Pradhan Mantri Jeevan Jyoti Bima Yojana Plan
Pradhan Mantri Jeevan Jyoti Bima Yojana Plan (PMJJBY)
This group life insurance product is sponsored by the government. It is a plan that offers a person pure term insurance coverage, aiding in the financial stability of your family in the unfortunate event of a family member's passing.
In the case of death of the member, provided the policy is in place, a fixed Sum Assured of INR 2 lakhs shall be payable to the nominee.
Government co-funds the premium amount if the customer meets certain requirements.
Auto-debit capability from a bank savings account offers a hassle-free transaction.
Premium amount of INR 436 per annum per member.
Participants in the scheme must be RBL Bank Savings Bank (SB) Account holders between the ages of 18 (completed) and 50 (age closer to birthday), and they must have given their approval to join the scheme or allow auto-debit in accordance with the scheme's modality.
The scheme is a one-year cover term life insurance scheme, renewable from year to year, offering life insurance cover for death due to any cause
INR 2 lakh is payable on a subscriber’s death due to any cause.
The premium payable is INR 436 per annum per subscriber. For those getting enrolled under PMJJBY for the first time during the middle of the policy period, payment of pro-rata premium is allowed as under;
- For enrolment in June, July and August – Full annual premium of INR 436 is payable.
- For enrolment in September, October, and November – pro rata premium of INR 342 is payable
- For enrolment in December, January and February – pro rata premium of INR 228 is payable.
- For enrolment in March, April and May – pro rata premium of INR 114 is payable.
However, full year’s premium @ INR 436 is payable at the time of renewal under the scheme.
For subscribers enrolling for the first-time, risk starts from the date of auto-debit of premium. However, insurance cover shall not be available for death (other than due to accident) occurring during the first 30 days from the date of enrolment into the scheme (lien period) and in case of death (other than due to accident) during lien period, no claim would be admissible.
The premium will be deducted from the account holder’s bank / Post office account through ‘auto debit’ facility in one instalment, as per the consent given by the subscriber at the time of enrolment.
The scheme is offered/administered through LIC and other life insurance companies willing to offer the product with necessary approvals on similar terms, in collaboration with participating Banks / Post office. Participating banks / Post office are free to engage any such life insurance company for implementing the scheme for their account holders / subscribers.
All individual (single or joint) account holders of participating banks / Post office, in the age group of 18 to 50 years are entitled to join. In case of multiple accounts held by an individual in Copyright RBL Bank Ltd. one or different banks / Post offices, the person is eligible to join the scheme through one bank / Post office account only.
The cover shall be for one-year period stretching from 1st June to 31st May. At the time of enrolment, subscriber has to submit his option on the prescribed form, to join / pay by autodebit from the designated individual bank / Post office account, until further instructions, an amount of INR 436 (Rupees Four Hundred Thirty-Six only) per annum, or any amount as decided from time to time, which may be intimated immediately if and when revised, towards renewal of coverage under the scheme.
Delayed enrolment / renewal subsequent to this date will be possible on payment of appropriate premium as described in Q.2 above, subject to changes in terms regarding insurance coverage.
Yes, new eligible entrants can also join in future years on payment of premium through autodebit. However, for such subscribers, insurance benefit shall not be available for death (due to any cause other than accident) occurring during the first 30 days from the date of enrolment into the scheme.
Individuals who exit the scheme at any point may re-join the scheme in future years by paying the appropriate premium as described in Q.2 above. However, for such subscribers, insurance benefit shall not be available for death (due to any cause other than accident) occurring during the first 30 days from the date of enrolment into the scheme
Participating Banks/ Post office are the Master policy holders for the scheme. A simple and subscriber friendly administration & claim settlement process has been finalized by LIC / other insurance companies in consultation with the participating banks / Post office.
The assurance on the life of the member shall terminate / be restricted accordingly on any of the following events: a) On attaining age 55 years (age near birth day), subject to annual renewal up to that date (entry, however, will not be possible beyond the age of 50 years). b) Closure of account with the Bank or insufficiency of balance to keep the insurance in force. c) In case a member is covered through more than one account and premium is received by LIC / insurance company inadvertently, insurance cover will be restricted to INR 2 Lakh and the premium paid for duplicate insurance(s) shall be liable to be forfeited.
- The scheme will be administered by LIC or any other life insurance company which is willing to offer the product in partnership with banks / Post office.
- It will be the responsibility of the participating bank / Post office to recover the appropriate premium in one instalment, as per the option, from the account holders on or before the due date through ‘auto-debit’ process and transfer the amount due to the insurance company.
