This post is written by Shiv Kukreja, who is a Certified Financial Planner and runs a financial planning firm, Ojas Capital in Delhi/NCR. He can be reached at skukreja@investitude.co.in
“Insurance sirf ek rupay mein – Aisa Kaise?” The boy asks his father and the father’s response makes his daughter emotional. You must have watched this commercial on your TV sets many a times this week as the government has launched its Jan Suraksha initiative very aggessively.
Prime Minister Mr. Narendra Modi is in Kolkata today and will be launching Pradhan Mantri Suraksha Bima Yojana (PMSBY), Pradhan Mantri Jeevan Jyoti Bima Yojana (PMJJBY) and Atal Pension Yojana (APY) from there. These schemes are targeted to provide social security benefits to a large percentage of the low income earning population in India.
Pradhan Mantri Suraksha Bima Yojana (PMSBY)
Policy Coverage – The scheme offers to provide you or your family a cover of up to Rs. 2 lacs in case of any mishappening, resulting into death or disability of the insured. In case of death or full disability, you or your family will get Rs. 2 lacs and in case of partial disability, you will get Rs. 1 lac. Full disability means loss of both eyes or both legs or both hands, whereas partial disability means loss of one eye or one leg or one hand.
Age of the Insured – Savings bank account holders aged between 18 years and 70 years are eligible to apply for this scheme. People aged more than 70 years will not be able to get the benefits of this scheme.
Premium Amount – It costs you just Rs. 12 in annual premium for having an accidental death or disability cover of Rs. 2 lacs under this scheme. It works out to be just Re. 1 a month, which is extraordinarily low. Again, your age has nothing to do with the premium payable for your insurance cover under this scheme as the premium is fixed at Rs. 12 for a cover of Rs. 2 lacs.
Period of Insurance – You will remain insured for a period of one year from June 1, 2015 to May 31, 2016. Next year onwards as well, the risk cover period will remain to be June 1 to May 31.
Administrators for PMSBY – The scheme would be offered / administered by many of the general insurance companies, both in the public sector as well as in the private sector. Participating banks will be free to engage any such general insurance company for implementing the scheme for their subscribers. National Insurance Company Limited, Oriental Insurance Company Limited and ICICI Lombard are some of the companies which would be offering this scheme.
Auto Debit Facility – You will be required to provide your consent for auto debit of Rs. 12 as the annual premium from any one of your bank accounts at the time of enrolling for this scheme. This premium of Rs. 12 will get deducted from your savings bank account through auto debit facility every year between May 25 and June 1.
Last Date for Enrolment – May 31, 2015 is the last date for getting enrolled for this scheme, but the government has given an extension of three months up to August 31, 2015 for us to get enrolled and give auto-debit consent for this scheme. This enrolment period may be extended by the government for another period of three months, up to November 30, 2015.
Those joining this scheme subsequent to May 31, 2015 will have to pay the full year’s premium of Rs. 12 and agree to specified terms of this scheme.
Toll-Free Numbers – 1800 110 001 / 1800 180 1111 – These two are the National Toll-Free Numbers for this scheme. You can check the state-wise toll-free numbers from this link – State-Wise Toll Free Numbers
Service Tax Exempt – Yes, Finance Minister Mr. Arun Jaitley has proposed to exempt this scheme from service tax. So, you will not be charged any service tax on the premium payable.
Know Your Customer (KYC) – Aadhaar Card issued by the UIDAI will be the primary requirement for your KYC under this scheme.
Application Form – Here you have the link to the application form for you to enroll yourself for this scheme – Application Form for PMSBY
Pradhan Mantri Jeevan Jyoti Bima Yojana (PMJJBY)
Age of the Insured – Bank account holders aged between 18 and 50 years are eligible to apply for this scheme. So, if you are aged more than 50 years, you are not eligible to enroll yourself for this scheme. But, once enrolled, you can continue with this scheme till you attain the age of 55 years.
Premium Amount – Less than Re. 1 a day or an annual premium of Rs. 330 is what you need to pay to get a life cover of Rs. 2 lacs. No matter what your age is, the premium is fixed at Rs. 330 for a life cover of Rs. 2 lacs. This annual premium of Rs. 330 has been fixed for the first three years from June 1, 2015 to May 31, 2018, after which it will again be reviewed based on the insurers’ annual claims experience.
Period of Insurance – June 1st, 2015 to May 31st, 2016 is the period for which this scheme will cover all kind of risks to your life in the first year of operation. Next year onwards as well, the risk cover period will remain June 1 to May 31.
LIC as the Administrator – The scheme would be offered / administered by the Life Insurance Corporation (LIC) and other life insurance companies like SBI, ICICI etc. through their tie ups with the interested banks like SBI, ICICI, Canara Bank etc. Participating banks are free to engage any such life insurance company for implementing this scheme for their subscribers.
Auto Debit Facility – Annual premium of Rs. 330 will get deducted from your savings bank account through auto debit facility. You will have to give your consent for auto debit of premium from any one of your bank accounts at the time of enrolling for this scheme.
