22 May 2015

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Facts about Rs. 330 Pradhan Mantri Jeevan Jyoti Bima Yojana Life Insurance

Facts about Rs. 330 Pradhan Mantri Jeevan Jyoti Bima Yojana Life Insurance

Indian Government launched 3 schemes which will benefit the Indian citizens.

Below are the names of 3 Schemes
1-
Pradhan Mantri Jeevan Jyoti Bima Yojana (Life Insurance)

2-
Pradhan Mantri Suraksha Bima Yojana (Accidental Death & Disability Insurance)

3-Atal Pension Yojana (Pension Scheme)

Below the important facts about Pradhan Mantri Jeevan Jyoti Bima Yojana Life Insurance

1.
What is the nature of the scheme?
The  scheme  will  be  a  one  year cover Term  Life  Insurance  Scheme,  renewable from year to year, offering life insurance cover for death due to any reason.

The schemes is based or build on the existing Aam Aadmi Bima Yojana started in 2007 to extend insurance to poor citizens
Example –
Landless agriculturists and workers in the unorganized sector, such as beedi workers, fishermen

2.
What would be the benefits under the scheme and premium payable?
Rs.2 lakhs is payable on a subscriber’s death due to any reason. The premium payable is Rs.330/- per annum per subscriber.

3.
How will the premium be paid?
The premium will be deducted from the  account holder’s savings bank account through ‘auto  debit’  facility  in  one  installment,  as  per  the  option  to  be  given  on  enrolment.
Members may also give one-time mandate for auto-debit every year till the scheme is in force, subject to re-calibration that may be deemed necessary on review of experience of the scheme from year to year.

4.
Who will offer / administer the scheme?
The  scheme  would  be  offered  /  administered  through  LIC  and  other  Life  Insurance companies  willing  to  offer  the  product  with  necessary  approvals  on  similar  terms,  in collaboration  with  participating  Banks.  Participating banks will be free to engage any such life insurance company for implementing the scheme for their subscribers.

5.
Who will be eligible to subscribe?
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.

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,  will  be  enrolled  into  the  scheme.

6.
What is the enrolment period and modality?
Initially on launch for the cover period from 1st June 2015 to 31st May 2016 subscribers are expected to enroll and give their auto-debit option by 31st May 2015, extendable up to 31st August 2015. Enrolment subsequent to this date will be possible prospectively on payment of full annual payment and submission of a self-certificate of good health.

Subscribers who  wish  to  continue  beyond  the first  year will  be  expected  to  give  their consent for auto-debit before each successive May 31st for successive years.

Delayed renewal subsequent to this date will be possible on payment of full annual premium and submission of a self-certificate of good health.

Individuals who join after the initial enrollment 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.

7.
Can eligible individuals who fail to join the scheme in the initial year join in
subsequent years?
Yes, on payment of premium through auto-debit and submission of a self-certificate of good health. New eligible entrants in future years can also join accordingly.

8.
Can individuals who leave the scheme rejoin?
Individuals who exit the scheme at any point may re -join the scheme in future years by paying the annual premium and submitting a self-declaration of good health.

9.
Who would be the Master policy holder for the scheme?
Participating Banks will be the Master policy holders. A simple and subscriber friendly administration & claim settlement process shall be finalized by LIC / chosen insurance company in consultation with the participating bank.

10.
When can the assurance on life of the member terminate?
The assurance on the life of the member shall terminate / be restricted accordingly on any of the following events:
i.
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).

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

iii.
In  case  a member is  covered  through  more  than  one  account  and  premium  is received  by  LIC  /  insurance  company  inadvertently,  insurance  cover  will  be restricted to Rs. 2 Lakh and the premium shall be liable to be forfeited.

11.
What will be the role of the insurance company and the Bank?
i.
The  scheme  will  be  administered  by  LIC  or any  other Life  Insurance  company which is willing to offer such a product in partnership with a bank / banks.

ii.
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 and transfer the amount due to the insurance company.

iii.
Enrollment form / Auto-debit authorization / Consent cum Declaration form in the prescribed  proforma,  as  required,  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 also reserve the right to call for these documents at any point of time.

12. How would the premium be appropriated?
a.
Insurance Premium to LIC /other insurance company:  Rs.289/- per annum per member

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

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

13.
Will this cover be in addition to cover under any other insurance scheme the subscriber may be covered under?
Yes it will be

14-
Bank account holders aged between 18 and 50 years are eligible to apply for this scheme. So, if you are aged more than 50 years, you are not eligible to enroll yourself for this scheme.

15-
The premium is fixed at Rs. 330 for a life cover of Rs. 2 lacs.
This annual premium of Rs. 330 has been fixed for the first three years from June 1, 2015 to May 31, 2018, after which it will again be reviewed based on the insurers’ annual claims experience.

16-
The scheme would be offered / administered by the Life Insurance Corporation (LIC) and other life insurance companies like SBI, ICICI etc.

17-
Annual premium of Rs. 330 will get deducted from your savings bank account through auto debit facility. You will have to give your consent for auto debit of premium

18-
May 31, 2015 is the last date for getting enrolled for this scheme, but the government has given an extension of three months up to August 31, 2015 to get enrolled and give auto-debit consent for this scheme.

19-
Aadhaar Card will be the primary requirement for your KYC under this scheme.

20-
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.

21-
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:

1)
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).

2)
Closure  of  account  with  the  Bank  or  insufficiency  of  balance  to  keep  the insurance in force.

3)
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.

4)
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.

5)
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.

The scheme is liable to be discontinued prior to commencement of a new future renewal date if circumstances so require.

One can get the application form from SBI or LIC or the insurance company which is participating in the above scheme.

In short scheme is good but do you think any insurance company will pay Rs. 2 Lakh for just Rs. 330 premium.

Just think about this before joining the scheme.

Or

Just play the gamble of Rs. 2 Lakh by paying premium of Rs. 330

Something is better than nothing



Reality views by sm –

Friday 22 May 2015

Tags – Life Insurance Rs. 330 per Year Facts Features

12 comments:

Destination Infinity May 23, 2015  

I guess limiting this scheme to persons below 50 years is what makes the premium so low. Thanks for writing a detailed article about this topic.

Destination Infinity

Renu May 23, 2015  

This is the best initiative and will go a long way in helping ommon people.

NITINIYATI May 25, 2015  

We gate what we want thanks a lot

Vineeth VK May 25, 2015  

Regarding PMJJBY, Is there any money returned to insurer on maturity of policy? or only death coverage before 55 years only exists? What about the other policies by Lic, state bank, kotak listed in comparison?

SM May 25, 2015  

@Vineeth VK

thanks.
this policy is useful for the Indian citizens who can not afford any other policy who live below poverty line.

Unknown July 12, 2016  

I have a doubt that can a govt employee take this lic

Kalpana Bhashyam July 12, 2016  

I have a doubt that can a govt employee take this lic