Many savings account holders are finding a debit entry of Rs 330 in their bank statements. For others, such a deduction may happen anytime in the month of May if they have enrolled themselves in the Pradhan Mantri Jeevan Jyoti Bima Yojana (PMJJBY), the government of India’s insurance scheme. The renewal date of PMJJBY falls on June 1 each year and the banks deduct the charges anytime in May to ensure the scheme benefits are available to the individual.
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. It is better to check your bank statement to see if there has been more than one deduction of Rs 330. In that case, you will have to write to the other bank to reverse the charges as the claim amount is to be provided only once.
PMJJBY is a one-year life insurance scheme, renewable from year to year, offering coverage for death due to any reason and 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. The cover is for a one-year period, starting June 1 to May 31.
Under PMJJBY scheme, a life cover of Rs. 2 lakh ( term insurance) is available at a premium of Rs.330 per annum per individual and the scheme is automatically renewable every year.
In 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.
This is how the break-up of the premium works –
a. Insurance Premium to LIC /other insurance company: Rs.289 per annum per member
b. Reimbursement of expenses to agent/bank: Rs.30 per annum per member
c. Reimbursement of administrative expenses to the participating bank: Rs.11 per annum per member.
The banks will also be sending a reminder SMS or email informing about the deduction of Rs 330 from their bank account. As it is an auto-renewal scheme, the amount of Rs 330 will automatically get debited from the savings account. It is important to ensure that there is a sufficient balance in your bank account during the month of May.
If you have already enrolled for the PMJJBY scheme, no fresh mandate or approval needs to be made. The authorization given by the subscriber to the banker, at the time of filing application form for the first time, ensures that the scheme is renewed every successive year through auto-debit.
If you wish to get PMJJBY, you may do so if you are eligible for the scheme. However, for new buyers of the plan, risk cover under PMJJBY is applicable only after the first 45 days of enrolment. In other words, insurers do not have to settle claims during the first 45 days from the date of enrolment. However, deaths due to accidents will be exempt and will still be paid.