Jeevan Jyoti Bima Yojana [ Detailed Analysis - Economics ]
On 9th of May 2015, at Kolkata the Prime Minister of India, Narendra Modi launched a scheme known as Jeevan Jyoti Bima Yojana. It is government backed scheme related to life insurance. It was originally and officially announced in 2015 Budget speech by the then finance minister of India, Arun Jaitley.
- The scheme covers death due to any reasons. The main administrator of the scheme would be Life Insurance Corporation along with few other insurance companies.
- Any India resident within the age group of 18 to 50 years is eligible to join the scheme
Features of Jeevan Jyoti Bima Yojana
- Yearly Rs 330 is to be paid as premium, which is less than 1 Re per day and comes to Rs 27.5 per month.
- The payment of the premium will be deducted from the bank account of an individual so it is mandatory to maintain the bank balance.
- Risk coverage is Rs 2 Lakh in case of death for any reason.
- Life Insurance Corporations will offer the scheme and all the others life insurers who are willing to join the scheme.
- It is important to renew that policy every year.
- Nominee name and details are to be provided while joining the scheme.
- In case of minor name of guardian must be specified
Eligibility to Join the Insurance Scheme
How to Apply for Jeevan Jyoti Bima Yojana
Duration of Enrollment for Jeevan Jyoti Bima Yojana
- From 1st of June 2015 to 31st of May 2016 is the cover period for the first initiative of Pradhan Mantri Jeevan Jyoti Bima Yojana. All the approvals should be submitted by the applicants to the concerned bank by 31st May 2016.
- However applicants after have to make full payment of these premium amount.
Advantageous Facts and Enrolment Modalities
- The premium within this scheme can be paid through an auto debit that might be linked to savings account of the applicant. Since 2015 is the actual beginning year for the scheme extra time of 3 to 6 months is offered to the applicants who genuinely need to join this scheme following the due date.
- However, those applicants have to pay full premium for a complete year so that they can get their hands on the coverage for that year. A fitness certificate would be required before getting linked up with the scheme.
- In accordance to rules, the insurance for deaths comes to not more than 2 lakhs.
Premium under the Jeevan Jyoti Bima Scheme
- The premium for this scheme is Rs 330 per year which is to be paid by an auto debit system from the savings account of the applicant once in a year. This money can be paid before or after but within the fiscal year.
- One time full payment of the premium can also be provided to the applicant but with a health certificate by a proficient medical practitioner.
The Termination of Assurance underPMJJBY
Following must be adhered to:
- No cash amount would be provided to the nominee.
- If the applicant attains the age of 55 then the scheme will be terminated.
- If for any reason the savings account of the applicant gets shut the declarations and advantages will be concluded.
- As the government has allowed one policy per person, if any applicants is found to have multiple savings accounts linked with policies then his/her policy might get terminated.
- Published on: September 22, 2016