Pradhan Mantri Jeevan Jyoti Bima Yojana (PMJJBY)

Pradhan Mantri Jeevan Jyoti Bima Yojana is a social security and life insurance scheme launched by Prime Minister Narendra Modi and implemented by the Central Government of India. Pradhan Mantri Jeevan Jyoti Bima Yojana is a 1-year life insurance scheme that can be renewed annually. Pradhan Mantri Jeevan Jyoti Bima Yojana offers only a mortality cover, and thus, benefits incur only to the beneficiary/nominee of the scheme.


This Pradhan Mantri Yojana has been initiated with the objective of increasing life insurance penetration, providing immediate relief with financial benefits to the family of insured applicants. Moreover, the government aims to spread awareness about the importance of life insurance. One of the biggest issues faced by the Government of India is numerous inactive accounts under Pradhan Mantri Jan Dhan Yojana. With the introduction of the auto-debit facility under this Pradhan Mantri Jeevan Jyoti Yojana, these accounts can be maintained functional and operational hassle in collecting premium/installments for other relevant security schemes can be eliminated.

Eligibility criteria

This yojana is available for 18–50-year-old individuals. Applicants should have a bank account. Those who avail of this scheme before 50 years of age can avail life cover until 55 years of age. However, the premium needs to be paid consistently to obtain benefits.

For availing the benefits offered by the scheme, it is mandatory to link aadhaar card to the participatory bank account.


This scheme is administered through Life Insurance Corporation and other relevant Indian private life insurance companies. For enrolment, one should approach their banks for tying up with insurance companies. One can download and fill the form available at the official website of Pradhan Mantri Jeevan Jyoti Bima Yojana and submit to bankers.

Enrollment period

Under the scheme, the cover or enrolment period is from June 1 of each year to May 31 of the subsequent year. By May 31, subscribers are expected to give in their auto-debit consent. As of May 2018, over 5.35 crore Indian citizens have enrolled for Pradhan Mantri Jeevan Jyoti Bima Yojana and the total number of claims received until May 2018 was over 1,02,849.

Applicants who happen to exit the scheme at any point can rejoin the scheme in the future by submitting a declaration of their good health.

Waiting period for receiving claims

Under Pradhan Mantri Jeevan Jyoti Bima Yojana, a risk cover is applicable only after the initial 45 days of enrolling in the scheme; this suggests that insurers are not required to settle any claim during the initial 45 days. Of note, any unnatural deaths due to accidents shall be exempt and paid under the scheme.

What are the benefits available under the scheme?

  • Death benefit: The yojana provides mortality coverage of Rs. 2 lac to the nominee of the scheme.
  • Maturity benefit: Given that Pradhan Mantri Jeevan Jyoti Bima Yojana is a pure term insurance plan, it does not include any maturity or surrender benefits.
  • Tax benefit: Importantly, the premium paid is eligible for tax deduction under section 80C of the Income Tax Act of 1961. If an insurance holder fails to submit form 15 G or 15 H, any life insurance exceeding Rs. 1 lac is taxable by 2%.
  • Risk coverage: Pradhan Mantri Jeevan Jyoti Yojana proffers 1-year risk coverage. The scheme can be renewed yearly. Moreover, a scheme holder can opt for a duration longer than 1 year by opting for an auto-debit option linked to their bank account. Moreover, Rs. 2 lac is provided as a risk coverage in case of death due to any reason.
  • Premium: Scheme holders are required to pay Rs. 330 annually. The amount is to be deducted by the bank every year from the linked bank account in a single installment.

Implementation of the scheme

Pradhan Mantri Jeevan Jyoti Bima Yojana is offered by Life Insurance Corporation and other insurers in the scheme. There are many government entities that co-contribute certain premium amounts for many categories of their respective beneficiaries out of the Public Welfare Fund, whereas Common Publicity Expenditure is handled by the government of India.

Master Policy Holders

Banks associated with Pradhan Mantri Jeevan Jyoti Bima Yojana are known to be master policyholders. Life Insurance Corporation consults a participating bank and finalizes subscriber-friendly administration and claim settlement protocol.


To avail of the benefits, nominees are required to approach the bank and provide a death certificate of the applicant. A nominee can collect a claim form from the bank or any related designated sources, including insurance company branches, hospitals, and agents. The claim form along with death receipt and death certificate are then filled and submitted to the bank. Further steps are taken by the respective bank, and at the end of the process, the nominee receives all the benefits.

Termination of assurance

Owing to the following reasons, assurance on the life of a member is subjected to the termination. In this case, benefits are not payable.

  1. If applicants whose age is near 55 years old (near their birthday) apply for annual renewal, assurance is terminated.
  2. If applicants, due to any reason, close their bank accounts or fail to maintain sufficient balance to maintain the insurance money in force, termination of assurance is implied.
  3. If an applicant registers for Pradhan Mantri Jeevan Jyoti Bima Yojana via more than one account at a time, insurance cover is curbed to Rs. 2 lac and the premium is usually charged by the government.
  4. Owing to any technical or administrative issues, if an insurance cover of an applicant is ceased, the issue is generally reinstated on receiving a complete annual premium.

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