Pradhan mantri Jeevan jyoti bima yojana

Pradhan Mantri Jeevan Jyoti Bima Yojana (PMJJBY ) is a social benefit scheme launched on May 9, 2015, by the government. The PMJJBY scheme is a life cover for a fixed amount of Rs 2 lakh for an annual premium of Rs 330 and is available to people in the age group of 18 to 50 years having a bank account. The life coverage will be available until the age of 55 years. The one-time payment towards the PMJJBY will be automatically debited from one’s account. Therefore, one has to enable auto-debit while signing up for the scheme.

The life cover of Rs. 2 lakh shall be for the one year period starting from 1st June to 31st May every year. The PMJJBY scheme is a yearly renewable scheme and to continue one has to give the consent to the banks in the month of May every year.

Pradhan Mantri Jan Dhan Yojana with a aim to provide financial support through cheaper term insurance to empower the disadvantaged and economically low strata of society, with motto of “JanDhan se Jan Surakhsha”.Term insurance is a type of life insurance, provides coverage for a certain period of time or years. If the insured dies over the policy tenure a death benefit (or sum assured) is paid out.

This scheme will be linked also to the bank accounts opened under the Pradhan mantra jan dhan yojana scheme. Most of these account had zero balance initially. The government aims to reduce the number of such zero balance accounts by using this and related schemes.

Now all Bank account holders can avail this facility through their net-banking service facility or filling a form at the bank branch at any time of the year.

But, there are some problem create by this, the banks have complained that revenue received will be very low. Some bankers have claimed that amount they are receiving is not sufficient to cover the service costs. Since this is a [group insurance] scheme, banks have not received instruction regarding cases where excessive claims are in a year. Insurers have also pointed out that no health certificate or information of pre-existing disease is required for joining.

Government Contribution

  • Various other Ministries can co-contribute premium for various categories of their beneficiaries out of their budget or out of Public Welfare Fund created in this budget out of unclaimed money.  This will be decided separately during the year.
  • Common Publicity Expenditure will be borne by Government.

The premium paid towards the pmjjby scheme is applicable for tax exemption under sec 80c of the income tax act

 If the bank account has become inoperative or there are not sufficient funds, the coverage will lapse. Those who exit the scheme may re-join later by furnishing a declaration of good health and paying the annual premium.

If the insurance cover is ceased due to any technical reasons such as the insufficient balance on the due date or due to any administrative issues, the same can be reinstated on receipt of appropriate premium subject, however, to the cover being treated as fresh and the 45 days lien clause being applicable

For the cover period 1st June 2019 to 31st May 2020, subscribers are required to enroll and give their auto-debit consent by 31st May 2019. As on 23.04.2018, gross enrolment reported by banks subject to verification of eligibility, etc. was nearly 5.3382 crore, while the total number of claims received was about 100,881 and the total number of claims disbursed was nearly 92,089.

Even though the sum assured is very low, one may get it to supplement existing coverage. Ideally, as a thumb rule, one should have a life cover of at least ten times of one’s annual take-home income.

So, these all information covered under Jeevan jyoti bima yojana .and that is really an achievement of government to give them facility and financial support for under privileged people.