Pradhan Mantri Jeevan Jyoti Bima Yojana, in short PMJJBY, is a life insurance scheme backed up by the Indian Government. Our Prime Minister Narendra Modi started this scheme on the 9th of May, 2015. The announcement of this scheme was initially made by our former Finance Minister, late Mr Arjun Jaitley, during the budget speech of the year 2015.
Pradhan Mantri Jeevan Jyoti Bima Yojana scheme aims to increase the percentage of the Indian population that holds any insurance that directly or indirectly moves towards establishing a universal social security system, especially targeting the unprivileged and poor people.
WHAT IS THE SCHEME OF PRADHAN MANTRI JEEVAN JYOTI BIMA YOJANA
Pradhan Mantri Jeevan Jyoti Bima Yojana scheme covers an individual for one year only and can be renewed yearly. This insurance scheme offers life insurance cover for death regardless of its reason.
This scheme is administered through Life Insurance Corporation(LIC) and some other life insurance companies willing to give the service meeting similar criteria with the approvals which are necessary & bank tie-ups for this purpose. The participating banks are free to activate any such insurance companies to implement this scheme for their subscribers.
ELIGIBLE FOR PMJJBY
● Every individual within the age group of 18 to 50 years will be entitled to engage with this scheme. All they need is to have a savings bank account in any of the participating banks.
● The individual needs to have a savings account in any participating banks. But that individual can have multiple savings accounts. So, to avoid these circumstances, the system ensures that one individual can join or have the benefits of this scheme through one savings account only.
● The Aadhar Card of a person would be the primary document that will initiate the KYC procedure.
● Insurance buyers joining the Pradhan Mantri Jeevan Jyoti Bima Yojana scheme between 31/08/2015 to 30/11/2015 must provide a self-attested medical certificate from any central medical hospital proving that the person is not suffering from any severe illness.
WHAT ARE THE DOCUMENTS REQUIRED FOR PRADHAN MANTRI JEEVAN JYOTI BIMA YOJANA?
● Aadhaar card number & PAN card number of the person.
● KYC document in respect of the person
● First two pages of the passbook, bank passbook, or post office account statement show account details or a cancelled cheque given by the person.
BENEFITS OF PMJJY SCHEME
The following are the benefits of Pradhan Mantri Jeevan Jyoti Bima Yojana: 1. Death Benefit: In the insurance holder’s death case, the nominee gets the death benefit of 2lakh rupees from the Pradhan Mantri Jeevan Jyoti Bima Yojana. 2. Tax Benefit: This premium-paid policy is applicable for the tax exemption under section 80C of the Income Tax Act. If the person fails to submit, the 15G or 15H from the life insurance policy exceeding 1 lakh rupees will be taxable at the interest rate of 2%.
3. Risk Coverage: The Pradhan Mantri Jeevan Jyoti Bima Yojana scheme gives coverage against 1year of risk. The yearly renewable policy can be renewed annually. And the insurance person can choose for a longer term of more than one year by selecting the auto-debit linked to the insured person’s savings bank account.
4. Tenure: The Pradhan Mantri Jeevan Jyoti Bima Yojana scheme gives coverage for one year from the policy’s enrollment date. The insurance person can renew the scope of The Pradhan Mantri Jeevan Jyoti Bima Yojana plan every year till the age of 55 years. If the insured policy person wants to discontinue the policy, then the person can stop it by not renewing it. And if the holder intends to rejoin the procedure, he can join the policy anytime by paying the policy premium and submitting the health certificate.
5. Coverage: The amount offered by The Pradhan Mantri Jeevan Jyoti Bima Yojana scheme is Rs. 2 lakh. In case of uncertain death of the policyholder, the beneficiary can accept the coverage, and it is tax-free to the nominee. The Pradhan Mantri Jeevan Jyoti Bima Yojana gives a very suitable and hassle-free settlement process.
HOW CAN WE APPLY FOR PRADHAN MANTRI JEEVAN JYOTI BIMA YOJANA SCHEME?
