Pradhan Mantri Jeevan Jyoti Beema Yojana

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The Pradhan Mantri Jeevan Jyoti Beema Yojana is yet another initiative by the Government for the betterment of the masses. The initiative offers a secure, secure and affordable measure to ensure the lives of the families in the country.

The terms of this policy are such that even the lower sections of the c=society can benefit from this. This Jeevan Jyoti Beema Yojana was launched by the Prime minister Narendra Modi on 9th May 2019

What is the Pradhan Mantri Jeevan Jyoti Beema Yojana?

According to the Pradhan Mantri Jeevan Jyoti Yojana, any person under this plan will be insured by the government. In case if anything happens to the person, his family will receive an insurance amount of Rs. 2 lakhs. This plan is available for people age 18 to 50 years. The specialty of this plan is that it is available at a minimal premium rate of just Rs. 330 per annum. This scheme was open for subscription from 1st June 2015-31st May 2016.

As a government-backed insurance policy with the minimum premium rates, this plan is very advantageous for those individuals who have a low income. The plan is very efficient in securing the financial future of the individual. It provides a backup so that they can fight against any kind of eventuality. There are three key features that make this plan very beneficial –

  1. Security – The plan provides security to the family of the insured to cover any eventuality.
  2. Simple – The plan has the simplest process of enrollment and switching.
  3. Affordable – With minimum premium rates offered by the policy, any individual, who is eligible, can subscribe to this policy without any hassles.

With all these benefits and features offered by the policy, this is certainly one of the best plans to purchase for the low-income section of the society.

Pradhan Mantri Jeevan Jyoti Bima Yojana: Features

  • The Pradhan Mantri Jeevan Beema Yojana gives an insurance bearer a life coverage for 1 year.
  • Any person who has availed the policy under the Pradhan Mantri Jeevan Beema Yojana can renew the policy every year.
  • The insurance bearer can also withdraw from the policy anytime he wants. He also has the option to rejoin the policy on his wish.
  • The policy offers a maximum sum of Rs2 lakh to the family of the insurance holder if the policy bearer suffers demise.
  • As compared to the other term insurance policy the plan offers very low premium rates per year which is only of Rs. 330. Moreover, the premium rate for the Pradhan Mantri Jeevan Beema Yojana is equal for all age groups ranging from 18 to 50 years.
  • The claim settlement process offered by the Pradhan Mantri Jeevan Beema Yojana is very simple and subscriber friendly.
  • The scheme would be 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 will be free to engage any such life insurance company for implementing the scheme for their subscribers

Termination of the Policy:

  • There are certain cases under which the death benefit offered by the policy is terminated. The benefit will stand null and void if:-
    • 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 is, under PMJJBY with LIC of India / other company through more than one account and the LIC / other company inadvertently receives the premium, insurance cover will restrict to Rs. 2 Lakh and the premium shall be liable to forfeit.
    • If the insurance cover is ceased due to any technical reasons such as the insufficient balance on due date or due to any administrative issues, the same can be reinstated on receipt of full annual premium and a satisfactory statement of good health.
    • 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.

Benefits by the Pradhan Mantri Jeevan Jyoti Bima Yojana

Death Benefit-

The Death benefit stands true in case of the demise of the person who has the insurance. In case of the death of the policy bearer, under the Pradhan Mantri Jeevan Beema Yojana, the family of the policyholder gets a death coverage of Rs2,00,000 by the government. This benefit is subject to the following:

  • The death benefit of any individual life under this yojana should not exceed Rs. 2 lakhs.
  • In case a member is covered with SBI life and/ or multiple insurers through a single or multiple bank accounts and the premium is received in respect to all covers, the insurance cover will be restricted to Rs. 2 lakhs only be admitting the claim on the first application based on the date of enrolment.
  • The premium on the subsequent enrolment shall be liable to forfeit. In case any other insurer settles the death claimed with respect to some other member, SBI life shall not have any liability to admit the claim on the member and shall forfeit the premium.
  • In case of the death of the insurance bearer during the grace period, the death benefit will be payable to the nominee/ beneficiary or the legal heir as the case may be.
  • In case the Master Policy is not renewed for any reason whatsoever, the insurance bearer shall not have any right to demand the renewal of the Master policy.

