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Pradhan Mantri Jeevan Jyoti Bima Yojana under Budget 2015-16
Budget 2015-16 has brought several social security schemes including low-premium insurance schemes which aim to widen the penetration of insurance in India.?Pradhan Mantri Jeevan Jyoti Bima Yojana is one of such low-premium insurance scheme which provides life insurance cover of Rs.2 lakhs for one year and subscribers shall be required to renew it every year.
Similar to Pradhan Mantri Suraksha Bima Yojana, this scheme is also going to get administered by LIC and shall be linked with the Pradhan Mantri Jhan Dhan Yojana.
Pradhan Mantri Jeevan Jyoti Bima Yojana Features:
Pradhan Mantri Jeevan Jyoti Bima Yojana is available for the individuals falling in the age group of 18 years (completed) to 50 years (running) and should have savings bank account. If the account is opened before attaining the age of 50 years, the life cover would remain intact up to the age of 55 years, if premium is paid regularly.
In case the individual possess more than one savings account in the same bank or another bank, he shall only be allowed to apply in this scheme through one account. This means only one policy per person.
If it is found that individual has applied through more than one savings account than only one policy will remain effective and all the other policy and premiums paid for them shall be forfeited.
How to Subscribe to the Scheme?
Interested person shall first link their Aadhar card with the bank account. Once it is done, a simple consent cum declaration form is to be filled every year and to be submitted to the bank before 1st of June, in order to avail the benefit of this scheme.
There is no time restriction for joining this scheme. This means eligible individuals can join this scheme at any point by paying annual premium through auto-debit facility.
Further, individuals whose policy gets lapsed due to any reason can also restore the policy by just paying the annual premium subject to the eligibility conditions.[AdSense-A]
Nominee name is to be given in the form along with relationship. In case the nominee is minor, name of the guardian is also to be given.
Premium payable for this scheme is Rs.330 per year i.e. less than Rs.1 per day.
In case the premium is not paid up to 31st May of the year, than a self-declaration of good health shall be given along with the annual premium and cover would commence from the first day of the next month i.e. if premium is paid on 15th July, than cover would commence from 1st of August.
Download: Self-Declaration Good Health Proforma
Payment Mode of Premium
The annual premium will have to be paid in one installment and will be auto-debited from your bank account in the month of May ever year. There are no other methods of paying premium.
The risk cover is of Rs.2 lakhs in case of death for any reason i.e. natural or accidental.
Term of Coverage
Pradhan Mantri Jeevan Jyoti Bima Yojana provides life cover for one year stretching from 1st of June to 31st of May every year.
The risk cover comes with two options:
- The policy holder is required to renew the policy each year and the premium will be auto-debited from his bank account.
- Policy Holder can also opt for longer term say 2 years to 4 years and each year his bank account will be auto-debited for the premium payable.
Where to get this Scheme?
All the public sector general insurance companies such as LIC will offer this scheme. Other private insurers can also offer this scheme but has to tie-up with the banks such as?SBI, PNB, BOB etc.[AdSense-A]
Recently, Life Insurance Corporation (LIC) and IDBI Bank inked the?memorandum of understanding (MoU) for implementing ?Pradhan Mantri Jeevan Jyoti Bima Yojana? (PMJJBY).
Termination of Insurance Cover:
Risk cover under Pradhan Mantri Jeevan Jyoti Bima Yojana would be terminated in any of the following instances:
1. On completing/attaining the age of 55 years.
2. Closure of the savings bank account through which the policy was taken.
3. Insufficient bank balance to pay the annual premium
The premium paid will be tax-free under section 80C and also the proceeds amount will get tax-exemption u/s 10(10D).
But if the proceeds from insurance policy exceed Rs.1 lakh and no Form 15G or Form 15H is submitted to the insurer, there shall be deduction of TDS at the rate of 2% from the total proceeds.