Pradhan Mantri Jeevan Jyoti Bima is an Insurance Scheme introduced by Narendra Modi to increase the number of citizens insured in India. From a survey, it was deduced that only 20% of the demography is insured with a Life Insurance policy. With a country that has a huge population, 80% individuals being uninsured is a big lag in development.
What are the particulars Pradhan Mantri Jeevan Jyoti Bima Yojana?
Under PMJJBY, it is stated that the Indian citizens between the age 18-50 years must pay a premium of INR 330 per year which will be auto debited from the bank account of the beneficiary. This premium will be mature to an amount of INR 2,00,000 and will be paid to the heir or nominee in case of the death of the account holder. Thus PMJJY aims at every citizen having a life insurance. The scheme will be provided by all Life Insurance companies. PMJJBY can be availed by all saving account holders. Thus it will be mandatory for all earning citizens to open a bank account.
What is the eligibility criterion for PMJJBY?
- An Indian citizen who is a savings bank account holder. (Age bracket: 18-50 years).
- Must submit a written consent to the government that a premium of INR 330 will be auto debited from their account annually.
How To Apply For PMJJBY: Filling Online Application
The following are the steps to apply for PMJJBY:
- Open the internet banking account of the bank you hold a savings account.
- Go to the “Social Security Schemes” section. This section is available under account details.
- Click on “Apply” and select scheme as “Pradhan Mantri Jeevan Jyoti Bima Yojana”.
- Enter your account number and CIF number.
- This application form is also available offline. Collect it from your bank or download it. Then you can fill the form online and submit with an authorized signature.
How is the premium divided?
The INR 330 premium auto debited monthly is divided as follows:
- INR 289 is the annual amount for crediting the insurance.
- INR 11 is payable to the bank by all account holders as Administrative Reimbursement.
- INR 30 is the amount payable to various government and private corporate sectors for incurring the payments that enable the provision of these services.
What is the termination scheme for PMJJBY?
The termination policy is as follows:
- The account will be terminated in the case of closure of the savings bank account of the beneficiary for reasons like bankruptcy or being unable to pay the premium due to insufficient balance remaining.
- When the citizen reaches 55 years of age, the account is automatically terminated.( Note: Enrolment can’t be done in PMJJBY after 50 years of age).
- In case the government comes to find out that an individual has multiple insurance schemes in the same account or under separate accounts, the PMJJBY for that individual will be terminated.