Indialends, 27 Jul 2023

Share

Pradhan Mantri Jeevan Jyoti Bima Yojana

What’s Inside This Blog?

What is LAMF Finance Charges (Interest Rates) Late Payment Fees Cash Advance Fees

The Pradhan Mantri Jeevan Jyoti Bima Yojana is a kind of Life insurance scheme backed by the Government of India. It was announced in the 2015 budget. This scheme comes with a validity of one year and gets renewed from year to year. The scheme is offering coverage in case of sudden demise. It provides a coverage of Rs 2 Lakh on the sudden demise of a policyholder for a nominal premium of Rs.330 per annum.

It is purely an insurance scheme, unlike others that are purchased for investment reasons too. The scheme is offered by the Life Insurance Corporation of India, but other insurance companies are also willing to offer the product on similar terms and conditions, in collaboration with banks.

Eligibility Criteria for Pradhan Mantri Jeevan Jyoti Bima Yojana

• The Individual can join the scheme through one bank account only, even if he or she is the account holder of multiple banks.
• In the case of joint account holders, all holders are eligible to join the scheme
• It is mandated to have a linking of Aadhaar and Savings.

Benefits of enrolling in Pradhan Mantri Jeevan Jyoti Bima Yojana Scheme 

• The scheme is offering a life cover of Rs 2 Lakh to the beneficiary in case of the sudden demise of the policyholder.
• One can make a claim under this scheme only in sudden demise. No benefit is available at the time policy gets matured or surrender of the policy.
• The premium paid for Pradhan Mantri Jeevan Jyoti Bima Yojana gets tax exemption under section 80C of the Income Tax Act, 1961.

What will be the premium amount of PMJJBY?

The premium to be paid is Rs 330 per person per annum. The breakup of the premium are as follows:

• PMJJBY scheme premium paid to the insurance company - Rs. 289 per annum per member.
• Reimbursement of expenses charged to the bank or the agent - Rs. 30 per annum per member.
• Reimbursement of the administrative costs to the participating bank - Rs. 11 per annum per member.

The procedure to enroll under Pradhan Mantri Jeevan Jyoti Bima Yojana

An individual can join the scheme by approaching the bank in which he or she has a saving account. The responsibility of managing the scheme is on the Life Insurance Corporation of India and other private life insurance companies. Those who wish to enroll under PMJJBY have to pay the full annual premium amount anytime during the year. Those who have made an exit from the scheme can also join back by making the payment of the annual premium.

The procedure of claiming under this scheme

From nominee of the Policy Holder

In case of the death of the policyholder, the claim process will be handled by the respective Pension and Group Scheme (P&GS) Office/Unit of LIC. The process for claim settlement is as follows:

• The nominee of the policy will have to approach the bank of the policyholder, which is linked to the PMJJBY scheme.
• The nominee must submit the death certificate of the policyholder.
• Post that, the nominee has to collect the claim form and discharge receipt. It can be collected from the bank or download the forms from the website of LIC, Bank, Jansuraksha portal of the Finance Ministry.
• The nominee must then submit the claim form, discharge receipt, death certificate, and the xerox copy of a canceled cheque of the nominee’s bank account if available, if not he must share the bank details of the savings bank account of the policyholder that is linked to the PMJJBY scheme.

From Bank

On receipt of the application, the bank official verifies whether the policy is active or not. The bank will take out the premium details for the said cover on the Annual Renewal Date, i.e., 1st of June, before the member’s death was deducted and remitted to the respective P&GS Unit of LIC.

If the bank confirms about the policy is active, they will further check the nominee details and claim form. After verifying all the details, they will fill out the relevant columns of the claim form.

The bank must then submit the following documents to the designated P&GS office of LIC:

• Duly filled claim form
• Death Certificate
• Discharge Receipt
• Photocopy of the canceled cheque of the nominee (if available)

The time limit for submitting the claim form to the designated P&GS office of LIC is 30 days from the receipt of the claim form from the nominee.

By Designated P&GS Unit

• Verification of the claim form and the documents attached and ensure completeness. If not, contact the bank concerned.
• Next, the Designated P&GS Unit will do the verification regarding the member’s coverage is in force and no death claim settlement has been previously made through any other account. If any claim has been settled previously, the nominee will be informed, and a copy will be marked to the bank.
• If this is the only claim settlement, then the amount will be credited to the nominee’s bank account or policyholder account, and an acknowledgment will be sent to the nominee and a copy marked to the bank.
• The insurance company has to settle the claim in 30 days from the receipt of the claim from the bank.