Life Insurance is a way to ensure that the family members of the deceased who might be the only bread-winner in the family, don’t have to face financial troubles paying for the daily expenses, housing payments or other loans or mortgages.

Life Insurance continues to provide cover even after one has retired and the retiree is not getting any insurance from the erstwhile employer.

Pradhan Mantri Jeevan Jyoti Beema Yojana: Highlights

• Pradhan Mantri Jeevan Jyoti Beema Yojana is one such kind of insurance scheme that offers insurance for a year, subject to the mandatory renewal on an annual basis, providing coverage for death. Launched on 9th May 2015 by Prime Minister Narendra Modi, the scheme was availed by more than 05 crore people by 2018.
• The scheme holds validity for one year and has to be renewed annually, providing insurance for death owing to any reason. The policy is offered primarily through LIC (Life Insurance Corporation of India); however, other non-governmental Life Insurance Companies also have the mandate to provide the policy following the similar terms and consent from the banks.
• All individuals, aged between 18 to 50 years are eligible to avail this scheme. The insured can avail the life cover of Rs. 2 Lakhs. The annual premium for an individual availing the scheme is Rs. 330.
• The annual premium amount applies to every member purchasing the policy. Suppose a bank account is held jointly by more than one member. In that case, all the joint account holders are eligible to avail the scheme if they fulfil the eligibility criteria at the annual premium amount of Rs 330 to be paid per person.

The Break-up Of Premium Amount

The premium amount of Rs. 300 is shared by the following stakeholders:

• To the insurance company - Rs. 289
• To the Agent / bank - Rs. 30
• Administrative cost to the bank – Rs. 11

Pradhan Mantri Jeevan Jyoti Beema Yojana: Eligibility

1. An individual seeking the policy must be between 18 to 50 years of age.
2. He/she must have a savings bank account with the auto-debit facility enabled.
3. The account holder must have got his/her Adhar Card linked to the account.
4. If one has joined the scheme after the initial enrolment period – from 31st of August, 2015 – 30th November, 2015, a self-attested medical certificate declaring that he/she doesn’t have any terminal illness, must be submitted along with.

How To Enroll For Pradhan Mantri Jeevan Jyoti Beema Yojana

• Anyone seeking to purchase the policy can either get it from LIC (Life Insurance Corporation of India) or private insurance companies. One can buy the policy from his/her bank as well if their bank has affiliated with insurance companies.
• Though the official policy renewal date is 1st June, the option to join the scheme anytime during the year is given to the buyers.

How Does Scheme Work?

The realisation of the claim is complete only after the following process to furnish the required documents and have them verified by the designated bank and the insurance company.

• Firstly, the nominee/beneficiary of the scheme must acquire the following documents ;
  • A duly filled claim form
  • Death certificate of the insured
  • A discharge receipt along with either a photocopy of a cancelled cheque of the nominee’s bank account
  • Bank account details of the bank associated with the PMJJBY scheme.
• Secondly, having received the documents from the nominee, the bank verifies the validity of the cover for the member. It fills in the required details in the concerned forms before forwarding them to the insurance company.
• Thirdly, the insurance company checks all the details and validity of the scheme for the member. After the successful verification of the documents, the claim is transferred to the bank account of the nominee.

Pradhan Mantri Jeevan Jyoti Beema Yojana: Benefits

• Death coverage to the tune of two lakhs is provided to the beneficiary after the demise of the policyholder.
• Under section 80c of the Indian Income Tax Act, a policyholder receives the tax benefits.
• The scheme offers annual renewability of the coverage after its expiry.

FAQs

Question. What is the Pradhan Mantri Jeevan Jyoti Bima Yojana (PMJJBY)?

Question. Who is eligible for the PMJJBY scheme?

Question. What is the premium amount for PMJJBY?

Question. What is the sum assured under PMJJBY?

Question. How can one enroll in the PMJJBY scheme?

MCQs

1. What is the coverage amount under the Pradhan Mantri Jeevan Jyoti Bima Yojana (PMJJBY)?

A) ₹1 lakh

B) ₹2 lakh

C) ₹5 lakh

D) ₹10 lakh

2. What is the age range for eligibility under the PMJJBY?

A) 18 to 60 years

B) 18 to 50 years

C) 21 to 60 years

D) 20 to 55 years

3. Which of the following is the premium amount for the Pradhan Mantri Jeevan Jyoti Bima Yojana?

A) ₹100 per year

B) ₹330 per year

C) ₹500 per year

D) ₹1000 per year

4. In case of death of the policyholder under PMJJBY, who receives the death benefit?

A) Government

B) Bank

C) Nominee of the policyholder

D) Insurer

5. Which of the following banks offer the PMJJBY scheme?

A) Only nationalized banks

B) Only private sector banks

C) All public and private sector banks

D) Only regional rural banks

GS Mains Questions and Model Answers

Q1: Discuss the significance of the Pradhan Mantri Jeevan Jyoti Bima Yojana (PMJJBY) in promoting financial inclusion in India.

Answer: The PMJJBY is a key government initiative aimed at providing affordable life insurance coverage to economically vulnerable sections of society. With a low annual premium of ₹330, it enables low-income individuals, particularly those in rural and semi-urban areas, to gain access to life insurance. This scheme promotes financial inclusion by ensuring that individuals who may not otherwise be able to afford such coverage are provided with a safety net. By linking the scheme with existing bank accounts, the government has leveraged the financial inclusion drive to extend insurance coverage, contributing to the overall improvement of social security in India.

Q2: Evaluate the role of Pradhan Mantri Jeevan Jyoti Bima Yojana (PMJJBY) in enhancing the social security framework of India.

Answer: The PMJJBY is an important component of the government's broader social security initiatives aimed at providing financial protection to citizens in the event of unforeseen circumstances like death. By offering life insurance with minimal premium payments, the scheme ensures that families of policyholders receive financial support in case of the policyholder’s death. The scheme is especially beneficial for lower-income groups who traditionally lack access to affordable insurance. Moreover, the scheme helps in reducing the burden on public welfare programs by offering a self-sustaining model of financial security. The expansion of such schemes plays a crucial role in strengthening India’s social security framework.

Q3: Critically assess the challenges in the implementation of Pradhan Mantri Jeevan Jyoti Bima Yojana in rural and remote areas.

Answer: Despite its potential to enhance financial inclusion, the PMJJBY faces several challenges in rural and remote areas. These include low awareness about the scheme, inadequate infrastructure for banking services, and the lack of digital literacy among rural populations. In some areas, individuals may not have a bank account, which is a requirement for enrolling in the scheme. Additionally, the process of enrolling and ensuring that premiums are regularly deducted from accounts can be cumbersome for those unfamiliar with banking systems. To address these challenges, the government needs to invest in awareness campaigns, improve banking infrastructure, and collaborate with local bodies to ensure greater participation in the scheme.

Previous Year Questions on PMJJBY

1. UPSC CSE 2019

Question: "The Pradhan Mantri Jeevan Jyoti Bima Yojana is a step towards ensuring financial security for the low-income group. Discuss its objectives, benefits, and challenges in rural India."

Answer: The PMJJBY is designed to provide affordable life insurance to people between 18 and 50 years of age. The primary objective is to ensure that individuals, especially from low-income backgrounds, have access to financial protection. The scheme's benefits include a death benefit of ₹2 lakh at a minimal cost of ₹330 annually. However, challenges such as limited awareness, inadequate banking infrastructure, and issues of enrollment in rural areas hinder the full potential of the scheme. To overcome these, the government needs to improve outreach programs, simplify processes, and ensure greater accessibility in remote areas.