coverage.
Postal workers between the ages of 18 and 50 who are employed by the post office are eligible to join the organization. In the event of an emergency, It is possible for an individual to hold numerous bank or post office accounts with one or more financial organisations at the same time.
If a person joins the scheme through one of the participating banks or post offices, that person is only entitled to participate in the scheme through that particular bank or post office. Only accounts with the post office will be accepted.
Aadhaar is the primary means of proving your identity when opening a bank or post office account.
6), Methods of Enrollment
the coverage will be for a period of one year and will be renewed after that.
The time period from the 1st of June to the 30th of May during which you can enroll and pay via automatic deduction from your bank account Individual bank/post office accounts will be opened in line with the approved forms, which must be filed by the 31st of May of each year in order to be required for opening.
The enrollment of potential pupils has been slowed significantly.
Payment of a pro-rata premium in accordance with the provisions of the preceding paragraph is required before cover can be obtained. Subscribers who enroll for the first time on or after June 1, 2021, will be eligible for insurance coverage.
The death that happens during the policy period (other than as a consequence of an accident) will not be covered under the policy.
The first 30 days following the date of enrolment into the scheme (lien period), as well as the subsequent 30 days following the date of enrolment into the scheme (expiration period) (lien period) No claim would be filed in the event of death (other than by accident) occurring within the term of the lien. admissible.
Individuals who withdraw from the scheme at any point in time may re-apply for the scheme at a later stage in the following year.
This prohibition on insurance benefits being paid during the lien period will also apply to the following: Subscribers who resign from the scheme during or after the first year and then re-join on any other basis date that is on or after the 1st of June, 2021 will be considered as having completed the first year.
Those who are currently eligible as well as those who have just entered the qualifying group will be considered in future years.
Participation in the programme will be open to anyone who has not previously enrolled in the programme or who has terminated his or her subscription to it.
For those who wish to take part while the scheme is still active, subject to the 30-day lien period specified above.
7. Enrollment period:
The cover will be in a period of one year from the date of enrollment. In addition, from the 1st of June through the 31st of May, you will have the opportunity to enrol and pay through automatic withdrawal from your bank account.
In accordance with the approved forms, individual bank/post office accounts will be formed for each participant. Submissions must be required by the 31st of May of each calendar year The enrollment of potential pupils is being held up as a result of this.
Prior to being eligible for cover, you must pay a pro-rata premium, which is required as follows:
(i)The annual premium is the whole amount for enrolment in the months of June, July, and August.
Rs.330/- is the amount that must be paid.
(ii)When you register during one of the following months, the pro-rata premium will be applied: September, October, and November are the months in which
Rs. 258/- is the amount that is owed.
(iii)Registration in the months of December, January, and February will be subject to a pro-rata premium of $600.
It is necessary to pay Rs. 172/- as an amount.
(iv)For enrolment in the months of March, April, and May, a pro-rata premium of Rs. 86/- is charged. payable.
In effect from the day of enrollment forward, a 30-day lien period shall be in place.
8), Main Policy Holder of PMJJBY
The main policyholder or master policyholder is a bank or post office that is a participant in the programme.
Policyholders are individuals who have purchased insurance policies. Straightforward and user-friendly administration and claim settlement are essential requirements.
The process has been completed after extensive consultation with the LIC and other insurance providers, among others.
With the banks and post offices that have agreed to participate.
9) PMJJBY’s Authority and Administration
The administration of the scheme is managed by the, who is subject to the constraints on administration described above.
LIC P&GS Units and other insurance company organizational structures The data flow process, as well as the data flow process
A separate communication has been sent to the data proforma informing them of the change.
It is the responsibility of the cooperating bank or post office to process the reimbursement request.
according to your preferences, in one installment from your account.
using the use of an automated debiting mechanism, holders on or before the due date
Enrollment, auto-debit authorization, consent, and declaration forms are all available online, as is information on how to enrol.
In order to participate, the participating bank/financial institution is responsible for obtaining and preserving the necessary forms.
The post office is located here. In the event of a claim, the LIC or insurance company may request that certain documents be submitted to them.
Exactly the same as before. The LIC / Insurance Company retains the right to seek these documents at any time at its sole discretion.
at any moment in time that you want.