Last Date for Enrolment – May 31, 2015 is the last date for getting enrolled for this scheme, but the government has given an extension of three months up to August 31, 2015 for us to get enrolled and give auto-debit consent for this scheme. This enrolment period may be extended by the government for another period of three months, up to November 30, 2015.
Those joining this scheme subsequent to May 31, 2015 will have to pay the full year’s premium of Rs. 330 and submit a self-certificate of good health in the prescribed proforma.
Toll-Free Numbers – 1800 110 001 / 1800 180 1111 – These two are the National Toll-Free Numbers for this scheme. You can check the state-wise toll-free numbers from this link – State-Wise Toll Free Numbers
Service Tax Exempt – Finance Minister Mr. Arun Jaitley has proposed to exempt this scheme from service tax. So, you will not be charged any service tax on the premium payable.
Know Your Customer (KYC) – Aadhaar Card issued by the UIDAI will be the primary requirement for your KYC under this scheme.
Application Form – Here you have the link to the application form for you to enroll yourself for this scheme – Application Form for PMJJBY
I covered Pradhan Mantri Jeevan Jyoti Bima Yojana yesterday, a scheme which provides life insurance cover of Rs. 2 lacs to its subscribers for an annual premium of only Rs. 330. I think both these schemes are quite attractive and provide a combined cover of Rs. 4 lacs for a premium of just Rs. 342, which works out to be less than Re. 1 a day.
In a country like India, where many members of a family are dependent on the primary earner’s income to survive and grow, I think these schemes would play a very important role in providing a much required social security comfort to the citizens of India. I think the government is doing a wonderful job in taking these initiatives to attract low income group people to get themselves covered against the risks of untimely death or accidental disabilities. I think you should definitely subscribe to both these schemes.
hello sir,
me 2 years se NPS contribution kar raha hu. me ye jaan na chahta hu ki kya ye NPS yojana 1-6-2015 se Atal Pension Yojana me convert ho rahi he?
Hi Hitesh,
Only NPS Lite – Swavalamban Yojana will be merged with the Atal Pension Yojana (APY) w.e.f. June 1, 2015.
Sir, I want to purchase Pradhan Mantri Suraksha Bima Yojana (PMSBY)for our workers/ labour…and when I read the scheme offered by the government, I noticed that there is no definition to the word “Accident”. Please confirm whether the word “Accident” incudes only road accident or any other accident as well? Like any mishap during work in office or natural calamity eg. earthquake…if yes, please share the link or any document as confirmation for the same by the government, if any.
Hi Manuj,
‘Accident’ covers different types of accidents like road, rail accidents, accidents due to natural calamities and arising out of terrorism / terrorist acts. As of now, there is no such document available for PMSBY, but here you have the link to one such policy from National Insurance – https://nationalinsuranceindia.nic.co.in/portal/page/portal/Corporate/Home/PersonalinsuranceProduct?_piref74_31257_74_27152_27152.next_page=%2Fpersonalpoliciesservlet?policyid=6
1) I have a joint account in name of me and my wife. should both of us entitled for PMSBY & PMGGBY from same (joint) account?
2) Should i subscribe these scheme through online?
1. Yes, both of you are eligible for these schemes with a single joint account.
2. It is upto you how you want to go about it, online or offline.
If i have an lic policy n on my death can i claim this insurance money from lic n this pmjjby policy together…..or any one of them nly will be eligible
Thanks in advance
Hi Darsh,
Your nominee(s) can file claims against both your policies.
Dear Sir,
In both schemes PMJJBY & PMSBJ, how nominees will claims and what documents will require after death/dismissed of subscriber.
Please explain….?
Hi Tako,
Nominees will file their insurance claims in a similar manner as it is in all other insurance policies. Death/disability certificate along with the certificate of insurance will be required to be submitted.
Dear Mandy,
There r two different plan.U can take both or either any one.
One is life insurance cover another only accident related.
Hello sir,
I’m 23 years old. Which policy am I eligible to? Either to 330 /- or 12 /- ?
Hi Nandy,
You are eligible to both these policies.
Hi,
I am currently insured with LIC in endowment plans as well as TERM plan. Still i want to take this insurance under PMJJY. Tomorrow if i die i will get sum assured from LIC as well as PMJJY right? Or only one policy provider? Pls clarify.
Hi Khushroo,
You’ll get insurance claim under both your policies.
Hi,
I am currently located in USA and will be here for a few more months.How can I activate the PMSBY and PMJJBY schemes? I have an account in ICICI bank.
Hi Rubai,
I think you can subscribe to these schemes on the ICICI Bank net banking platform.
Hi, My name is Firoz
In (PMSBY) I want to know about documents required at the time of claim to prove that it was an accident. who will be the intermediary to helps us in settlement of the claim from the insurance company. How our claim will be reimbursed (fund transfer). Wheatre politicians are allowed to take (PMSBY) policy.
