Pradhan Mantri Suraksha Bima Yojana Pradhan Mantri Jeevan Jyoti Bima Yojana

The Finance Minister in his Budget Speech 2015-16, announced two Social Security Schemes in the Insurance Sector, namely the Pradhan Mantri Suraksha Bima Yojana (PMSBY) and Pradhan Mantri Jeevan Jyoti Bima Yojana (PMJJBY). Major Highlights of Both the Schemes are as Under.

Highlights of the Pradhan Mantri Suraksha Bima Yojana (Pmsby – Scheme 1 – for Accidental Death Insurance).

Eligibility: Available to people in age group 18 to 70 years with bank account.

Premium: Rs.12 per annum.

Payment Mode: The premium will be directly auto-debited by the bank from the subscribers account. This is the only mode available.
Risk Coverage: For accidental death and full disability – Rs.2 Lakh and for partial disabilityRs.1 Lakh.
Eligibility: Any person having a bank account and Aadhaar number linked to the bank account can give a simple form to the bank every year before 1st of June in order to join the scheme. Name of nominee to be given in the form.
Terms of Risk Coverage: A person has to opt for the scheme every year. He can also prefer to give a long-term option of continuing in which case his account will be auto-debited every year by the bank.
Who will implement this Scheme:
The scheme will be offered by all Public Sector General Insurance Companies and all other insurers who are willing to join the scheme and tie-up with banks for this purpose.

Highlights of The Pradhan Mantri Jeevan Jyoti Bima Yojana  (PMJJBY – SCHEME 2 – FOR LIFE INSURANCE COVER) 

Eligibility: Available to people in the age group of 18 to 50 and having a bank account. People who join the scheme before completing 50 years can, however, continue to have the risk of life cover up to the age of 55 years subject to payment of premium.
Premium: Rs.330 per annum. It will be auto-debited in one instalment.
Payment Mode: The payment of premium will be directly auto-debited by the bank from the subscribers account.
Risk Coverage: Rs.2 Lakh in case of death for any reason.
Terms of Risk Coverage: A person has to opt for the scheme every year. He can also prefer to give a long-term option of continuing, in which case his account will be auto-debited every year by the bank.
Who will implement this Scheme:
The scheme will be offered by Life Insurance Corporation and all other life insurers who are willing to join the scheme and tie-up with banks for this purpose.
Income Tax benefit : The premium paid is eligible for Deduction u/s 80C
Government Contribution In Both the Scheme above:
  1. Various other Ministries can co-contribute premium for various categories of their beneficiaries out of their budget or out of Public Welfare Fund created in this budget out of unclaimed money. This will be decided separately during the year.
  2. Common Publicity Expenditure will be borne by Government.

 

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