When combined with a certificate of insurance, the acknowledgement slip is known as an acknowledgement slip-cum certificate.
The performance of the scheme will be examined on an annual basis to see whether any modifications, such as re-calibration, are required.
the life insurance coverage on the member’s life will be canceled.
Any of the following circumstances will result in the termination of the agreement and the forfeiture of any benefits due under it.
i) After reaching the age of 55 (or the age closest to one’s birthday), one’s passport is subject to annual renewal for a period of five years.
that is, up until that time (entry, however, will not be possible beyond the age of 50 years).
ii) bank or post office account closure, or insufficient funds in the account
In order to ensure that the insurance continues to be valid
iii) A member’s insurance coverage with the LIC of India or another insurer under PMJJBY is in effect.
There are multiple accounts maintained by the company; premium is received by LIC or other insurance companies.
Insurance cover will be limited to Rs. 2 lakh in the event that the other company does so on purpose.
If you do not use the duplicate insurance(s) that you have purchased, the premiums you paid will become forfeited.
iv) If the insurance cover is terminated as a result of a deficiency in the account amount on the due date, the following provisions apply:
If you have been forced to withdraw from the scheme, you may be able to rejoin it upon receipt of the relevant papers.
suitable reward, as indicated in Paragraph 3 above, subject, however, to the limitations set forth in the preceding paragraph.
The cover is handled as if it were brand new, and the lien condition of 30 days is still in place for the duration of the transaction.
v) In the event of a claim, participating banks are liable for remitting premiums to insurance companies on their clients’ behalf.
When an enrolment enrolls in a regular event on or before the 30th of June of each year, as well as in certain other circumstances,
when it is received in the same month as the request.
11. Appropriation of Premium:
|Appropriation of Premium Where:||Full Annual Premium of Rs.330/- collected||Rs.258/- collected in the 2nd quarter of risk Period||Rs.172/- collected in the 3rd quarter of risk period||Rs.86/- is collected in the 4th quarter of the risk period|
|01||Insurance Premium to Insurance Company(s)||Rs.289/-||Rs.225/-||Rs.150/-||Rs.75/-|
|02||Reimbursement of Expenses to Corporates or agents||Rs.30/-||Rs.22.50||Rs.15/-||Rs.7.50|
|03||Reimbursement of Expenses towards various participating Bank(s)||Rs.11/-||Rs.10.50||Rs.7/-||Rs.3.50|
To the point and clear Answer of Some Important FAQ regarding PMJJBY
Q 1. What is the nature of the PMJJBY scheme?
The plan is a one-year term life insurance plan that is renewable from year to year, and it provides life insurance coverage in the event of death due to any cause whatsoever.
Q 2. Who will be in charge of offering and managing the PMJJBY scheme?
The scheme would be offered and operated by the LIC and other life insurance firms willing to offer the product with the requisite approvals on identical terms, in partnership with participating banks.
Participating banks are allowed to contract with any of these life insurance companies to carry out the scheme’s implementation for its members.
Q 3. What is the enrollment period, as well as the mode of enrollment of PMJJBY scheme?
Customers were initially required to enrol and choose an auto-debit option by the 31st May 2015 for coverage beginning on the 1st June 2015 and ending on the 31st May 2016, however, this deadline was later extended until the 31st May 2016.
Subscribers who wish to continue their subscription after the first year will be required to express their authorization for auto-debit on or before each succeeding May 31st for the following three years.
Delayed renewal after this date will be possible upon payment of the full annual premium, subject to any changes in the terms and conditions of insurance protection.
Q 4. What method will be used to pay the premium of PMJJBY scheme?
It is necessary to provide a written agreement prior to enrolling so that the premium can be deducted in one instalment from the account holder’s bank account through an “auto-debit” function.
As an alternative, members may offer a one-time mandate for auto-debit every year for as long as the scheme is in operation, subject to re-calibration as may be required following an evaluation of the plan’s performance.
Q 5. What would be the benefits of the scheme, as well as the amount of premium that would be required?
In the event of a subscriber’s death, regardless of the cause, Rs.2 lakh is payable. The annual premium fee is Rs.330/- per subscriber, payable in advance.
Q 6. Who will be eligible to sign up for the PMJJBY service?
The programme will be open to all individual (single or joint) bank account holders between the ages of 18 and 50 who have bank accounts with participating banks.
