PMJJBY FAQs - India Post Payments Bank
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FAQs – Pradhan Mantri Jeevan Jyoti Bima Yojana
Q. What is the revised premium payable structure under the scheme?
A. WEF 01/06/2022, Premium on fresh PMJJBY will be charged on pro-rata basis as under: For all fresh PMJJBY done during the months of     Period Amount June To August                              ₹446 Sep. To Nov                                  ₹342 Dec To Feb                                    ₹228 March To May                                ₹114 Eligibility norms will be as before. Note: If existing member does not renew the policy on due date i.e., on 1st June & later come back for enrolment then same will be treated as a fresh member & premium as per fresh enrolment will be collected & new member number will be allocated.
Q. Can I buy the insurance for somebody else?
Q. Is there any GST applicable on Premium paid?
Q. If the age limit is 50 years to buy the insurance, how is the benefit available post 50 years and till 55 years of age?
A. Benefit till 55 years is for subscribers with every year renewals without fail till 54 years of age.
Q. Who will be eligible to subscribe?
A. All individual (single or joint) bank account holders in the age 18 to 50 years will be entitled to join. In case of multiple bank accounts held by an individual in one or different banks, the person would be eligible to join the scheme through one bank account only.
Q. How will the premium be paid?
A. 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.
Q. What is the enrolment period and modality?
A. A. The cover shall be for the one-year period stretching from 1st June to 31st May for which option to join / pay by auto-debit from the savings bank account in the prescribed format will be required to be given by 31st May of every year. For customers who join on or after 1st of June, the cover would start from the date of account holder’s request and end on May 31st, next year. In case of joint accounts, each account holder can take separate covers of Rs.2 Lakhs each and each life will have to individually enroll in the scheme by paying separate premium per life.
Q. What are the changes in the terms of insurance coverage applicable to new subscribers?
A. For subscribers enrolling for the first time on or after 01st June 2016, insurance benefit shall not be available for death (due to any cause other than accident) occurring during the first 45 days from the date of enrolment into the scheme. Death due to accidental causes will be covered from day one of insurance coverage.
Q. Can individuals who leave the scheme re-join?
A. Individuals who exit the scheme at any point may re-join the scheme in future years by paying the annual premium. However, for such subscribers, insurance benefit shall not be available for death (due to any cause other than accident) occurring during the first 45 days from the date of enrolment into the scheme.
Q. When can the assurance on life of the member terminate?
A. A. The assurance on the life of the member shall terminate / be restricted accordingly on any of the following events: I. On attaining age 55 years (age near birthday), subject to annual renewal up to that date (entry, however, will not be possible beyond the age of 50 years) II. 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 other insurer, insurance cover will be restricted to Rs. 2 Lakh and the premium paid for duplicate insurance(s) shall be liable to be forfeited.
Q. How would the premium be appropriated?
A. New Enrolment:
a. Insurance Premium to Insurance company: Rs.395/- per annum per member;
b. Reimbursement of Marketing Expenses to India Post Payments Bank: Rs.30/- per annum per member;
c. Reimbursement of Administrative expenses to India Post Payments Bank: Rs.11/- per annum per member. Policy Renewal:
a. Insurance Premium to Insurance company: Rs.425/- per annum per member;
b. Reimbursement of Administrative expenses to India Post Payments Bank: Rs.11/- per annum per member.
Q. Will this cover be in addition to cover under any other insurance scheme the subscriber may be covered under?
Q. Are NRIs eligible for coverage under PMJJBY?
A. Any NRI having an eligible bank account with a bank branch located in India is eligible for purchase of PMJJBY cover subject to fulfilment of the terms and conditions relating to the scheme. However, in case a claim arises, the claim benefit will be paid to the beneficiary/ nominee only in Indian currency.
Q. Does the PMJJBY cover death resulting from natural calamities such as earthquake, flood and other convulsions of nature? What about coverage from suicide / murder?
A. All these events are covered as PMJJBY covers death due to any reason.
Q. Contrary to other Life Insurance products, benefit under PMJJBY is payable only to nominee of the insured on the death of the insured. Why is there no maturity benefit or surrender value, which is available in normal life insurance policies?
A. The cover under PMJJBY is for death only and hence benefit will accrue only to nominee. PMJJBY is a pure term insurance policy, which covers only mortality with no investment component. The pricing is also accordingly low when compared to other life insurance policies where maturity benefits, surrender value etc.is available. It has been designed to provide life insurance cover to weaker sections of the society. With this aim, the premium is kept low, eliminating the investment component.