Frequently Asked Questions & Clarification on PRADHAN MANTRI JEEVAN JYOTI BIMA YOJANA

Q1. What is the nature of the scheme?

The scheme will be a one year cov­er Term Life Insur­ance Scheme, renew­able from year to year, offer­ing life insur­ance cov­er for death due to any reason.

Q2. What would be the ben­e­fits under the scheme and pre­mi­um payable?

Rs.2 lakhs is payable on a subscriber’s death due to any rea­son. The pre­mi­um payable is Rs.330/- per annum per subscriber.

Q3. How will the pre­mi­um be paid?

The pre­mi­um will be deduct­ed from the account holder’s sav­ings bank account through ‘auto deb­it’ facil­i­ty in one install­ment, as per the option to be giv­en on enrol­ment. Mem­bers may also give one-time man­date for auto-deb­it every year till the scheme is in force, sub­ject to re-cal­i­bra­tion that may be deemed nec­es­sary on review of expe­ri­ence of the scheme from year to year.

Q4. Who will offer / admin­is­ter the scheme?

The scheme would be offered / admin­is­tered through LIC and oth­er Life Insur­ance com­pa­nies will­ing to offer the prod­uct with nec­es­sary approvals on sim­i­lar terms, in col­lab­o­ra­tion with par­tic­i­pat­ing Banks. Par­tic­i­pat­ing banks will be free to engage any such life insur­ance com­pa­ny for imple­ment­ing the scheme for their subscribers.

Q5. Who will be eli­gi­ble to subscribe?

All sav­ings bank account hold­ers in the age 18 to 50 years in par­tic­i­pat­ing banks will be enti­tled to join. In case of mul­ti­ple sav­ing bank accounts held by an indi­vid­ual in one or dif­fer­ent banks, the per­son would be eli­gi­ble to join the scheme through one sav­ings bank account only.

Q6. What is the enrol­ment peri­od and modality?

Ini­tial­ly on launch for the cov­er peri­od from 1st June 2015 to 31st May 2016 sub­scribers are expect­ed to enroll and give their auto-deb­it option by 31st May 2015, extend­able up to 31st August 2015. Enrol­ment sub­se­quent to this date will be pos­si­ble prospec­tive­ly on pay­ment of full annu­al pay­ment and sub­mis­sion of a self-cer­tifi­cate of good health.

Sub­scribers who wish to con­tin­ue beyond the first year will be expect­ed to give their con­sent for auto-deb­it before each suc­ces­sive May 31st for suc­ces­sive years. Delayed renew­al sub­se­quent to this date will be pos­si­ble on pay­ment of full annu­al pre­mi­um and sub­mis­sion of a self-cer­tifi­cate of good health.

Q7. Can eli­gi­ble indi­vid­u­als who fail to join the scheme in the ini­tial year join in sub­se­quent years?

Yes, on pay­ment of pre­mi­um through auto-deb­it and sub­mis­sion of a self-cer­tifi­cate of good health. New eli­gi­ble entrants in future years can also join accord­ing­ly. Q8. Can indi­vid­u­als who leave the scheme rejoin? Indi­vid­u­als who exit the scheme at any point may re-join the scheme in future years by pay­ing the annu­al pre­mi­um and sub­mit­ting a self dec­la­ra­tion of good health.

Sub­scribers who wish to con­tin­ue beyond the first year will be expect­ed to give their con­sent for auto-deb­it before each suc­ces­sive May 31st for suc­ces­sive years. Delayed renew­al sub­se­quent to this date will be pos­si­ble on pay­ment of full annu­al pre­mi­um and sub­mis­sion of a self-cer­tifi­cate of good health.

Q7. Can eli­gi­ble indi­vid­u­als who fail to join the scheme in the ini­tial year join in sub­se­quent years?

Yes, on pay­ment of pre­mi­um through auto-deb­it and sub­mis­sion of a self-cer­tifi­cate of good health. New eli­gi­ble entrants in future years can also join accordingly.

Q8. Can indi­vid­u­als who leave the scheme rejoin?

Indi­vid­u­als who exit the scheme at any point may re-join the scheme in future years by pay­ing the annu­al pre­mi­um and sub­mit­ting a self dec­la­ra­tion of good health.

Q9. Who would be the Mas­ter pol­i­cy hold­er for the scheme?

Par­tic­i­pat­ing Banks will be the Mas­ter pol­i­cy hold­ers. A sim­ple and sub­scriber friend­ly admin­is­tra­tion & claim set­tle­ment process shall be final­ized by LIC / cho­sen insur­ance com­pa­ny in con­sul­ta­tion with the par­tic­i­pat­ing bank.

Q10. When can the assur­ance on life of the mem­ber terminate?

The assur­ance on the life of the mem­ber shall ter­mi­nate / be restrict­ed accord­ing­ly on any of the fol­low­ing events:

1. On attain­ing age 55 years (age near birth day), sub­ject to annu­al renew­al up to that date (entry, how­ev­er, will not be pos­si­ble beyond the age of 50 years).
2. Clo­sure of account with the Bank or insuf­fi­cien­cy of bal­ance to keep the insur­ance in force.

iii. In case a mem­ber is cov­ered through more than one account and pre­mi­um is received by LIC / insur­ance com­pa­ny inad­ver­tent­ly, insur­ance cov­er will be restrict­ed to Rs. 2 Lakh and the pre­mi­um shall be liable to be forfeited.

Q11. What will be the role of the insur­ance com­pa­ny and the Bank?

1. The scheme will be admin­is­tered by LIC or any oth­er Life Insur­ance com­pa­ny which is will­ing to offer such a prod­uct in part­ner­ship with a bank / banks.
2. It will be the respon­si­bil­i­ty of the par­tic­i­pat­ing bank to recov­er the appro­pri­ate annu­al pre­mi­um in one install­ment, as per the option, from the account hold­ers on or before the due date through ‘auto-deb­it’ process and trans­fer the amount due to the insur­ance com­pa­ny. iii. Enroll­ment form / Auto-deb­it autho­riza­tion / Con­sent cum Dec­la­ra­tion form in the pre­scribed pro­for­ma, as required, shall be obtained and retained by the par­tic­i­pat­ing bank. In case of claim, LIC / insur­ance com­pa­ny may seek sub­mis­sion of the same. LIC / Insur­ance Com­pa­ny also reserve the right to call for these doc­u­ments at any point of time.

Q12. How would the pre­mi­um be appropriated?

1. Insur­ance Pre­mi­um to LIC /other insur­ance com­pa­ny: Rs.289/- per annum per member;
2. Reim­burse­ment of Expens­es to BC/Micro/Corporate/Agent : Rs.30/- per annum per member;
3. Reim­burse­ment of Admin­is­tra­tive expens­es to par­tic­i­pat­ing Bank: Rs.11/- per annum per member.

Q13. Will this cov­er be in addi­tion to cov­er under any oth­er insur­ance scheme the sub­scriber may be cov­ered under?

Yes.