If an individual has numerous bank accounts in one or more institutions, he or she will only be eligible to participate in the scheme if he or she uses just one of the bank accounts.
Q 7. When an individual leaves the PMJJBY scheme, is it possible for them to re-enter again?
Individuals who withdraw from the scheme at any point in time may re-enrol in the scheme in subsequent years by paying the annual membership premium.
In the case of such subscribers, however, insurance benefits will not be payable in the event of death (due to any cause other than an accident) occurring during the first 45 days following the date of enrollment in the scheme.
Q 8. What are the modifications in the terms of insurance coverage that will be effective for new subscribers in the 2016-17 fiscal year?
Subscribers enrolling for the first time on or after the 1st June 2016 will not be eligible for insurance benefits if they die (for any reason other than accident) during the first 45 days following the date of their initial enrollment in the scheme.
Death resulting from an accident will be covered from the first day of insurance coverage.
Q 9. What would be the method of allocating the premium of PMJJBY Scheme?
A. Insurance Premium to various Insurance companies including LIC: Rs.289/- per annually per member;
b. Reimbursement of Expenses to Corporates or agents etc.: Rs.30/- per annum per member;
c. Reimbursement of Administrative Expenses to various participating Banks: Rs.11/- per annum per member.
Q 10. When does the member’s assurance on his or her life come to an end?
If any of the following circumstances occur, the member’s life insurance policy will be terminated or restricted in accordance with the terms of the policy:
I. Upon reaching the age of 55 years (or the age closest to one’s birthday), subject to annual renewal up to that point (entrance, however, will not be permitted beyond the age of 50 years).
It is possible to lose your insurance coverage if you close your bank account or don’t have enough cash on hand.
The insurance cover would be restricted to Rs. 2 lakh in the event that a member is covered by more than one account and premium is collected by the LIC / insurance business by mistake. The premium paid for the duplicate insurance(s) will be forfeited in this situation.
Q 11. Who would be the policyholder in charge of the scheme’s Master policy?
The Master policyholders will be the banks that are taking part in the programme. In consultation with the collaborating bank, the LIC / selected insurance firm has completed a straightforward and user-friendly administration and claim settlement process.
Q 12. Can qualified individuals who do not participate in the scheme during the first year reapply in the following years?
Yes, if the premium is paid by auto-debiting your bank account. In addition, new eligible entrants in subsequent years will be able to participate in the same manner. Death (resulting from any reason other than accident) occurring during the first 45 days following the date of enrolment into the scheme, however, will not be eligible for insurance benefits for such subscribers.
Q 13. Can all account holders of a joint bank account participate in the scheme through the account in question?
In the case of a joint account, all of the account holders are eligible to participate in the scheme provided they meet the eligibility requirements and pay the premium at the rate of Rs.330 per person per annum.
Q 14. What is the involvement of various banks and insurance companies?
If LIC or another life insurance company is interested in offering such a product in cooperation with a bank or group of banks, the scheme will be handled by that firm. If an account holder chooses to pay their annual premium in one instalment, the partnering bank will be responsible for collecting the necessary amount from them on or before the due date using the “auto-debit” mechanism and transferring the funds to the insurance company.
iii. The participating bank shall obtain and preserve an enrolment form, and auto-debit authorisation form, a Consent cum Declaration form, and any other forms that may be required in accordance with the approved proforma. In the event of a claim, the LIC / insurance company may request that the claim be submitted.
In addition, the LIC / Insurance Company reserves the right to request these papers at any point in the future.
Q 15. Are PMJJBY plans being introduced and serviced in partnership with foreign insurance companies?
In India, there are no international insurance companies that are directly involved in the business. Several international insurers have formed joint ventures with Indian enterprises under the provisions of the Insurance Act and the IRDA Regulations, in which the foreign insurers’ ownership participation is limited to 49 per cent.
Q 16. Are non-resident Indians (NRIs) eligible for coverage under PMJJBY?
Any NRI who has a qualified bank account with a bank branch situated in India is eligible to obtain PMJJBY insurance cover, provided that they comply with the terms and conditions of the scheme. The claim benefit, on the other hand, will be paid to the beneficiary/nominee exclusively in Indian currency in the event of a claim being filed.
