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Pradhan Mantri Jeevan Jyoti Bima Yojana - PMJJBY

Pradhan Mantri Jeevan Jyoti Bima Yojana – PMJJBY is a government-backed Life insurance scheme in India. It was originally mentioned in the 2015 Budget speech by Finance Minister Arun Jaitley in February 2015. It was formally launched by Prime Minister Narendra Modi on 9 May in Kolkata. As of May 2015, only 20% of India’s population has any kind of insurance, this scheme aims to increase the number.

PMJJBY Scheme Details:

Pradhan Mantri Jeevan Jyoti Bima Yojana – PMJJBY is available to people between 18 and 50 years of age having a bank account who give their consent to join / enable auto-debit. It has an annual premium of ₹330. The GST is exempted on Pradhan Mantri Jeevan Jyoti Bima Yojana – PMJJBY. The amount will be automatically debited from the subscriber’s bank account as per the option given by him on or before 31st May of each annual coverage period under the scheme. In case of death due to any cause, the payment to the nominee will be ₹2 lakh. Aadhaar would be the primary KYC for the bank account. The scheme is being offered / administered by Life Insurance Corporation and all other Life Insurance companies who are willing to offer the product on similar terms with necessary approvals and tie up with banks for this purpose.

PMJJBY Coverage:

All savings bank account holders in the age 18 to 50 years in participating banks will be entitled to join. In case of multiple saving bank accounts held by an individual in one or different banks, the person would be eligible to join the scheme through one savings bank account only. Aadhaar would be the primary KYC for the bank account.

PMJJBY Enrolment Period:

Initially on launch for the cover period 1st June 2015 to 31st May 2016, subscribers will be required to enroll and give their auto-debit consent by 31st May 2015. Late enrolment 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. Those joining subsequently may be able to do so with payment of full annual premium for prospective cover, with submission of a self-certificate of good health in the prescribed proforma.

PMJJBY Enrolment Modality:

The cover shall be for the one-year period stretching from 1^st 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 discontinued their subscription shall be able to join while the scheme is continuing, subject to submission of self-certificate of good health.

PMJJBY Benefits:

PMJJBY provides a death coverage of Rs.2 lakhs to the beneficiary of the policy in the case of the sudden demise of the insured person due to any reason
As PMJJBY is a pure term insurance plan, it does not offer any maturity or surrender benefit.
The premium paid towards the policy is eligible for tax benefits as under section 80C of the Income Tax Act.
PMJJBY provides a risk coverage of 1 year. However, as this is renewable policy, it can be renewed yearly.
The GST charges are exempted on Pradhan Mantri Jeevan Jyoti Bima Yojana

Premium Amount:

Premium amount for this scheme is Rs.330/- per annum per member. The premium will be deducted from the account holder’s savings bank account through ‘auto debit’ facility in one installment, as per the option given, on or before 31st May of each annual coverage period under the scheme. Delayed enrolment for prospective cover after 31st May will be possible with full payment of annual premium and submission of a self-certificate of good health. The premium would be reviewed based on annual claims experience. However, barring unforeseen adverse outcomes of extreme nature, efforts would be made to ensure that there is no upward revision of premium in the first three years.

Eligibility Conditions:

The savings 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.
Individuals who join after the initial enrolment period extending up to 31st August 2015 or 30th November 2015, as the case may be, will be required to give a self-certification of good health and that he / she does not suffer from any of the critical illnesses as mentioned in the applicable Consent cum Declaration form as on date of enrollment or earlier.

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:

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 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 shall be liable to be forfeited.
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 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.

Administration:

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 installment, as per the option, from the account holders on or before the due date through ‘auto-debit’ process. Members may also give one-time mandate for auto-debit every year till the scheme is in force. Enrolment form / Auto-debit authorization / Consent cum Declaration form in the prescribed proforma shall be obtained and retained by the participating bank. In case of claim, LIC / insurance company may seek submission of the same. LIC / Insurance Company reserves the right to call for these documents at any point of time. The acknowledgement slip may be made into an acknowledgement slip-cum-certificate of insurance. The experience of the scheme will be monitored on yearly basis for re-calibration etc., as may be necessary.

Appropriation of Premium:

Insurance Premium to LIC / insurance company: Rs.289/- per annum per member
Reimbursement of Expenses to BC/Micro/Corporate/Agent: Rs.30/- per annum per member
Reimbursement of Administrative expenses to participating Bank: Rs.11/- per annum per member

The proposed date of commencement of the scheme will be 1st June 2015.The next Annual renewal date shall be each successive 1st of June in subsequent years. The scheme is liable to be discontinued prior to commencement of a new future renewal date if circumstances so require.