Profile Image Dr. Suraj A. Dhirwani

Pradhan Mantri Jeevan Jyoti Bima Yojana

What is this new scheme ? 3 years ago

  • Knowledge Junction:Answered in 1715 mins

    Hi Suraj,

    Pradhan Mantri Jeevan Jyoti Bima Yojana is a life insurance scheme supported by the government and was announced in the current year budget speech by finance minister Arun Jaitely as a part of the effort of the government to make insurance available to all the sections of the society. The terms of the scheme are such that even the low income groups of the society will be benefitted by the same.

    The particulars of the scheme are as follows

    1. All individuals who are aged between 18 years (completed) to 50 years (running) and have a bank account are eligible to avail the scheme. 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.

    2. The premium for the scheme would be 330 Rs. per annum to give a death benefit of Rs. 2 lakh. However the premium needs to be compulsorily debited from the bank account of the individual in a single installment. There are no other means to pay the premium.

    3. The period of insurance shall be 1st June to 31st May every year and the person has to opt for the scheme every year.  He can also prefer to give a long-term option of continuing, in which case his account will be auto-debited every year by the bank.

    4. The scheme will be offered by Life Insurance Corporation of India and all other public as well as private life insurers who are willing to join the scheme and tie-up with banks for this purpose. However only one policy per individual can be availed.

    In a nutshell, it is an effort made by the government to widen insurance penetration in India, to create a social security system and with such a low premium; it is expected to benefit the economically weaker sections of the society.

    Hope this was helpful.

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