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.
The cover period is 1st June of each year to 31st May of subsequent year. For the cover period 1st June 2018 to 31st May 2019, subscribers are required to enrol and give their auto-debit consent by 31st May 2018. Those joining subsequently would be able to do so with payment of full annual premium for prospective cover. As on May 14, 2018, nearly 5.35 crore people had enrolled under PMJJBY, and the total number of claims received till date were nearly 1,02,849.
PMJJBY is available to people in the age group of 18 to 50 years ( life cover up to age 55) having a savings bank account who give their consent to join and enable auto-debit.
Under PMJJBY scheme, life cover of Rs. 2 lakhs is available at a premium of Rs.330 per annum per member and is renewable every year. In the case of a joint account, all holders of the said account can join the scheme provided they meet its eligibility criteria and pay the premium at the rate of Rs.330 per person per annum.
PMJJBY is administered through LIC and other Indian private life insurance companies. One may also approach their bankers as for the process of enrolment banks have tied up with insurance companies. In the 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.
For those who wish to join the scheme now may still do so. On may join or renew the scheme anytime during the year by paying the full premium and not the proportionate amount. However, the renewal date will remain June 1 for all of the subscribers.
It’s better to join now and get the cover for the entire 12 months. If you had exited the scheme at any point, you may still re-join the scheme by paying the annual premium.
The enrolment process has been kept simple and easy. To enrol, you can download the form and submit it to your banker. Some banks have initiated an SMS-based enrolment process too. It can be done through net banking also. 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.
- This policy is available for the people between the age of 18-50 years. The policy ceases at 55 years of age of the policy holder.
- 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 birthday) 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.
- A person can join PMJJBY with one Insurance company with one bank account only.
- For 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.
How to apply?