Introduction
On May 9, 2015, the Government of India launched Pradhan Mantri Jeevan Jyoti Bima Yojana (PMJJBY) a government-backed life insurance scheme in India. It was originally proposed in the 2015 budget speech by the finance minister, as only 20% of India’s population was endorsed under any kind of insurance until then. Consequently, the PMJJBY was launched to increase penetration of life insurance among citizens.
Policy Detail
Pradhan Mantri Jeevan Jyoti Bima Yojana Eligibility
The PM Jeevan Jyoti Bima Yojana is a one-year life insurance scheme, renewable every year, offering coverage for death due to any reason and is available to people in the age group of 18-50 years (life cover up to 55 years). Anyone having a savings bank account and who gives their consent to join and enable auto-debit are eligible under the scheme.
Enrolment
PMJJBY is extended through LIC (Life Insurance Corporation) and other Indian private life insurance companies. An individual can approach his/her banker for the process of enrolment, as banks have tied up with insurance companies. In case an individual holds multiple bank accounts in one or different banks, the person will be eligible to join the scheme through only one bank account.
Enrolment Period
The cover period is from June 1 to May 31 every year. For the cover period, subscribers are required to enrol and give their auto-debit consent by May 31 of every year. Delayed enrolment for prospective cover is also possible with payment of pro-rata premium as explained below:
- For enrolment in June, July, and August - full annual premium of Rs. 436 (~US$ 5.2) is payable.
- For enrolment in September, October, and November - pro rata premium of Rs. 342 (~US$ 4.1) is payable.
- For enrolment in December, January, and February - pro rata premium of Rs. 228 (~US$ 2.7) is payable.
- For enrolment in March, April, and May - pro rata premium of Rs. 114 (~US$ 1.4) is payable.
Lien period of 30 days shall be applicable from the date of enrolment.
Pradhan Mantri Jeevan Jyoti Bima Yojana Benefits & Premium
A premium of Rs. 436 (~US$ 5.2) per annum per member is levied. The premium will be deducted from the account holder’s savings bank account through the ‘auto-debit’ facility in one instalment, as per the option given on or before May 31 of each annual coverage period under the scheme. Delayed enrolment for prospective cover after May 31 is possible with payment of appropriate pro-rata premium. The premium would be reviewed based on annual claims experience. Any changes in premium amount under the scheme would be intimated immediately when revised. A benefit of Rs. 2 lakh (~US$ 2,700) is payable on a member’s death (due to any natural/unnatural reasons) to the nominee/beneficiary of the policy. The scheme also provides tax deduction under section 80C through its monthly premium payment.
Claim Settlement
The death claim will be settled by the designated office of the insurance company concerned. The following processes are undertaken by various stakeholders:
Nominee
- The nominee needs to approach the bank wherein the deceased member had the 'savings bank account' through which he/she was covered under the PMJJBY and submit the death certificate of the account holder.
- The nominee then needs to collect a claim form and discharge receipt from the bank or any other designated source such as insurance company branches, hospitals and insurance agents including designated websites.
- Finally, the nominee needs to submit the duly completed claim form, discharge receipt and death certificate, along with a photocopy of the cancelled cheque of the nominee's bank account (if available) or account details of the bank where the deceased member had the 'savings bank account' through which he/she was covered under the PMJJBY.
Bank
- Bank needs to verify the claim form and nominee details from the records and submit the following documents to the designated office of the insurance company concerned:
- Claim form duly completed
- Proof of death of the insured member (or, in case of death due to an accident within 30 days of joining/ re-joining the scheme, proof of accidental death)
- Aadhaar number and PAN number of deceased member and nominee / appointee / claimant
- KYC document in respect of the nominee / appointee / claimant, as the case may be
- First two pages of passbook, or bank / post office account statement showing account details, or cancelled cheque of the account of the nominee / appointee / claimant, as the case may be
- Proof of death of nominee, in case the nominee has predeceased the insured
- Proof of being legal heir, in case the claimant is other than nominee/appointee
- Advance receipt for discharge of claim, duly filled in and signed
- The maximum time limit for the bank to forward a duly completed claim form to the insurance company is 30 days from submission of the claim.
Insurance Company
- Verify that the claim form is complete and if the claim is admissible, the designated office of the insurer shall check whether the member's coverage is in force and no death claim settlement has been imposed for the member through any other account. In case any claim has been settled, the nominee shall be intimated accordingly with a copy marked to the bank.
- In case the coverage was in force and no claim has been settled for the said member, payment shall be released to the nominee's bank account, and a communication shall be sent to the nominee with a copy marked to the bank.
- Maximum time limit for the insurance company to approve claim and disburse money is seven days from the receipt of claim from the bank.
PMJJBY: Initiatives and Progress
As of March 19, 2025, the scheme had enrolled a total of 23.36 crore individuals. It received 9,37,524 claims, of which 9,05,139 were successfully settled, amounting to Rs. 18,102 crore (US$ 2.04 billion).
|
June 2015 to May 2024 |
June 2024 to April 2025 |
|
|
Number of claims received |
8,30,099 |
1,21,428 |
|
Number of claims disbursed |
7,97,706 |
1,19,849 |
Source: PIB
In November 2020, India Post Payments Bank (IPPB) tied up with PNB MetLife India Insurance to launch the Pradhan Mantri Jeevan Jyoti Bima Yojana (PMJJBY) for its customers. Managing Director and Chief Executive Officer of India Post Payments Bank, Mr. J. Venkatramu, said at the launch of the tie-up, “PMJJBY takes forward the government’s mission of creating a universal social security net for the needy and disadvantaged sections. Products such as PMJJBY help inculcate a culture of buying affordable insurance among this segment of the population.”
In April 2023, Dr. Vivek Joshi, Secretary of Department of Financial Services (DFS), chaired a meeting with 10 central ministries/departments to boost the coverage of micro-insurance schemes like Pradhan Mantri Jeevan Jyoti Bima Yojana (PMJJBY) and Pradhan Mantri Suraksha Bima Yojana (PMSBY) at Gram Panchayat level during a 3-month long campaign from April to June 2023. The campaign aimed to cover various vulnerable groups nationwide, urging active participation from ministries to ensure maximum outreach to eligible beneficiaries.
The Road Ahead
As the Indian population rises and the country showcases a strong growth potential, lack of financial inclusion is likely to be a major challenge faced by the country. Currently, ~72% of the Indian population resides in rural parts of the country and are highly dependent on daily wages for sustenance. The PMJJBY assures this population for their wellbeing and happiness.
With the government’s continuous efforts to enhance the social security awareness and strengthen the financially weaker section of the society, the PMJJBY scheme is expected to gain higher momentum in the future and meet its goal of achieving the country’s total financial inclusion.
