Pradhan Mantri Jeevan Jyoti Bima Yojana (PMJJBY): Complete Guide to Features, Benefits, Eligibility, and Impact

Introduction to PMJJBY

The Pradhan Mantri Jeevan Jyoti Bima Yojana (PMJJBY) is a government-backed life insurance scheme launched in India to provide affordable life insurance coverage to the masses, particularly targeting the underprivileged and economically weaker sections. This scheme is a cornerstone of India’s financial inclusion initiatives, offering a safety net for families in case of the policyholder’s untimely death. In this detailed guide, we explore the scheme’s launch details, features, eligibility, vision, impact, FAQs, and provide 10 MCQs with solutions to aid exam preparation.

Launch Details of PMJJBY

Launched On: May 9, 2015
Launched By: Prime Minister Narendra Modi
Announced In: Kolkata, West Bengal
Administered By: Life Insurance Corporation of India (LIC) and other private life insurance companies in collaboration with participating banks.

PMJJBY was introduced alongside other social security schemes like Pradhan Mantri Suraksha Bima Yojana (PMSBY) and Atal Pension Yojana (APY) as part of the Government of India’s vision to enhance financial security for all citizens. The scheme is managed through banks and insurance companies, with LIC being the primary administrator, though other insurers can participate with necessary approvals.

Key Features of PMJJBY

PMJJBY is designed to be simple, affordable, and accessible. Below are the key features of the scheme:

1. Life Insurance Coverage: Provides a life cover of ₹2 lakh in case of the policyholder’s death due to any reason.
2. One-Year Renewable Policy: The scheme offers coverage for one year (June 1 to May 31) and is renewable annually.
3. Affordable Premium: The annual premium is ₹436 per member, auto-debited from the policyholder’s savings bank account. Pro-rata premiums apply for mid-term enrollments:
   • June to August: ₹436 (full premium)
   • September to November: ₹342
   • December to February: ₹228
   • March to May: ₹114
4. No Investment Component: PMJJBY is a pure-term insurance policy, meaning it covers only mortality without any savings or investment benefits.
5. Lien Period: A 30-day waiting period (lien) applies for non-accidental deaths from the date of enrollment. However, deaths due to accidents are exempt from this clause.
6. Auto-Debit Facility: The premium is automatically debited from the linked savings bank account before May 31 each year.
7. Nominee Benefit: The ₹2 lakh sum assured is paid to the nominee in case of the policyholder’s death.
8. No Maturity Benefit: The scheme does not offer maturity benefits or bonuses, keeping it cost-effective.

Eligibility Criteria for PMJJBY

To enroll in PMJJBY, individuals must meet the following criteria:

• Age: Between 18 and 50 years (coverage extends up to 55 years upon renewal).
• Bank Account: Must have an active savings bank account.
• Consent for Auto-Debit: Policyholders must consent to auto-debit of the premium from their bank account.
• Aadhaar as Primary KYC: Linking an Aadhaar card to the bank account is mandatory for enrollment.
• Single Account Enrollment: Individuals with multiple bank accounts can join the scheme through only one account.
• NRIs Eligible: Non-Resident Indians (NRIs) with an eligible bank account in India can enroll, but claim benefits are paid in Indian currency only.
• Health Declaration: For late enrollments (after August 31, 2015), a self-attested medical certificate confirming no critical illnesses is required.

Vision of PMJJBY

The vision of PMJJBY is to create a universal social security system by providing affordable life insurance to all Indian citizens, especially those in the unorganized sector and low-income groups. The scheme aims to:

• Promote Financial Inclusion: Ensure that even the poorest sections of society have access to life insurance.
• Reduce Financial Vulnerability: Protect families from financial distress caused by the sudden loss of the primary breadwinner.
• Encourage Savings and Insurance Culture: Foster a habit of financial planning and security among the masses.
• Support Economic Stability: Strengthen the financial ecosystem by integrating banking and insurance services.

Impact of PMJJBY

Since its launch, PMJJBY has made significant strides in enhancing financial security across India. Key impacts include:

1. Mass Coverage: As of recent data, millions of Indians have enrolled in PMJJBY, with coverage extended to rural and semi-urban areas, significantly increasing insurance penetration.
2. Affordable Access: The low premium of ₹436 per year has made life insurance accessible to low-income households, reducing the financial burden of insurance.
3. Financial Security for Families: The ₹2 lakh cover has provided a safety net for nominees, helping families cope with the loss of income due to the policyholder’s death.
4. Increased Insurance Awareness: PMJJBY has played a pivotal role in raising awareness about the importance of life insurance, particularly in underserved communities.
5. Banking Integration: The scheme’s linkage with savings accounts has strengthened the banking ecosystem, encouraging account openings and financial inclusion.
6. Support for NRIs: By allowing NRIs to participate, PMJJBY has extended its reach to the Indian diaspora, ensuring broader coverage.

Enrollment Process for PMJJBY

Enrolling in PMJJBY is straightforward:

1. Visit a Participating Bank: Approach a bank tied up with LIC or other approved insurance companies.
2. Submit Application: Fill out the PMJJBY application form, available at bank branches or online (e.g., through internet banking or platforms like jansuraksha.in).
3. Link Aadhaar: Ensure your Aadhaar card is linked to your savings account for KYC purposes.
4. Enable Auto-Debit: Provide consent for the annual premium to be auto-debited from your account.
5. Health Declaration (if applicable): For late enrollments, submit a self-attested medical certificate.
6. Renewal: Ensure sufficient balance in your account by May 31 each year for seamless renewal.