Hi Firoz,
I do not have any information regarding claim settlement procedure as yet. Also, I don’t find any reason why politicians would be barred from taking PMSBY policy.
i have made PMSBY application through my internet banking login, Now from social security schemes tab, it was showing the status
One item found.1
Reference number: 1200451299
Scheme Name :Pradhan Mantri Suraksha Bima Yojana (PMSBY) Bank Name: State Bank of India
Branch Code: A0174
i didnt sure i was with this scheme now because money also was not debited from me. may i know whats it status? am i with this scheme or i have to register again for this?
It seems that your online application has got submitted. The premium might get deducted between May 25 and June 1.
Hi,
Pls let me know, in the life insurance they have a clause that it will continue to be valid till one reaches 55years of the age, does this mean after 55 years of age the life insurance will automatically get discontinued?
If it gets discontinued do we get the maturity amount with interest that we have paid per annum.
Also let me know if there is a maturity period other than death?
thanks,
Shailendra.
Hi,
1. Coverage under PMJJBY (life insurance) will be provided only till the age of 55 years. So, after 55 years of age, your life insurance agreement will automatically cease. However, PMSBY is valid till 70 years of age.
2. Nothing will be paid back to you as the maturity amount or principal premium amount with interest.
3. There is no maturity period other than death.
Thanks for the information
You are welcome!
sir. i am from punjab i have already account in pnb bank.
can i PMJJBY buy online. plz let me know if i can get this plan online
Thanks.
Hi Surjit,
You need to check the same with PNB. We do not have this info as yet.
I have heard that if i have already cover under other insurance (not under these schemes), then eligible for these schemes?
There is no such restriction in these schemes.
Sir, Can I apply for all 3 yojana such as Suraksha bima yojana, jeevan jyoti bima yojana & Atal pension yojana at a time? Sir, Can a Government servant apply for all these three yojana?
Yes, if eligible as per the terms of all these policies, one can subscribe to all of them. For APY, you should not be more than 40 years old.
Will these both insurance products remain valid if the insured person is affected at a foreign land?
To whom should one run after for the claim?
Not sure, but I think both these policies would cover the insured person while he/she is outside India. You need to approach the bank and the insurance company for claiming the sum assured.
In case if a person has already loss his eye during his early years than how the clause will be useful”
“of Total and irrecoverable loss of sight of one eye or loss of use of one hand or foot sum insured will be Rs 1 lakh.’
Can he claim it after 45 days of policy..
Hi Rahul,
Though I am not sure, I think this policy will cover the accidental damage which occurs during the policy tenure i.e. between June 1, 2015 and May 31, 2016. So, in this case, I think you’ll get benefits of a partial disability i.e. Rs. 1 lakh.
Thanks for a Reply.
One more thing we do have heard about insurance covered on debit card, 5 lac cover if debit card swiped in last 2-3 months. In that case can some one claim on both i.e debit card insurance cover and PMSBY.
Yes, you can claim insurance amounts from both the sources, i.e. the debit card cover as well as PMSBY.
My father expired in road accident on 14/Feb 2017 , I gave all belonging documents to my bankers to clamp amount approx 2 months back.
Yet I have not receive amount nor I’m getting any information from bankers.
What is exactly processor to clamp ??
How much time does department take to release insurance amount.
What can i do that insuance
Soumen, aapki query clear nahin hai.
Do these schemes actually work. If something bad happens how easy will it be to claim the insurance amount? Or we have to keep running for this document, that photocopy and give some chai-paani. The process will be difficult for low income groups, whom this scheme seems to target.
Hi Manas,
Though there is no history of claim settlements for these schemes, I hope nothing of this sort happens. I strongly believe a country is how its people are. Some new initiatives have been taken by this government in the positive direction, so we should think positive and contribute in the development of our country.
One of the terms say, “Policy shall not be issued if nominee details are not provided in SMS / available in SB account.”. Does that mean that the nominee details should be present in my bank accounts also?
How can we simply nominate anyone with just a name without specifying any other details like DOB or relationship?
What if I enrol myself from both my bank accounts (SBI & ICICI)?
Hi Alex,
1. As it is an insurance contract, it is mandatory to provide the nominee’s details, as all the benefits will be payable to the nominee in the policy holder’s absence. So, you need to mention the name & address of the nominee along with your relationship with him/her in the Consent-cum-Declaration Form.
So, if you do not provide nominee details in the form or if it is not available in your bank details, the insurance company will not be able to settle the claim once raised. Hence, in the absence of the nominee’s details, the insurance company will not be able to issue you the policy.
2. It is not allowed to get yourself enrolled with two different banks. In case the same is found to exist, premium shall stand forfeited and no claims would be paid.
All bank accounts have already the records of nominees, if anything is to be corrected you need to change it in your respective banks accordingly..
I think a person is eligible to take these one policies in your name as they are asking you to submit the kyc..
Moreover we need to be smart to avail the scheme.. Not to be over smart.. Where no other govt provided the schemes like this..