All about Pradhan Mantri Suraksha Bima Yojana and Pradhan Mantri Jeevan Jyoti Bima Yojana

Prime Minister of India launched two schemes on 9th May 2015. These two schemes may not be helpful to rich or ultra rich. However, these schemes will definitely helpful to others. One is a Life Insurance product called as Pradhan Mantri Jeevan Jyoti Bima Yojana (PMJJBY). Another is, Accidental Insurance product called as Pradhan Mantri Suraksha Bima Yojana (PMSBY). Let us the features of both these schemes.

Pradhan Mantri Jeevan Jyoti Bima Yojana (PMJJBY)

This is nothing but a pure Life Insurance product. However, please do remember that it is pure Life Insurance product. In case of sudden demise of the policyholder, the nominee will receive the sum assured available in this plan. If nothing happens to the policyholder, then no benefit or returns. Such plans are called pure life insurance products or Term Insurance products.

Never compare this product with products offered by LIC, where if the policyholder survives then you get some money at the end of a period. That is the reason such plans will be offered at lower premiums. It is necessary for all individuals who are earning and who have financial dependents.

Features of this plan are as below

Eligibility- 

All savings account holders in the age group of 18 to 50 Yrs in participating banks will be eligible to join. Please remember, to avail this scheme you must have the savings account from the PARTICIPATING BANK. In case you have multiple savings account in one or different bank then the person is eligible to buy this product only through one savings account. Hence, you may say one-man, one policy.

You can continue this product up to the age of 55 years subject to the payment of renewal payment. However, an entry will not be possible beyond 50 yrs of age.

Life Risk Coverage–

Rs.2 lakh will be payable on the member’s death DUE TO ANY REASON.

Premium–

The premium will be Rs.330 per year. This premium will be auto debited from your savings account in one installment on or before 31st May of each annual coverage. In case you missed to pay the premium within 31st May in any year, then to renew it, you have to pay the premium and provide the self-certificate of good health. The premium would be reviewed based on the claims received and may be increased for you. However, the Government claims that barring unforeseen adverse claims, efforts would be made to ensure that there is no raise in premium if it is within 3 years.

Hence, do remember that buying this product and managing money on a particular ECS date is very much necessary. Otherwise, you may not get this life risk due to ill health or any other issues.

Enrollment Period–

Initially, it will be from 1st June 2015 to 31st May 2016. It will be a yearly renewable product. For this year, you have to provide auto debit consent before 31st May 2015.

Who manages this scheme?

Life Insurance Corporation of India (LIC) and few other Life Insurers will manage this scheme in coordination with participating banks.

How your premium will be broken up?

Life Insurance premium-Rs.289 per annum per member.

Reimbursement of expenses intermediaries like BC/Micro/Corporate/Agent-Rs.30 per annum per member.

Admin expenses to Bank for collecting the premium-Rs.11 per annum per member.

A few cases where your membership may be terminated–

• Once you attain the age of 55 Yrs.
• In case, you will not maintain the sufficient fund in your bank for auto debit of premium.
• In case, an individual covered under this scheme through more than one savings account. In this case, insurance coverage will be restricted to Rs.2 lakh only.
• Closure of your Bank Account.

Do remember that, in case you have life insurance from term insurance, endowment plans, ULIPs or under any group life insurance schemes, you still be eligible to be a member of this scheme.

You can download the Consent-cum-Declaration Form from HERE. Also, download the claim form from HERE.

Pradhan Mantri Suraksha Bima Yojana (PMSBY)

This is the typical accidental insurance cover. It will be renewable on a yearly base. It is exactly like Health Insurance, where you have to renew it on yearly and you get the benefit only in case of an accident. This scheme offers accidental death and disability cover for death or disability due to an accident.

Features of this plan are as below

Eligibility–

All savings bank holders in the age of 18 to 70 Yrs in participating banks will be entitled to join this scheme. In case you have multiple savings account in one or different bank then the person is eligible to buy this product only through one savings account. Hence, you may say one-man, one policy.

Sum Insured–

Death due to accident-Rs.2 lakh.

Total and irrecoverable loss of both eyes or loss of use of both hands or feet or loss of sight of one eye and loss of use of hand or foot-Rs.2 lakh.

Total and irrecoverable loss of sight of one eye or loss of use of one hand or foot-Rs.1 lakh.

Premium-

Rs.12 per annum per member. This premium will be deducted from the member’s savings bank account on yearly through an auto debit facility on or before 1st June every year. In case, you pay the premium after 1st June, then the coverage will commence from the first day of the month following the auto debit. For example, you paid the premium on 25th July then the coverage will commence from 1st August.

Enrollment Period–

Initially, it will be from 1st June 2015 to 31st May 2016. It will be a yearly renewable product. For this year, you have to provide auto debit consent before 31st May 2015.

Who manages this scheme?

This scheme will be managed by Public Sector General Insurance Companies and few other General Insurance Companies.

How your premium will be broken up?

Insurance Premium-Rs.10 per annum per member.

Reimbursement of expenses intermediaries like BC/Micro/Corporate/Agent-Rs.1 per annum per member.

Admin expenses to Bank for collecting the premium-Rs.1 per annum per member.

A few cases where your membership may be terminated–

• Once you attain the age of 70 Yrs.
• Closure of Bank Account.
• In case an individual covered under this scheme through more than one savings account. In this case, insurance cover will be restricted to one account and your other accounts paid as a premium will be forfeited.
• In case of insufficient of funds in a bank account.

You can download the Consent-cum-Declaration Form from HERE. Also, download the claim form from HERE.

My view on both the plans–

Finally, the days come where the Government or Insurance companies felt the importance of pure life and accidental insurance product. For many of us Life Insurance means a product, which combines Insurance+Investment. However, never thought to have pure life insurance coverage. Also, for many of us insurance means Life and Health Insurance. However, in insurance there are many varieties like Life, Health, Accidental, Critical, or Travel Insurance.

I know it may not be useful for those who may be reading this post (hoping your earnings are at a higher level and feel these schemes coverages of Rs.2 lakh a meager). However, there are many who are totally deprived of insurance due to not knowing the importance of insurance. I sincerely request all of those to spread this unique awareness and make them to be insured.

Even though I personally have enough Life and Accidental Insurance coverage, I still enrolling for this scheme. Hope you all too. Please ask your Banks to enroll within due date.

The official website of these schemes is  www.jansuraksha.gov.in. National Toll-Free – 1800-180-1111 / 1800-110-001  and  StateWise Toll-free numbers are listed in this document Statewise Toll-Free.