While delivering the budget speech in the year 2015, the Finance Minister of India, for the very first time introduced ‘Pradhan Mantri Jeevan Jyoti Bima Yojana’. Later on, the Pradhan Mantri Jeevan Jyoti Bima Yojana was launched on 9th May, by the Prime Minister of India, Shri Narendra Modi.
Features; eligibility criteria; premium amount and allocation thereof and termination of the assurance under the Pradhan Mantri Jeevan Jyoti Bima Yojana are briefly explained in the current article.
Page Contents
- Features of Pradhan Mantri Jeevan Jyoti Bima Yojana-
- Eligibility conditions to be satisfied under Pradhan Mantri Jeevan Jyoti Bima Yojana-
- Premium amount and allocation thereof under Pradhan Mantri Jeevan Jyoti Bima Yojana-
- Termination of the assurance available under Pradhan Mantri Jeevan Jyoti Bima Yojana-
Features of Pradhan Mantri Jeevan Jyoti Bima Yojana-
The features of Pradhan Mantri Jeevan Jyoti Bima Yojana are highlighted hereunder-
- The Scheme provides one year of life insurance cover against death due to any reason;
- The Scheme is renewable on year to year basis;
- The Scheme covers a yearly period starting from 1st June to 31st May;
- It is mandatory to have a savings bank account for joining under the Scheme;
- The Scheme offers insurance cover of INR 2 Lakhs which will be payable on account of the death of the beneficiary due to any reason;
- Life insurance cover of INR 2 Lakhs is provided at a lower premium amount of INR 330 per annum;
- Such premium amount of INR 330 will be deducted on yearly basis from the savings bank account linked for auto debit under the yojana.
Eligibility conditions to be satisfied under Pradhan Mantri Jeevan Jyoti Bima Yojana-
The eligibility criteria under the Pradhan Mantri Jeevan Jyoti Bima Yojana are narrated hereunder-
1. Should be aged between 18 years and 50 years;
2. Should be a holder of the savings bank account of the participating banks;
3. Should have given the consent to enable auto debit of the premium amount; as per the scheme modality; and
4. Should give a self-certification of good health and also that they are not suffering from any critical illness as mentioned in consent-cum-declaration form as on the date of enrolment.
Premium amount and allocation thereof under Pradhan Mantri Jeevan Jyoti Bima Yojana-
Member is required to pay INR 330 per annum as a premium amount under the Pradhan Mantri Jeevan Jyoti Bima Yojana. The said premium amount of INR 330 per annum is allocated in the following manner-
| Details | Amount of premium allocated |
| Insurance premium to LIC/ insurance company | INR 289 per annum |
| Reimbursement of expenditure to BC/ micro/ corporate/ agent | INR 30 per annum |
| Reimbursement of administrative expenditure to the participating bank | INR 11 per annum |
| Total premium amount | INR 330 per annum |
Termination of the assurance available under Pradhan Mantri Jeevan Jyoti Bima Yojana-
On the occurrence of any of the following event, the benefit available under Pradhan Mantri Jeevan Jyoti Bima Yojana will be terminated-
1. On attaining the age of 55 years subject to annual renewal up to that date. It is important to note here that entry into the yojana is restricted after attaining the age of 50 years; or
2. Closure of the savings account in the bank which is linked for auto debit under Pradhan Mantri Jeevan Jyoti Bima Yojana; or
3. Insufficient balance in the linked savings bank account during the auto debit of the premium amount.
Notably, if a beneficiary is covered under the Pradhan Mantri Jeevan Jyoti Bima Yojana via more than one account and, accordingly, the premium is received from all the accounts by the insurance company. In such a case, the life insurance cover available under the yojana will be restricted to only one and the premium paid through other accounts will be forfeited.
Author Bio
