The PMJJBY scheme is a life cover 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.
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.
PMJJBY comes with risk coverage of Rs. 2 lakh in case of death of the insured, due to any reason. The premium is Rs. 330 per annum which is to be auto-debited in one installment from the subscriber’s bank account on or before 31st May of each annual coverage period under the scheme. One, therefore, needs to ensure that the account has sufficient balance on the due date. 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
The scheme is being offered by Life Insurance Corporation and all other life insurers who are willing to offer the product on similar terms with necessary approvals and tie up with banks for this purpose. For new enrolment, one can apply at the bank using the PMJJBY application form.
For those who wish to join the scheme now, here is the link for PMJJBY form download . (https://www.jansuraksha.gov.in/Forms-PMJJBY.aspx)
For the cover period 1st June 2019 to 31st May 2020, subscribers are required to enrol 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 assurd is very low, one may get it to supplment 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.