Maturity Benefit- 

As this is pure term insurance plan, the Pradhan Mantri Jeevan Beema Yojana does not offer any maturity or surrender benefit.

Tax Benefit- 

The premium that a policy bearer has to pay towards the policy is eligible for tax deduction under section 80C of Income Tax Act. In case the insurance holder fails to submit form 15 G/15 H then any life insurance proceeds exceeding Rs. 1,00,000 will be taxable by 2%.

Risk Coverage- 

The Pradhan Mantri Jeevan Beema Yojana provides a risk coverage of 1 year. Nevertheless, as this is renewable policy it can be renewed yearly. Moreover, the policyholder can also opt for a longer duration more than a year by auto-debit option linked to your saving bank account.

Surrender Benefit:

There is no surrender benfit applicable in the Pradhan Mantri Jeevan Beema Yojana.

The Eligibility Criteria –

  1. Any person opting for the policy should be between the age of 18 to 50 years.
  2. The person applying for the policy must be having a saving bank account through which he can join this scheme through participating banks.
  3. Any person who have multiple bank accounts can subscribe to this scheme by only one saving bank account.
  4. In order to avail the benefits of the Pradhan Mantri Jeevan Beema Yojana, it is mandatory to link the Aadhaar card of the person who is applying to the participatory bank account. Aadhar would be the primary KYC for the bank account.
  5. Insurance buyers joining the scheme after the primary enrolment period ranging from 31st August 2015- 30th November 2015 will have to submit a self-attested medical certificate as a proof that he/she is not suffering from any critical illness mentioned in the policy declaration form.

For the convenience of our buyers, here we have shown the policy details in the tabular form.

Entry AgeMinimumMaximum
 18 years50 years
Maximum maturity age55 years
Policy Term1 year ( Renewable yearly)
Sum AssuredRs2,00,000
Premium amountRs330(inclusive of administrative charges of Rs41 per annum payable to the Banks)
Lien period45 days from the enrolment date into the scheme

The Premium amount payable on the basis of the month of enrolment is as follows:

  • Enrolment in June July and August: Prem,ium amount of Rs. 330 plus applicable charges ( inclusive of administrative charges of Rs41 per annum payable to the Banks ) payable for the entire year i.e. 4 quarters)
  • Enrolment in September, October and November: the Premium amount of Rs. 258 plus applicable charges ( inclusive of administrative charges of Rs. 33 per annum payable to the Banks ) payable for 3 quarters.
  • Enrolment in December, January, and February: the Premium amount of Rs. 172 plus applicable charges ( inclusive of administrative charges of Rs. 22 per annum payable to the Banks ) payable for 2 quarters.
  • Enrolment in March, April, and May: the Premium amount of Rs. 86 plus applicable charges ( inclusive of administrative charges of Rs. 11 per annum payable to the Banks ) payable for 1 quarter.

Enrolment:

The date of commencement of insurance cover is the date of debit of premium from the insured member’s account for joining the scheme and the insurance cover will be up to 31st May of the subsequent year. Thereafter, the cover can renew on the 1st of June every year by debiting the premium from your savings bank account. The premium is subject to change as specified by the Government of India from time to time.

In case a member wishes to join the scheme post 1st of June, he/ she can do so with the payment of full year’s/pro-rata premium based on the month of joining and submission of requisite documents/declaration, if any, as specified by scheme rules. The enrolment rules would be as specified by the Government of India from time to time. Full year’s premium i.e. Rs 330/- would be payable at the time of renewal under the scheme and pro-rata payment would not be allowed.

Late enrollment for prospective cover will be possible up to 31st August 2015, which may be extended by Govt. of India for another three months, i.e. up to 30th of November, 2015.

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 savings bank account on the prescribed forms will be required to be given by 31st May of every year, with the exception as above for the initial year.

Delayed enrollment with payment of full annual premium for prospective cover may be possible with submission of a self-certificate of good health. Individuals who exit the scheme at any point may re-join the scheme in future years by submitting a declaration of good health in the prescribed proforma. In future years, new entrants into the eligible category or currently eligible individuals who did not join earlier or discontinue their subscription shall be able to join while the scheme is continuing, subject to the submission of self-certificate of good health.

