Pradhan Mantri Jeevan Jyoti Bima Yojana: What are it’s Features and Details?
What is Pradhan Mantri Jeevan Jyoti Bima Yojana?
The Pradhan Mantri Jeevan Jyoti Bima Yojana (PMJJBY) is a one-year, renewable life insurance programme that provides coverage for fatalities. PMJJBY is a pure term insurance policy that does not include any investment components and just covers mortality.
This plan, which provides life insurance coverage for deaths resulting from any cause, is a one-year insurance plan. The Life Insurance Corporation of India (LIC) and other Life Insurance firms willing to provide the product on comparable conditions with the necessary approvals and tie-ups with Banks for this purpose would offer/administrate the plan.
People who are between the ages of 18 and 50 (life insurance covers up to age 55) and have a savings bank account are eligible to use PMJJBY. Interested parties who agree to sign up and allow auto-debit are eligible to benefit from this programme.
The PMJJBY plan offers a 2 lakh rupee life insurance policy that is renewed annually at a price of 330 rupees per participant. If someone has a joint account, all of the account holders may join the programme as long as they all agree to the Rs. 330 per person premium payment and fulfil the program’s eligibility requirements.
Features of Pradhan Mantri Jeevan Jyoti Bima Yojana
Maturity: There are no surrender or maturity advantages under this plan.
Enrolment: Participating banks or post offices may be Master policyholders. The first of June or the day the insured member enrols in the programme, whichever comes later, marks the beginning of the insurance coverage. The insurance coverage is good until the end of May of the following year. Depending on the option chosen on signing up for the plan, the premium will be taken out of the account holder’s bank or post office account all at once
Exclusion: For new members joining the scheme, insurance coverage won’t be available for deaths (other than those caused by accidents) occurring within the first 30 days of enrollment (referred to as the “lien period”), and no claims will be admissible if they do.
Benefits with regard to taxes: Section 80C of the Income Tax Act allows policy premiums to be written off as business expenses.
How Do I Sign Up for the PMJJBY Scheme?
This program’s enrollment procedure has been made clear and straightforward. Through the Life Insurance Corporation of India (LIC) and other private life insurance firms in India, PMJJBY is handled. If a bank has a relationship with an insurance company, one can also speak with that banker about the enrollment procedure. Even if a person has numerous bank accounts with one or more institutions, only one of those accounts would be eligible for enrollment in the programme.
One may renew the plan at any point throughout the year by paying the entire premium rather than the proportional amount, so those who want to join the programme now still have the option to do so.
How do I submit a claim to the PMJJBY scheme?
- The actions listed below can be used by nominees to apply for the claim process. What a beneficiary must do is as follows:
- The beneficiary must visit the bank that has been linked to this plan’s savings account in the event that an insured passes away. The death certificate of an insured must be provided by a nominee.
- The nominee will next need to get a claim form from the insurance or a particular bank.
- Now, fill out this form and provide all the required supporting documentation, including a photocopy of a cancelled cheque, a discharge receipt, a death certificate for the insured, and lastly, the nominee’s bank information.
What the bank does is as follows:
- The claim form and any other documentation submitted by a nominee will be validated and verified by the bank.
- After verification is complete, the bank will send the insurance company the necessary paperwork.
- Finally, an insurer or insured firm will take the following actions:
- After a bank sends an insurance company a claim request, the insurance company will check all the supporting documentation.
- The recipient will get the claim amount into their bank account following a successful document verification.
Thus, the Pradhan Mantri Jeevan Jyoti Bima Yojana provides money to the poor who have a bank account. However, one must be aware of the qualifying conditions, advantages, claim procedure, and other crucial elements, as indicated above, while applying to this plan.
