In India, a large proportion of the population still does not avail any kind of insurance cover which may compensate the dependents/family members in case of any tragic turn of events (death/illness/accident) of an individual.
Thus to boost the Social Welfare and Security System few schemes were announced by our Hon’able Finance Minister, Mr. Arun Jaitley during his Budget 2015-16 speech. The schemes included Pradhan Mantri Jeevan Jyoti Bima Yojana (Term Insurance), Pradhan Mantri Suraksha Bima Yojana (Accident Insurance) and Atal Pension Yojana (APY). These schemes aim to provide social protection to the individuals so that they can reduce their financial burden to a certain extent and sustain themselves.
Pradhan Mantri Jeevan Jyoti Bima Yojana (PMJJB) is a Term Insurance policy offered by the Government of India and would be administered by the Life Insurance Corporation of India and other Life Insurance Companies. The scheme is available through Nationalised Banks and they will have the option to chose the Life Insurance Companies for tie ups in order to provide cover to the end subscribers. The insurance cover provided under this scheme is very affordable and requires minimal formalities.
Let’s look at the Scheme in details:-
All savings bank account holders between the age group of 18- 50 years will be eligible to join the scheme. In case of individuals having multiple bank accounts in the same bank or different banks, can apply for the scheme only through one savings account.
In case of multiple applications, the additional applications will be rejected and the premium paid for the same shall be liable to be forfeited.
ENROLLMENT PROCESS AND PERIOD
Individuals can apply for the Scheme by filling up the form available at all the branches of participating bank where they have their Savings Account. One can also apply online through the window opened up by the banks for the same.
The process is simple and does not require any lengthy formalities.
The cover period will be of one year starting from 1st June,2015- 31stMay,2016. Subscribers can even enroll after 1st June for same but till 31st, August 2015, which may be extended by the Government of India by another 3 months.
Those who join subsequently (after the aforesaid period) will be able to do so on payment of the full annual premium along with a self-certificate of good health in prescribed format.
TENURE AND TERMINATION
The policy cover will be available for one year. Upon completion of the term the policy will be automatically renew and the premium for the policy will be deducted from the savings account of the individual through “auto debit” process.
Individuals will be covered under the scheme on renewal of the same till the age of 55 years, after which the policy cover will cease for the individual.
Policy will also terminate on closure of the Savings Account linked with the scheme, or in case of failure to maintain the minimum balance for the payment of the premium.
Individuals also have the option to exit the scheme and rejoin later on satisfying the terms and conditions of the policy.
PREMIUM AND PAYMENT PROCEDURE
Individuals have to pay an annual premium of Rs 330/- for the cover. The premium will be automatically debited from the Savings account registered under the scheme.
Policy will pay Rs 2,00,000/- to the nominee in case of death of the policy holder.
NO SURRENDER/MATURITY VALUE
No surrender or maturity value is payable against the insurance premium paid. It is a term insurance which will simply provide Insurance Cover.
Tax Deductions will be available U/S 80C on the premium paid.
CLAIM SETTLEMENT PROCEDURE
Participating Banks will be the Master Policy Holders and they in consultation with the respective Life Insurance companies will formulate a simple claim settlement process which would reduce the hassles for the subscribers.