Know the Process to Apply for PMJJBY Scheme

In the Pradhan Mantri Jeevan Jyoti Bima Yojana scheme, there is no component of investment involved as it covers only mortality. The cover offered under the PMJJBY scheme is for demise therefore the benefit is accrued only to the specified nominee.

Who is Eligible for the PMJJBY Scheme?

Here is a brief rundown of the eligibility criteria for the PMJJBY scheme:

• The individual should have a savings bank account and needs to be between 18 years and 50 years of age.

• An individual can join the PMJJBY scheme via one account regardless of whether the individual holds multiple accounts in the bank.

• When it comes to the joint account holders, then all the holders are entitled to join the scheme.

• It is a mandate to link the Aadhar card to the savings bank account.

What are the Benefits of the PMJJBY Scheme?

The following are the benefits of the PMJJBY scheme:

• The Pradhan Mantri Jeevan Jyoti Bima Yojana scheme offers a life cover of Rs 2 lakh to the nominee when the policyholder passes away.

• The PMJJBY offers benefit only in case of an untimely demise. Besides, no other benefits are accessible upon maturity or surrender.

• The premium payable is entitled to tax benefits under Section 80C of the IT Act.

Note: Tax benefits are subject to change as per the prevailing laws.

What is the Enrolment Period?

The cover period under the PMJJBY scheme is June 01 of every year until May 31 of the subsequent year. For the cover period of 2018, June 01 to 2019, May 31 the subscribers should enrol and give the consent for auto-debit latest by 2019, May 31. Anyone who joins subsequently will be able to do the payment of the complete yearly premium for the prospective cover.

What Will be the Premium Amount Under the PMJJBY Scheme?

The premium amount is Rs 300 for each person each year. The following is the breakup for the same:

• The Pradhan Mantri Jeevan Jyoti Bima Yojana scheme premium to the insurance provider- Rs 289 each year for each person.

• Reimbursement expenses to an agent/bank- Rs 30 each year for each person.

• Administrative costs reimbursement to the bank participating: Rs 11 each year for each person.

What is the Coverage Under the PMJJBY Scheme?

The life cover under the PMJJBY scheme is Rs 2 lakh. This amount will be given to the nominee of the policyholder in case a policyholder passes away.  As mentioned above, the PMJJBY scheme is applicable for a year. Initially, the enrolment period was 2015, August 31 to 2015, November 30. Presently, the period is from June 31 to May 31 of the year subsequently. The same is renewable annually.

How to Enrol on the PMJJBY Scheme?

Anyone who wishes to join the PMJJBY scheme can do so via the bank in, which they have the savings account. The PMJJBY scheme is easily managed via LIC of India and various other life insurance companies.

The individual looking forward to enrolling on the PMJJBY scheme can do so by simply paying the complete yearly premium amount at any time during the year. In case an individual has exited from the PMJJBY scheme can also join back by paying the yearly premium. The renewal date; however, for all the subscribers will be June 01. The enrolment process of the PMJJBY scheme is easy and simple.

To enrol on this PMJJBY scheme, one can also download the form and submit it to the bank. Some banks have started the SMS based process of enrolment as well. This could be done via net banking. To join or pay by the auto-debit from the individual bank account in the prescribed forms it will be required to give by May 31 of each year.

What is the Waiting Period for the Claims?

The risk cover under the PMJJBY scheme is applicable after the initial 45 days of enrolment. The insurance companies need not settle claims during the initial 45 days from the enrolment date.

The demises because of an accident will be exempted from the lien clause and even will be paid.

How to Raise the Claim?

When the policyholder passes away, the following is the process to settle the claims:

• The nominee needs to contact the bank of the policyholder that is linked to the PMJJBY scheme.

• The nominee should also have the certificate of death of the policyholder.

• The nominee should also collect the receipt of discharge and claim form. It can be collected from the bank or can be downloaded from the respective website.

• The nominee should submit the claim form, receipt of discharge, certificate of death and a xerox of the cancelled cheque of the bank account of the nominee if accessible. In case the cancelled cheque is not provided, the bank details of the savings account, which is linked to the PMJJBY scheme is required.

How the Claim is Processed?

Firstly, let us understand the processing of the claims by the bank:

• Upon the receipt of the claim, officially the bank will verify whether the policy is still in force. The bank will cross-check whether the premium amount for the cover on the yearly renewal date before the demise of the member was deducted and remitted respectively to the P & GS unit of LIC.

• In case the policy is still in force, the bank can check the nominee and claim form details. The details can be filled out on the claim form relevant columns.

• The bank needs to submit some important document like the claim form duly filled, certificate of death, receipt of discharge, copy of the cancelled cheque of the beneficiary/ nominee to the P & GS office of LIC designated.

• The time limit for the same is 30 days right from receiving the claim form from the nominee.

Next, let us also understand the processing of claims by the P & GS Unit designated:

• Verify both the form of claim and attached documents. This would ensure completeness and in case it is not, then immediately contact the concerned bank.

• The P & GS unit designated will verify whether the member coverage is active and no demise claim settlement has been affected for the members via any other account. In case a claim has been settled in the past, the nominee needs to be informed and a copy should be marked to the respective bank.

• In case of this claim settlement only, the amount will then be released to the nominee's bank account. An acknowledgement will be then shared with the nominee and a copy for the same will be marked to the bank.

• The insurance company has complete 30 days to settle the claim right from the receipt of the claim from the respective bank.

Wrapping it Up

By now, you are completely aware of the PMJJBY scheme and all the important information. Go with the PMJJBY scheme with the swift and easy enrolment process.

Go, protect the financial future!