Here we are providing all the details on PM Jeevan Jyoti Bima Yojana. The new Union budget 2015-16 has brought along a number of social alleviation Modi schemes that include lower premium insurance to ensure that the benefits of insurance services are penetrated deep into the national demographic. Among them, Pradhan Mantri Jeevan Jyoti Bima Yojana lists foremost for being an affordable and low premium insurance policy. Quite similar to Pradhan Mantri Suraksha Bima Yojana, this scheme too would be linked to Pradhan Mantri Jan Dhan Yojana.
Note :- Just got an email from SBI that PMJBY has been started and The insurance cover will start from 01.06.2015 to 31.05.2016 and will be required to be renewed every year.
For long, there was a need for insurance and other beneficial banking products and services to be made affordable to the common public and with so many social schemes being launched in this budget, the Indian Audience would not ask for more.
Features of Pradhan Mantri PM Jeevan Jyoti Bima Yojana (PMJJBY)
- The Eligibility for availing benefits: The Pradhan Mantri Jeevan Jyoti Bima Yojana offers insurance cover to any Indian Citizen falling under the age group of 18 to 50 years and having a bank account under Pradhan Mantri Jan Dhan Yojana. Anyone who opens an account under this scheme before 50 years of age would be covered till 55 years of age, provided the premium has been paid regularly.
- How can anyone subscribe :- As we have already mentioned that Pradhan Mantri Jeevan Jyoti Bima Yojana would be linked to PM Jan Dhan Yojana, anyone wanting to be covered under this scheme would have to have a saving account under the Jan Dhan Yojana and would also have to link his or her Aadhar number to the saving account. After the Aadhar number is linked to the saving bank account, the applicant would have to fill a simple form each year before 01st of June to ensure that the scheme is renewed every year. There could be an automatic process also to deduct money each year.
- Nomination facility: Just like any other insurance scheme, Pradhan Mantri Jeevan Jyoti Bima Yojana too has nomination facility in which the insured money would be transferred to the nominee in case of death of the policy holder. In the form provided for filling, the policy holder can nominate one person for the policy and has to show his or her relationship with the nominee. If the nominee is a minor, the policy holder would have to provide name of the guardian of the minor nominee.
- Low and affordable Premium : Pradhan Mantri Jeevan Jyoti Bima Yojana has a very low premium of Rs 330 per year, which makes it less than Rs 1 per day. The premium has been kept low since the Pradhan Mantri Jeevan Jyoti Bima Yojana targets every sections of society including those living below poverty line. Such type of low amount can be afforded by any person in India and thus they can be covered under a life insurance scheme.
- Mode of payment for Annual Premium: Pradhan Mantri Jeevan Jyoti Bima Yojana does not allow premium to be paid quarterly or monthly. The entire premium would have to be paid once every year and would be auto – debited from the policy holders PM Jan Dhan Yojana Bank Account. No other modes of payment have yet been announced, but since the scheme would depend on government’s policies every year, we can expect slight changes in the coming times.
- What is the Risk Cover: Pradhan Mantri Jeevan Jyoti Bima Yojana covers a risk of Rs 2 lakh in case of natural or accidental death of the policy holder. The assured amount would be given to the nominee in case of death of the policy holder.
- The Term of Risk Cover :- So far, there are two possible options that this scheme offers to the policy holder: The policy holder can renew the policy every year in the month of June by visiting the branch and filling up the required form. In this case, the premium amount would be auto – debited from policy holder’s account.The second option allows policy holder to opt for a longer duration of renewable, say 2-4 years, in which the payable premium would be auto – debited from policy holder’s account every year.
- Whom to contact: Since this is a government sponsored scheme, it would be available at any public sector company for general insurance such as Life Corporation of India (LIC). In order to get this scheme, all you have to do is walk into any of the listed general insurance companies and meet the concerned official. A lot of nationalized banks, which has a tie-up with public sector general insurance companies, would also offer this scheme at their premises.
- Government Contribution: As a government backed scheme, Pradhan Mantri Jeevan Jyoti Bima Yojana would have major contributions from the public welfare funds pooled in by the government. The exact percentage of contribution per year would be decided by the government every year and would depend on the overall health of the economy.
- Tax benefits: There are no tax benefits attached to this scheme as of now.
Drawbacks or Disadvantages of Pradhan Mantri PM Jeevan Jyoti Bima Yojana
Since this is a new scheme and still nobody would have registered in this so I am not sure about any drawbacks of this scheme. I would request my readers to come up with the issues that that would face in availing this scheme. The only problem that i can see is most of the poor people do not have a proper tracking system regarding their financial life so what would happen that if they unconsciously are not able to fill the required form in time every year.
Difference between Pradhan Mantri Jeevan Bima Yojana and Pradhan Mantri Suraksha Bima Yojana
|S.NO||Key difference||Pradhan Mantri Jeevan Jyoti Bima Yojana||Pradhan Mantri Suraksha Bima Yojana|
|1||Premium amount||Rupees 330 per year||Rupees 12 per year|
|2||Coverage Period||Till 50 years of age||No time limit|
|3||Coverage Rules||Death Coverage (accidental or normal)||Accidental coverage ( 2 lakh full or 1 lakh partial)|
|4||Age Limit||Between 18 to 50 years||18 Years or more|
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