Prime Minister Jeevan Jyoti Beema Yojana

Prime Minister Jeevan Jyoti Beema Yojana (PMJJBY) is a central government-sponsored life insurance scheme launched by former Finance Minister Arun Jaitley in 2015. It is a one-year coverage Term Life insurance policy with a Life Insurance Cover of Rs. 2 Lakhs. The PMJJBY requires to be renewed from year to year. Till 31 March 2019, 5.91 crore people have been enrolled in this scheme.

PMJJBY is available in both public and private sector banks. A person (who connected with PMJJBY) will be offered life insurance cover for death due to any reason by the government. Rs. 330 / year is a premium price of PMJJBY. If you want to join the PMJJBY scheme, primary KYC is required like an Aadhar and PAN ID proof.

Division of 330 Rs. is as follows –

• Rs. 289 are given to the insurance company.
• Rs. 30 are given to bank and agent for expenses.
• Rs. 11 are given to the bank for administrative expenses.

Who are Eligible to take PMJJBY scheme?

A person, who has a saving bank account of any bank and any id proof like Aadhar, PAN, voter id, etc., can go for PMJJBY.

What If a person contains multiple saving accounts in different banks?

If an individual is there who holds multiple saving bank accounts in one or different banks, the person would be eligible to entertain the scheme through one saving bank account only.

What is the age limit for PMJJBY?

The age of the person, who wants to attach to this scheme, should be above 18 years and under 50 years.

Insurance Benefits of PMJJBY-

1. The government will offer 2,00,000 Rupees to the nominee of the person, who is associated with the PMJJBY scheme.
2. PMJJBY’s policy period is one year, from 1 June to next year’s 31 May. For example, if I join PMJJBY in June, any other date of 2022, or any date in 2023, it will expire on 31 May 2023.
3. The premium Price, i.e., 330 Rs/year, will be deducted through the auto-debit facility in one installment, the benefit of that is you don’t need to remember it.
4. An individual, who has to check the scheme at any point due to any reason, is eligible to re-join the scheme in future years but only after submitting a declaration of good health.

What is the procedure to get a claim?

For convenience, the whole process is divided into three parts-

Steps to be taken by the nominee–

Firstly, the Nominee should collect the death certificate. He should collect the claim form, discharge receipt from the bank branch or insurance company branch where the policyholder enrolled for PMJJBY, and also required his canceled cheque. After collection, all documents are submitted to the bank or insurance company.

Maximum within 60 days the submission of a document claimed money will be gotten by the nominee.

Steps to be followed by the bank-

When the bank received all required documents from the nominee then the bank will verify all documents. After verification, the bank will forward documents to an insurance company within 30 days.

Steps to be taken by your insurance company-

Now the insurance company rechecks all documents of the policyholder. if all documents will be right then release the nominee’s payment.

The maximum time limit for transferring money to nominees is within 30 days after collecting the claim from the bank.

What will happen, if a person has already taken this policy and he died due to murder/suicide?

If a person attempts suicide and dies due to murder then his nominee can claim for this. The claim will be passed out if all documents will be right.

Termination of PMJJBY Assurance-

1. Insufficient bank balance to keep PMJJBY scheme in continuation.
2. In the case when the saving account of the person gets closed.

Till what age a person can be covered under PMJJBY?

Any person aged between 18 – 50 years can opt for insurance coverage under PMJJBY.

If a person’s policy has been terminated due to insufficient balance. It can be revived only if he can reinstate his PMJJBY after paying the full premium amount.

 What is the claim settlement ratio of PMJJBY?

In the year 2020-2021, out of filed claims (2,50,351), 13,100 were canceled and 2,346 were in progress to inquiry. In the year 2019-2020, more than 17 million cases have been settled by paying 3,563.78 crore Rupees to nominees of the policyholder.

 Conclusion-

PMJJBY is the most helpful initiative for life coverage by our government. After being aware of the terms and conditions of this scheme, you should join PMJJBY. That’s true, anyone can’t fulfill the place of other people but in the financial aspect, PMJJBY will help person’s nominee a lot.

Our personal recommendation is to get this coverage for everyone in your family, even your maids & drivers, so that in case of unfortunate death, their families will be highly thankful to you. Spread this word and help people get covered under PMJBY.

Thanks for reading this article. Hope you found it very insightful and eye opener.

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