Pradhan Mantri Jeevan Jyoti Bima Yojana

In the budget for the financial year 2015-16, finance minister announced for three security schemes in Non life insurance, Life insurance and pension, together covering to take Jan Dhan to next level of Jan Suraksha. These schemes have been rolled out from 01.06.2015.

Pradhan Mantri Jeevan Jyoti  Bima Yojana will be an Insurance Scheme offering life insurance cover for death due to any reason.

Highlight:

Ø  It would be a one year cover, renewable from year to year.

Ø  The scheme would be offered and 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.

Ø  Participating banks will be free to engage any such life insurance company for implementing the scheme for their subscribers.

Ø  In case of multiple bank accounts held by an individual in one or different banks, the person would be eligible to join the scheme through one bank account only.

Ø  Aaadhar would be the primary KYC for the bank account.

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.

Enrolment period:

 For the cover period 1st June 2016 to 31st May 2017, subscribers are required to enroll and give their auto-debit consent by 31st May 2016.

 Enrolment Modality:

Ø  The cover shall be for the 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.

Ø  Delayed enrolment with payment of full annual premium for prospective cover is possible.

Ø  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.

Ø  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.

Benefits:

 Rs.2 lakh is payable on member’s death due to any cause.

 Premium:

Ø  Rs.330/- per annum per member.

Ø  The premium will be deducted from the account holder’s bank account through ‘auto debit’ facility in one installment, as per the option given, on or before 31 st May of each annual coverage period under the scheme.

Ø  Delayed enrolment for prospective cover after 31st May will be possible with full payment of annual premium.  

Master Policy Holder:

 Participating Banks will be the Master policy holders. A simple and subscriber friendly administration & claim settlement process shall be finalized by LIC / other insurance company in consultation with the participating bank.

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:

Ø  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).

Ø  Closure of account with the Bank or insufficiency of balance to keep the insurance in force.

Ø  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.

Ø  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 full annual premium, subject however to the cover being treated as fresh and the 45 days lien clause being applicable.

Ø  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.

Appropriation of Premium:

Ø  Insurance Premium to LIC / insurance company: Rs.289/- per annum per member

Ø  Reimbursement of Expenses to BC/Micro/Corporate/Agent: Rs.30/- per annum per member

Ø  Reimbursement of Administrative expenses to participating Bank: Rs.11/- per annum per member

The date of commencement of the scheme is 1st June 2015.The Annual renewal date shall be each successive 1 st of June in subsequent years.