- Enrolment form / Auto-debit authorization / Consent cum Declaration form in the prescribed proforma, as required, shall be obtained and retained by the participating bank / Post office. In case of claim, LIC / insurance company may seek submission of the same. LIC / Insurance Company also reserve the right to call for these documents at any point of time.
Appropriation of Premium
Appropriation of Premium:
|Appropriation of Premium where:||Full Annual Premium of INR 436 collected||INR 342 Collected in the 2nd quarter of risk Period||INR 228 Collected in the 3rd quarter of risk Period||INR 114 Collected in the 4nd quarter of risk Period|
|(1)||Insurance Premium to LIC/Insurance Company||INR 395||INR 309||INR 206||INR 103|
|(2)||Commission payable to Business Correspondents, agents, etc (For new enrolments only)||INR 30||INR 22.50||INR 15||INR 7.50|
|(3)||Administrative Expenses payable to participation banks||INR 11||INR 10.50||INR 7||INR 3.50|
Note: The amount of commission payable to Business Correspondents, agents, etc. as specified in item (2) saved in case of voluntary enrolment by an accountholder through electronic means shall be passed on as a benefit to the subscriber by correspondingly reducing the amount of the Insurance Premium payable specified above.
In case of a joint account, all holders of the said account can join the scheme provided they satisfy its eligibility criteria and pay the appropriate premium as described in reply to Q. 2 above.
Any NRI having an eligible bank account with a bank branch located in India is eligible for purchase of PMJJBY cover subject to fulfilment of the terms and conditions relating to the scheme. However, in case a claim arises, the claim benefit will be paid to the beneficiary/ nominee only in Indian currency.
All bank account holders other than institutional account holders are eligible for subscribing to PMJJBY scheme.
All these events are covered as PMJJBY covers death due to any reason
There are no foreign insurance Companies directly operating in India. As permitted by the Insurance Act and IRDAI regulations there are some foreign Companies in joint ventures with Indian companies, where the stake of foreign insurers is restricted to 74% only.
The cover under PMJJBY is for death only and hence benefit will accrue only to nominee. PMJJBY is a pure term insurance policy, which covers only mortality with no investment component. The pricing is also accordingly low when compared to other life insurance policies where maturity benefits, surrender value etc. are available. It has been designed to provide life insurance cover to the weaker sections of the society. With this aim, the premium is kept low, eliminating the investment component.
Only Indian Insurance Companies as defined in the Insurance Act can operate in India. The policy holders’ funds of all such insurance companies operating in India including those with foreign partners within the 74% cap is to be invested in India as per regulations and cannot be invested abroad. The premium charged for PMJJBY has been worked out based on actuarial calculations Copyright RBL Bank Ltd. considering all risk factors, current mortality rates and adverse selection. Thus, there is no scope for any huge profits accruing from the scheme.
There are 24 Life insurance companies operating in India, who are licensed by IRDAI to carry on life insurance business in India. To promote competition and better pricing and service to customers, all these companies are permitted to participate. Moreover, they are all Indian insurance companies. Their foreign partners, if any, have only a stake in these companies within the stipulated 74% cap. However, LIC is still the primary insurer involved in operation of the scheme.
There are no foreign insurance Companies directly operating in India. As permitted by the regulations there are Companies operating as joint ventures with Indian companies, where the stake of foreign insurers is restricted to 74% only. By definition, these are Indian insurance companies. All these companies are subject to Indian laws and there is no bar against proceeding legally against them.
Insurance is like any other product. While rates can go up in future, with 24 life insurance Companies operating in India, due to competition among them, prices are likely to remain stable. It is expected that with the design of the PMJJBY cover and it’s pricing, the scheme will be viable, and there is little chance of discontinuing. In any event, even if a particular company discontinues, banks have several other options to tie up with.
Terms and Conditions:
Any of the following circumstances will cause the member's life assurance to expire, and no benefit will be payable as a result:
- Expiration of the policy term or the member coverage term and subsequent non-renewal.
- Date of the member's passing.
- Date after which the annual renewal of this Cover will continue until the due premiums are paid in full or the Member reaches the Maturity Age.
- Account closure with the Bank or insufficient funds to maintain the insurance's coverage.
- If an insurance company accidentally receives a premium for a member who is covered by multiple accounts, the person's insurance coverage will be limited to just one account, and the premium may be lost.
- If the insurance coverage is terminated for any administrative or technical reasons, such as an unpaid balance on the due date, it may be reinstated upon receipt of the entire annual premium, subject to any conditions that may be established.
For any complaints or concerns regarding Pradhan Mantri Jeevan Jyoti Bima Yojana Plan (PMJJBY), please click here