Q 17. Will this cover be in addition to any cover provided by any other insurance scheme under which the subscriber may be insured?
Q 18. Is it possible to take PMJJBY and PMSBY at the same time?
Yes, both PMJJBY & PMSBY Insurance Schemes can be taken at the same time. In fact, we highly recommend that if anyone has taken this scheme they should go for PMSBY also if they can as PMSBY is available only at Rs. 12/- year which is Re. 1/- monthly.
Q.19. Will the PMJJBY scheme, which is being aggressively advertised and sold in big numbers, result in huge profits for the foreign insurance companies that have formed joint ventures with Indian organisations to establish life insurance companies and operate this insurance cover?
In India, only Indian insurance companies, as specified by the Insurance Act, are permitted to conduct business. The policyholder funds of all such insurance businesses operating in India, including those with foreign partners, that fall under the 49 % cap are required to be invested in India and cannot be invested outside of India, according to the legislation.
The premium charged for PMJJBY has been calculated using actuarial calculations that take into consideration all risk variables, current mortality rates, and adverse selection, among other things. As a result, the scheme does not have the potential to generate large amounts of wealth.
Q.20. In light of the fact that LIC, a government-owned institution, could have managed the PMJJBY scheme, why are international insurance companies affiliated with it?
IRDAI has granted licences to 24 life insurance companies to conduct life insurance business in India, which are currently in operation. All of these businesses are permitted to join in order to foster competition and provide better prices and services to clients.
Furthermore, they are all insurance businesses based in India. Their foreign partners, if any, have just a 49 % share in these enterprises, which is within the limits of the law. However, the Life Insurance Corporation of India (LIC) continues to be the major insurer involved in the operation of the scheme.
Q .21. Is valid bank account necessary fot subscribing this scheme?
In order to subscribe to PMJJBY, you must have a valid bank account. All bank account holders, with the exception of institutional account holders, are eligible to participate in the PMJJBY scheme.
Q22. Does the PMJJBY cover death as a result of natural disasters such as earthquakes, floods, and other natural calamities? What about coverage in the event of suicide or homicide?
All of these occurrences are covered under PMJJBY, which covers death for any reason.
Q.23. In contrast to other life insurance products, the benefit payable under PMJJBY is only payable to the nominee of the insured upon the insured’s death. What is the reason for the absence of a maturity benefit or surrender value, which are both available in standard life insurance policies?
PMJJBY provides cover solely in the event of death, and as a result, benefits will be paid only to the nominee. PMJJBY is a pure term insurance policy that provides solely mortality protection and does not include any investment components.
When compared to other types of life insurance plans that provide maturity benefits, surrender values, and other features, the pricing is likewise competitively priced.
Its purpose is to provide life insurance cover to those who fall into the most vulnerable categories of society.
In order to do this, the premium is kept as low as possible, thus eliminating the investment component.
Q 24. It is possible to take legal action against foreign insurers in India if the claims are not settled?
In India, there are no international insurance companies that are directly involved in the business. According to the regulations, there exist firms that operate as joint ventures with Indian enterprises, with foreign insurers’ stakes limited to 49 % of the total equity.
These are, by definition, insurance businesses based in India. All of these businesses are governed by Indian law, and there is no prohibition on bringing legal action against them.
Q.25. Can the Premium Rate be increased in the future? or companies may cancel this scheme?
Insurance is no different from any other product. While rates may rise in the future, with 24 life insurance companies operating in India, prices are anticipated to remain stable in the short term due to competition among the companies.
The design of the PMJJBY cover, as well as the pricing, are likely to make the scheme financially feasible, and there is little prospect of it being phased out entirely. In any case, even if a certain company goes out of business, banks have a plethora of additional partners with which to collaborate.
Q-26. Is money under this scheme Refundable?
People who have more than one Savings account are only allowed to enroll in one PMJJBY insurance at a time. If it is discovered that this has occurred, the premiums will be reimbursed to the policyholder’s account. Furthermore, no coverage will be provided for such arrangements. It is necessary to pay the premium in accordance with the requirements.
Q-27 What should I do if I want to stop the auto-debit?
Customers who wish to cancel their auto-renewal must submit their request before the end of the current year. According to the scheme’s rules, renewal premiums will be deducted from the insured’s account until the insured reaches the age of eligibility.
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