Those joining subsequently may be able to do so with payment of full annual premium for prospective cover, with the submission of a self-certificate of good health in the prescribed proforma.

Exclusions:
For new members enrolling into the scheme the risk will not be covered during the first 45 days from the date of enrollment into the scheme (lien period) and in case of death (other than due to accident) during lien period, no claim would be admissible.

Death Claims:

  • The Master policyholder/ beneficiary of the legal heir shall intimate the bank about the death of the insurance bearer in writing.
  • The following documents should be there for the processing of any death claim request:
    • Original COI
    • Original death certificate issued by any local government body like Municipal Corporation/ Village Panchayat
    • Application form for Death Claim
    • Hospital records including discharge summary, etc.
    • Any other documents including Post Mortem report, first information report, etc.
    • The claim under the policy shall be there within 90 days of the claim event.

Administration of the Policy:

The scheme, subject to the above, will be administered by the LIC P&GS Units / other insurance company setups. The data flow process and data proforma will be informed separately. It will be the responsibility of the participating bank to recover the appropriate annual premium in one instalment, as per the option, from the account holders on or before the due date through the ‘auto-debit’ process. Members may also give a one-time mandate for auto-debit every year till the scheme is in force.

3 Enrollment form / Auto-debit authorization / Consent cum Declaration form in the prescribed proforma shall be obtained and retained by the participating bank. In case of a claim, the LIC / insurance company may seek submission of the same. LIC / Insurance Company reserves the right to call for these documents at any point in time. The acknowledgement slips maybe into an acknowledgement slip-cum-certificate of insurance. There will be monitoring of experience of the scheme on a yearly basis for re-calibration etc., as may be necessary.

Prohibition of Rebates of the Policy:

Section 41 of the insurance act,1938,

This section as amended from time to time states

  • No person shall allow or offer to allow, either directly or indirectly, as an inducement to any person to take out or renew or continue an insurance in respect of any kind of risk relating to lives or property in India, any rebate of the whole or part of the commission payable or any rebate of the premium shown on the policy, nor shall any person taking out or renewing or continuing a policy accept any rebate, except such rebate as may be permissible in accordance with the publishing prospectuses or tables of the insurer. acceptance by an insurance agent of commission in connection with a policy of life insurance shall be taken out by himself on his own life shall not be deemed to be acceptance of a rebate of premium within the meaning of this sub-section if at the time of such acceptance the insurance agent satisfies the prescribed conditions establishing that he is a bonafide insurance agent employed by the insurer.
  • Any person making default in complying with the provisions of this section shall be liable for a penalty which may extend to ten lakh rupees

Non–Disclosures:

Extract of Section 45 of Insurance Act,1938,

This section as amended from time to time states:

  • No policy of life insurance shall be in question on any ground whatsoever after the expiry of three years from the date of the policy.
  • A policy of life insurance may be in question at any time within three years from the date of the policy, on the ground of fraud or on the ground that any statement of or suppression of a fact material to the expectancy of the life of the insured was incorrectly made in the proposal or other documents on the basis of which the policy was issued or revived or rider issued.
  • The insurer shall have to communicate in writing to the insured or the legal representatives or nominees or assignees of the insured, the grounds and materials on which such decision is based.
  • No insurer shall repudiate a life insurance policy on the ground of fraud if the insured can prove that thesis-statement or suppression of a material fact was true to the best of his knowledge and belief or that there was no deliberate intention to suppress the fact or that such misstatement or suppression are within the knowledge of the insurer.
  • In case of fraud, the onus of disproving lies upon the beneficiaries, in case the policyholder is not alive.
  • In case repudiation of the policy on the ground of misstatement or suppression of a material fact, and not on the grounds of fraud. the premiums on the policy till the date of repudiation shall be paid.
  • Nothing in this section shall prevent the insurer from calling for proof of age at any time if he is liable to do so. no policy shall be deemed to be called in question merely because the terms of the policy are adjusted on subsequent proof that the age of the life insured was incorrectly stated in the proposal.

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