Overview With a perspective of bringing all strata of society in the ambit of insurance, the Modi government has introduced three insurance schemes - Pradhan Mantri Suraksha Bima Yojna ( PMSBY - for accident insurance), Pradhan Mantri Jeevan Jyoti Bima Yojna (PMJJBY - for life insurance) and Atal Pension Yojna ( APY - for pension). Out of these, the PMJJBY is the government life insurance scheme. The scheme has been launched keeping the underprivileged in mind.
What is PMJJBY?
It is essentially a life insurance plan. Maximum sum assured under this scheme is Rs. 2 Lakhs. It is available for all Indian citizens having a bank account. It offers both life and accidental insurance in scheme. The scheme is operated by Life Insurance Corporation of India. Private banks and financial institutions will need to tie up with nationalised banks if they plan to provide the scheme to its customers.
What are the features of the scheme?
Here are a few FAQs and their answers about the scheme -
How to subscribe to the scheme?
You need to have a Aadhar linked bank account for availing benefits under this scheme. The scheme is offered by LIC of India. You can submit an application form at your local LIC of India branch. You will need to re-subscribe to the scheme in the month of June every year. If you are convinced of the benefits, you can exercise the long term offer, in which case your account will be auto-debited for the premium amount every year.
A few more details about the scheme
The scheme will be launched for the initial period of one year from June 1, 2015 to May 31, 2016. You will need to enrol before May 31, 2015. Late enrolment is possible upto August 31, 2015 which may further be extended upto November 30, 2015 if needed. Those who enrol after May 31, 2015 will need to give a self certificate of good health in the prescribed format.
The participating banks will be the Master Policy Holders. LIC or other insurance company will formulate a claim settlement process in consultation with the participating banks.
Where to get more details?
A designated toll free number has been launched to assist the prospective subscribers in any kind of information needed. You can dial 1800 180 1111 or 1800 11 0001 for complete information on the scheme. You may also visit http://www.jansuraksha.gov.in for gaining more knowledge about all the three insurance schemes. There is also a state-wise toll free number list on the website.
My take on the schemeThough the amount of assured at Rs. 2 Lakhs may appear not too huge, given the fact that it offers the benefits at a premium that is too cheap is really an incentive, especially for the poor and underprivileged who had - till now - been kept out of the frame of life insurance. I would encourage the readers to educate your servant, maid or any other underprivileged person in your vicinity to take benefits under this scheme.
Read Life Insurance Buying Guide: Ten point check list to buy life insurance
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More articles: Atal Pension Yojna
This is a best policy for all Indians.
Well, I need to agree because it brings all the strata of society into the ambit of insurance. But, it all depends on how the scheme will be implemented. A hasty implementation as in the case of Jan Dhan Yojna may be a cause for lack education and proper information about the facilities provided and how to get them. Everything depends on how claims - if any - are settled.