Pradhan Mantri Jeevan Jyoti Bima Yojana(PMJJBY): Ensuring your Future

The Pradhan Mantri Jeevan Jyoti Bima Yojana(PMJJBY)is one of the several ambitious social security programmes initiated by Narendra Modi. It is basically a term life insurance policy that can be renewed either on a yearly basis or for a longer period of time. It will provide life insurance coverage on the death of the policyholder.

Who is Eligible?

The Pradhan Mantri Jeevan Jyoti Bima Yojana will be made available to anyone between the age group of 18 to 50 years. The concerned person should also have a bank account. People, who avail this policy before they are 50 years old, will be allowed to enjoy the risk of life cover till the age of 55 years. However, they will need to pay the premium on a consistent basis in order to be provided that benefit.

What is the Premium?

The policyholders will need to pay INR 330 per year. The amount will be deducted each year from their bank account in a single installment. This will be done by the bank from where the policy is being opened.

What is the Risk Coverage?

The risk coverage being provided in the Pradhan Mantri Jeevan Jyoti Bima Yojana is INR 2 lakh. In case the policy has been availed for a longer term period than just a year, the amount will be deducted for each year of the agreed term period from their respective bank accounts.

Who will Offer the Programme?

Life Insurance Corporation of India (LIC) will be offering the plan. However, other life insurers, who are eager to take part in the programme, can join it through tie-ups with specific banks. The banks, whose clients join the programme, will be deemed as the master account holders in case of the PMJJS. The LIC or the other insurers will finalise the claims settlement and administration procedures, which are expected to be simple and friendly towards the subscribers. This will be done in consultation with the banks.

How can One Enroll?

The plan is being launched initially from 1 June 2015 till 31 May 2016. The subscribers will need to enroll as well as provide the option for auto debiting their premium on or before 31 May 2015. This date will be extended to 31 August 2015. If someone wishes to enroll after this date they will need to submit a self certificate, where they state that they are in good health and will also pay the entire annual premium. In case someone wants to continue beyond the first year then they will have to agree to auto debiting by 31 May that year. For anyone who renews the policy after this, he or she will need to furnish a self certificate of good health as well as the entire yearly premium. In case someone did not join in the first year, he or she can provide a good health self certificate and the entire yearly premium. The procedure is the same for people who had joined the policy once and then left it, only to come back later and rejoin the same.

When will the Policy be terminated?

The policy will come to an end once the holder reaches the age of 55 years. However, for this to be effective the policyholder will need to keep renewing the policy till that time. If the account holder has to close his or her account in the bank, where the policy is being maintained, because of paucity of sufficient funds to even maintain the minimum balance needed to ensure the policy is active, then the insurance policy will be closed as well. If the concerned person has taken more than one such account and the insurer gets the money in an unintended manner, then the said premium will be forfeited.

What Role will the Bank play?

Apart from being the master account holders and deducting the premium each year, the banks will need to play some other roles as well. Their primary duty will be to transfer the deducted premium to the insurers. They will also have to take care of the following:

• Enrollment forms
• Authorisation of auto-debit
• Providing declaration-cum-consent form in the exact shape that they are supposed to be done. They will get it and keep it as well since at time of claims, or any other occasion as required by the insurer, they will be supposed to provide it to the insurer

How will the Premium be divided?

Out of the yearly premium of INR 330, INR 289 will go to the insurer and INR 30 will be reimbursed for the expenses incurred by the BCs, corporate or micro agents. The bank will get INR 11 as compensation for administrative costs incurred by them.

For further information on PMJJBY, please .One can also call the National toll

free numbers: 1800 110 001 / 1800 180 1111 and State wise Toll free number are listed in this document –

Application Form

To download the application form  .The forms are available in different languages –

English, Hindi, Gujarati, Bangla, Kannada, Odia, Marathi, Telugu and Tamil.

Pradhan Mantri Suraksha Bima Yojana (PMSBY) – An accidental insurance scheme

Pradhan Mantri Suraksha Bima Yojana (PMSBY) -

A large part of the Indian population lives in rural areas and most of them are not covered under any kind of social security scheme. A large section of this population has not even gained the benefits of the banking system and most are still unaware of various governmental schemes that are launched from time to time.

To correct this serious anomaly in the lives of ordinary and poor people, the Pradhan Mantri of India has launched the PMSBY scheme in Kolkata on 9 May 2015, along with two other insurance- and pension-related schemes. Such is the seriousness of the government to make these schemes a success that almost the entire senior Cabinet has fanned out to various state capitals and major towns to simultaneously launch the scheme and ensure its successful implementation.

So what makes this scheme stand out from other social security schemes launched by the previous governments?