Claim Process for PMJJBY

In case of the policyholder’s death, the nominee can file a claim by following these steps:

1. Inform the Bank: Contact the bank where the policyholder was enrolled.
2. Submit Documents: Provide the death certificate, nominee details, and other required documents as specified by the bank or insurer.
3. Claim Settlement: The insurance company (e.g., LIC or other tied-up insurers) processes the claim, and the ₹2 lakh sum assured is paid to the nominee.
4. Lien Clause Note: Claims for non-accidental deaths within the first 30 days of enrollment are not admissible unless the death is due to an accident.

Frequently Asked Questions (FAQs)

1. What is PMJJBY?
   PMJJBY is a one-year renewable life insurance scheme offering ₹2 lakh coverage for death due to any reason at an annual premium of ₹436.
2. Who can enroll in PMJJBY?
   Individuals aged 18–50 years with a savings bank account who consent to auto-debit and link their Aadhaar card are eligible.
3. Can I join PMJJBY with multiple bank accounts?
   No, you can enroll through only one savings bank account.
4. What is the lien period in PMJJBY?
   A 30-day waiting period applies for non-accidental deaths from the date of enrollment. Accidental deaths are exempt.
5. What happens if I exit and want to rejoin?
   You can rejoin by paying the full annual premium of ₹436, with coverage starting from the date of auto-debit.
6. Is Aadhaar mandatory for PMJJBY?
   Yes, Aadhaar is the primary KYC requirement for enrollment.
7. Who administers PMJJBY?
   The scheme is primarily administered by LIC, with other private insurers participating through tie-ups with banks.
8. Can NRIs enroll in PMJJBY?
   Yes, NRIs with an eligible bank account in India can enroll, but claims are paid in Indian currency.
9. Is there any maturity benefit in PMJJBY?
   No, PMJJBY is a pure-term insurance policy with no maturity or investment benefits.
10. How is the premium paid?
    The premium is auto-debited annually from the linked savings bank account before May 31.

Top 10 MCQs on PMJJBY with Detailed Solutions

Below are 10 multiple-choice questions (MCQs) with answers and explanations to help with SSC and other government exam preparation.

MCQ 1

What is the sum assured under PMJJBY?
A) ₹1 lakh
B) ₹2 lakh
C) ₹3 lakh
D) ₹4 lakh

Answer: B) ₹2 lakh
Explanation: PMJJBY provides a life insurance cover of ₹2 lakh in case of the policyholder’s death due to any reason.

MCQ 2

What is the annual premium for PMJJBY?
A) ₹330
B) ₹436
C) ₹500
D) ₹600

Answer: B) ₹436
Explanation: The annual premium for PMJJBY is ₹436, auto-debited from the policyholder’s savings account.

MCQ 3

What is the age limit for enrolling in PMJJBY?
A) 18–40 years
B) 18–50 years
C) 21–60 years
D) 21–55 years

Answer: B) 18–50 years
Explanation: Individuals aged 18 to 50 years can enroll, with coverage extending up to 55 years upon renewal.

MCQ 4

When was PMJJBY launched?
A) May 9, 2015
B) June 1, 2014
C) August 15, 2015
D) January 26, 2016

Answer: A) May 9, 2015
Explanation: PMJJBY was launched by Prime Minister Narendra Modi on May 9, 2015, in Kolkata.

MCQ 5

What is the lien period in PMJJBY for non-accidental deaths?
A) 15 days
B) 30 days
C) 45 days
D) 60 days

Answer: B) 30 days
Explanation: A 30-day lien period applies for non-accidental deaths from the date of enrollment, during which claims are not admissible unless the death is accidental.

MCQ 6

Who administers the PMJJBY scheme?
A) Reserve Bank of India
B) Life Insurance Corporation of India (LIC)
C) State Bank of India
D) IRDAI

Answer: B) Life Insurance Corporation of India (LIC)
Explanation: LIC is the primary administrator of PMJJBY, along with other private insurers approved for the scheme.

MCQ 7

What is the pro-rata premium for enrolling in PMJJBY in December?
A) ₹114
B) ₹228
C) ₹342
D) ₹436

Answer: B) ₹228
Explanation: For enrollments in December, January, or February, the pro-rata premium is ₹228.

MCQ 8

Can NRIs enroll in PMJJBY?
A) Yes, with an Indian bank account
B) No, NRIs are not eligible
C) Only if they reside in India
D) Only through LIC

Answer: A) Yes, with an Indian bank account
Explanation: NRIs with an eligible Indian bank account can enroll, but claims are paid in Indian currency.

MCQ 9

What is the primary KYC requirement for PMJJBY?
A) PAN Card
B) Aadhaar Card
C) Voter ID
D) Passport

Answer: B) Aadhaar Card
Explanation: Aadhaar is the primary KYC document required for enrolling in PMJJBY.

MCQ 10

Does PMJJBY offer maturity benefits?
A) Yes, ₹2 lakh on maturity
B) Yes, based on premium paid
C) No, it’s a pure-term policy
D) Only for accidental deaths

Answer: C) No, it’s a pure-term policy
Explanation: PMJJBY is a pure-term insurance scheme with no maturity or investment benefits, covering only death due to any reason.

Conclusion

The Pradhan Mantri Jeevan Jyoti Bima Yojana (PMJJBY) is a transformative initiative that has made life insurance accessible and affordable for millions of Indians. Launched on May 9, 2015, by Prime Minister Narendra Modi, it aligns with the vision of financial inclusion and social security. With its low premium, simple enrollment process, and ₹2 lakh coverage, PMJJBY continues to empower families by providing financial protection against unforeseen tragedies. For students preparing for government exams, understanding PMJJBY’s details is crucial, and the provided MCQs can aid in mastering this topic.

For more information or to enroll, visit your nearest participating bank or check the official Jan Suraksha portal (jansuraksha.in). Stay informed, stay secure!