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Pradhan Mantri Suraksha Bima Yojana (PMSBY), Pradhan Mantri Jeevan Jyoti Bima Yojana (PMJJBY) – Details & Review

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pmjjby-pmsby

In Budget 2015, Finance minister Arun Jaitley announced these social security schemes:

  • Pradhan Mantri Suraksha Bima Yojana (for Accidental Death and Disability),
  • Pradhan Mantri Jeevan Jyoti Bima Yojana (for life insurance) and
  • Atal Pension Yojna (for pension).

These schemes were launched in May 2015 and will be effective from 01-June-2015.

Details of Pradhan Mantri Suraksha Bima Yojana (PMSBY) – for Accidental Death and Disability

Risk Coverage • Accidental death  – Rs 2 Lakhs
  • Full disability (Total and irrecoverable loss of both eyes or loss of use of both hands or feet or loss of sight of one eye and loss of use of hand or Foot ) – Rs 2 Lakh and
  •  Partial disability (Total and irrecoverable loss of sight of one eye or loss of use of one hand or foot ) – Rs 1 Lakh.
Premium Rs 12 per annum (directly auto-debited by bank i.e. no cash/cheque/card)
Eligibility Available to people in age group 18 to 70 years with bank account. 
  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.
Tax aspects The premium paid will be deductible under section 80C and also the proceeds amount will get tax-exemption u/s 10(10D). But if the proceeds from insurance policy exceed Rs.1 lakh , TDS at the rate of 2% from the total proceeds if no Form 15G or Form 15H is submitted to the insurer.
Things to Note 1.  You can only enrol with one bank account
2.  You can enrol by 31 May 2015 (now extended to 31 Aug 2015)
3.  Policy shall not be issued if nominee details are not provided.


Process :  
You can enrol by accepting the offer via SMS or via email or via submitting the consent form. Or via Netbanking.

For e.g. Customers of banks like HDFC Bank have got SMS
Dear Customer, Get Rs 2 lac Accident Cover with Pradhan Mantri Suraksha Bima Yojna for an annual premium of Rs 12. To subscribe SMS PMSBY Y to 5676712 from your registered mobile number. Premium amount will be debited from Your HDFC Bank Savings Account. For T & C & other details click here

Details of Pradhan Mantri Jeevan Jyoti Bima Yojana (PMJJBY) – Life Insurance

Risk Coverage: Rs. 2 Lakh in case of death for any reason.

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 by bank in one instalment.

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.

The Life Cover will be on launch for the cover period 1st June 2015 to 31st May 2016, subscribers will be required to enroll and give their auto-debit consent by 31st May 2015. Late enrollment for prospective cover will be possible up to 31st August 2015,

The official website of the scheme is www.jansuraksha.gov.in  

National Toll-Free – 1800-180-1111 / 1800-110-001 and StateWise Toll free number are listed in this document Statewise Toll-Free (pdf)

Forms are available in Bangla,English Gujarati,Hindi,Kannada,Marathi,Odia,Tamil and Telugu which can be downloaded from www.jansuraksha.gov.in/forms.aspx

Comparison of Pradhan Mantri Suraksha Bima Yojana (PMSBY), Pradhan Mantri Jeevan Jyoti Bima Yojana (PMJJBY) 

pmjjby-pmsby

Enrollment will be possible up to 31st August 2015

Summary

As the cover in these schemes is limited to Rs 2 Lakhs, these schemes are targeted for people in unorganised sector and have low income.

For people in middle income group, the cover amount will not be sufficient.

If you have any queries related to this article or any other personal finance query ( Investment, Taxation etc), please comment below

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About wealth18

The author is a Chartered Accountant and loves to write about Personal Finance, Wealth Management, Taxation etc. Disclaimer - The articles on this website is for informational and knowledge purposes and should not be treated as financial advice, Please consult your financial advisor before taking any investment decision.

3 comments

  1. Can i reject/withdraw the proposal as my two banks deducted the same..plz give procedure to cansal auto debit fasility.

    • You need to contact one of the banks and let then know that you are already registered at another bank and ask them to cancel.

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