We can apply for The Pradhan Mantri Jeevan Jyoti Bima Yojana scheme in two ways. The following ways are:
ONLINE METHOD:
● Open the website (https://financialservices.gov.in/)
● Log in to your account.
● Go to e-services and click on more.
● Find the ‘social security schemes(PMJJBY/ PMSBY/ APY)’ option and click on it. ● Press ‘apply’ and fill in your details.
● Click on the ‘submit’ button, and a new page for registration will open. ● Fill in the registration form carefully and click on submit.
● You can check its status afterwards from the same portal by clicking on the ‘status’ button.
OFFLINE METHOD:
● Visit the nearest affiliated bank or insurance company.
● Ask for Pradhan Mantri Suraksha Bima Yojana form.
● Fill it up and submit the form with your supporting documents and proof to the insurance company or affiliated bank.
ROLES AND RESPONSIBILITIES OF PRADHAN MANTRI JEEVAN JYOTI BIMA YOJANA SCHEME
Once the bank receives the documents submitted, they will start verifying if the deceased individual was covered under the scheme or not. Once verified, the claim form will be forwarded by the bank to the insurance company. This process has to be done by the bank within 30 days.
The insurance company then checks that no other settlement claim has been processed for the insured individual through any different bank account. Once the company makes sure that documents are in order, the payment is released by the insurance company and intimation is sent to the bank and the nominee.
The maximum approval time limit for the claim from the insurance company is 30 days from the claim receiving data from the bank to the insurance company.
A maximum of 60 days is required by the bank and insurance company combined to initiate the process of claiming from the date of submission of the documents.
HOW TO CLAIM PRADHAN MANTRI JEEVAN JYOTI BIMA YOJANA Scheme?
A non-renewed approach won’t be of any help. Any nominee of the policyholder can claim the money that has been assured by the Government under the PMJJBY scheme when the insured person dies. They need to make sure that the policy was active during the time of the death. And one needs to keep in mind the policy automatically ceases when the insured individual turns more than 55years of age, so claims after this won’t be filled.
STEPS AND PROCEDURES TO CLAIM THE PRADHAN MANTRI JEEVAN JYOTI BIMA YOJANA SCHEME
The following documents are needed to be submitted to claim this scheme:
● The nominee of the insured person initially needs to collect the insured person’s death certificate under this scheme. The certificate needs to be collected from the Municipal Corporation.
● After that, the individual must collect a claim form and a discharge receipt from a bank or other sources like a hospital, insurance company branch, etc.
● Then, the policyholder must fill out the claim form and submit it to the bank when enrolled under this scheme.
● Then, the policyholder must submit the correctly filled up Discharge Receipt at the same bank along with the death certificate collected initially.
● And lastly, the nominee must provide a cancelled cheque from their bank to receive the claim money.
How to Check Pradhan Mantri Jeevan Jyoti Bima Yojana Status?
The nominee can online check his claim’s status in the Pradhan Mantri Jeevan Jyoti Bima Yojana scheme. The following steps to follow are:
● Open the website (https://financialservices.gov.in/)
● Log in to your account.
● Go to e-services and click on more.
● Find the ‘social security schemes(PMJJBY/ PMSBY/ APY)’ option and click on it. ● As the nominee has applied to the Pradhan Mantri Jeevan Jyoti Bima Yojana scheme beforehand, they don’t need to apply again. The nominee can check the status of his claim from the dashboard.
If the nominee applied the claim offline, then they have to go to their respective banks or insurance company where they have used to check their claimed status.
CONCLUSION
Pradhan Mantri Jeevan Jyoti Bima Yojana is India’s government-backed accident insurance scheme.
It offers risk coverage of Rs.2 lakh for accidental deaths and total disability and Rs.1 lakh for partial disability. It’s an easy registration process, and you can apply online or offline. The form is also available for download on their official site.
This plan also provides the low-income earning families in the society hope in the absence of the bread earner and will support them to have a secure life.