Most of the workforce had to make a pivot to remote work or hybrid work models in order to cope with the pandemic. For some occupations — essential workers, those in the unorganized sectors, and daily wage workers — we needed a better long-term solution. If you haven’t heard of it, the Pradhan Mantri Jeevan Jyoti Bima Yojana (PMJJBY) is a term insurance scheme aimed at people employed in the unorganized sectors.
Details of Pradhan Mantri Jeevan Jyoti Bima Yojana
Pradhan Mantri Jeevan Jyoti Bima Yojana is a term insurance scheme administered primarily by the Life Insurance Corporation, for Indian residents between the ages of 18 to 50 years with a savings account. It provides a life insurance cover of Rs 2 lakh against the payment of Rs 330 as a premium. It is a renewable scheme, which means that the beneficiary is covered under the scheme for a year.
The cover period under the Pradhan Mantri Jeevan Jyoti Bima Yojana runs from the 1st June of each year to the 31st May of the subsequent year.
Eligibility Requirements
- Age: You should be an Indian resident between the ages of 18-50 years
- Savings bank account: You should have a savings bank account. That’s where your premium amount will be debited from and your claim will be settled if the need arises.
- Health status: At the time of joining the PMJJBY, you will be required to provide a certification of your health.
The amount of Rs 330 that you pay as a premium under PMJJBY is allocated into three parts: Rs 289 goes towards the annual insurance premium charged by LIC, Rs 30 for the reimbursement expenses for the agents involved, and Rs 11 towards administrative charges for the banks that are a part of the scheme.
Claim Settlement Process Under the Pradhan Mantri Jeevan Jyoti Bima Yojana
The claim settlement process involves the submission of a claim form, discharge receipt, death certificate of the deceased, photocopy of a cancelled cheque or bank details of the deceased, to the bank, who then forwards the claim to the insurance company. This can take up to 30 days, post which the insurance company should approve the claim, and disburse the insurance amount within 30 days.
Claims Pending Under thePradhan Mantri Jeevan Jyoti Bima Yojana (PMJJBY)
According to the data from Lok Sabha sessions, here are some stats on the beneficiaries covered in the schemes compared to India’s population.
| PMJJBY Enrolments | Claim Settlement Ratio | Percentage to Eligible Population |
| 530,04,197 | 95.13% | 5.05% |
According to the Jansuraksha portal, the scheme had over 10.27 crore enrollments in 2020-21. In this financial year, in fact, the highest number of claims were cleared. There have been issues with the claim settlement process, however, especially for families afflicted or bereaved by the pandemic. For example, in Tamil Nadu, there were 102 claims pending before banks in relation to the Pradhan Mantri Jeevan Jyoti Bima Yojana (PMJJBY) assistance for families who had lost loved ones to COVID-19.
So if you want to financially secure the future of your loved ones with optimum term insurance coverage and don’t like hefty documentation, consider making a seamless online investment into this term insurance scheme. You can also find term insurance schemes on Finserv MARKETS.
