The Life Insurance Council has set up a centralized database for life insurers to check on before processing claims under the Pradhan Mantri Jeevan Jyoti Bima Yojana (PMJJBY). This will ensure that claims of only genuine policyholders are settled. Since the policies are managed by banks, insurers need to verify that the person doesn’t hold multiple policies while processing claims. To initiate a claim, an IT-enabled registry has been set up by the Life Insurance Council through CIBIL. Upon receiving a claim, a bank needs to inform the respective life insurer, which can then access the database by paying a nominal fee of Rs 5.
The PMJJBY was launched by Prime Minister Narendra Modi on 9th May 2015 with an aim to improve the social security and life insurance coverage in the country. The PMJJBY offers Rs 2 lakh life cover to people in the age group of 18-50 years, covering death due to any cause.
The PMJJBY offers the following benefits:
- All Bank account holders whose age is between 18 to 50 years are eligible.
- Life Insurance amount for your family in your absence.
- Life insurance worth Rs. 2 lacs at just Rs. 330 per annum.
- Period of Insurance is annual : 1st June - 31st May
- The premium will be deducted from the account holder's saving bank account through 'auto debit' facility.
- The person would be eligible to join the scheme through one saving bank account only.
According to the reports published in the Financial Express, PMJJBY has received 1184 claims till date. Currently, 10 life insurers in the country have signed up for the PMJJBY. Most of the claims belong to Life Insurance Corporation of India, State Bank of India Life Insurance Company, Star Union Dai-Ichi Life Insurance, and IndiaFirst Life Insurance Company.