There are two aspects of PMSBY that make it different in offering and approach. Firstly, it is the sheer size and depth of inclusion to bring and get covered the maximum number of people under this scheme, which kind of makes it very ambitious and challenging.

Today, if an earning member of a family becomes permanently disabled or dies an accidental death, his or her family faces a life in penury and hardship, with no protection or support from any institution or group. By joining the PMSBY scheme and by paying a nominal premium of Rs. 12/- per person per year, he or she will get an insurance cover for a sum of Rs. 2,00,000/- (two lakh) in case of accidental death or permanent full disability or a sum of Rs. 1,00,000/- (one lakh) in case of partial but permanent disability. The scheme will be valid for a year and it can be renewed every year.

A lot of government social security schemes have not had a very positive response from people due to lack of financial system infrastructure at a nearby location and moreover, the paperwork involved in opening accounts or making claims was too much for them to handle. Even the leakages in the system resulted in large sections remaining excluded from the benefits of these schemes. This has now been largely addressed by the present government that has made extensive use of technology to augment its social scheme delivery and monitor mechanisms. All the payments will be directly credited to the beneficiary’s account with no scope for leakages.

Who is eligible to be covered under PMSBY?

Any person between the age of 18 and 70 with a savings bank account and Aadhaar Card can join the scheme.

A person will need to fill out a simple form, mentioning the name of the nominee and linking the Aadhaar Card to the bank account. The person will need to submit the form each year before 1st June to continue the scheme.

With this, the account can be easily activated and the entire premium due will be auto-debited from his or her account. In other words, all a person has to do is to open a bank account and then ensure the availability of at least Rs. 12/- before 1st June of each year to ensure automatic renewal of the scheme. A person has the option to go in for a long-term inclusion under the scheme by instructing the bank to auto-renew the scheme every year.

Who will implement the PMSBY?

All government-sponsored general insurance companies will offer the scheme, while other insurance companies will have the option to join the program delivery by signing-up with banks.

Will I get any tax benefits on joining the scheme?

The entire premium paid by the subscribers will be tax free under Section 80C. Furthermore, all the proceeds received up to Rs. 1,00,000/- (one lakh) will be tax exempt under Section 10(10D). For all the proceed amounts exceeding Rs. 1,00,000/-, a TDS at the rate of 2% of the total proceeds will apply if Form 15H or Form 15G is not submitted to the insuring agency.

So what made the present government kick start three major social security programs at one go?

The present government led by PM Narendra Modi is going to complete one year in office and has realised that their performance will come under close scrutiny for gap analysis between poll promises and actual deliverables after staying in power for one year.

The government has come under some criticism for not speeding up the government spending, especially in the much needed infrastructure and manufacturing sectors, both of which are tied to various pending bills in the Parliament, including the implementation of Goods and Service Tax (GST) and the vital Land Acquisition Bill. The government is, therefore, keen on not only announcing these social security schemes but also giving it the adequate push that it needs to ensure deeper penetration amongst various sections of people who really need them.

While it is true that the Jan-Dhan Yojana has achieved remarkable milestones in a short period of time in terms of the number of accounts opened, it is also equally true that a lot of these accounts remain with zero or minimal balance, thereby negating the very purpose for which they were opened in the first place.

The PMSBY scheme will take a year for it to be implemented across a wide section of people and next year around this time will be a good time to do a reality check on what was targeted and what had been achieved in terms of actual impact.

Meanwhile, the general mood remains buoyant and hopeful that PM Modi will come out considerably true on his promises of taking India on a path of accelerated development and that the PMSBY scheme will play its part in the overall success of the present government.

For further information on Pradhan Mantri Suraksha Bima Yojana (PMSBY) , please log onto: or One can also call the National toll free numbers: 1800 110 001 / 1800 180 1111. StateWise Toll free number are listed in this document –

PMSBY Application Form

The application form can be downloaded from The forms are available in different languages – English, Hindi, Gujarati, Bangla, Kannada, Odia, Marathi, Telugu and Tamil.


For information on Frequently Asked Questions on Pradhan Mantri Suraksha Bima Yojana (PMSBY) , please log onto:

Post its launch, 8,46,18,155 people have already registered for the scheme as on 2 September 2015.

 for Pradhan Mantri Suraksha Bima Yojana (PMSBY) in Hindi

All scheduled and non-scheduled banks – public, private, foreign, cooperative, regional rural and local area banks – will observe public holiday on second and fourth Saturdays from September 01, 2015; and will observe full working days on Saturdays other than second and fourth Saturdays (referred to as working Saturdays in the Press Release). Consequent to this, the Reserve Bank of India has announced the following changes in its functioning with effect from September 1, 2015.