Prime Minister of India launched Pradhan Mantri Suraksha Bima Yojana and Pradhan Mantri Jeevan Jyoti Bima Yojana on May 9, 2015. These two schemes are very helpful for common people. One is a Life Insurance policy called Pradhan Mantri Jeevan Jyoti Bima Yojana (PMJJBY), and another is an Accidental Insurance policy called Pradhan Mantri Suraksha Bima Yojana (PMSBY).
Pradhan Mantri Jeevan Jyoti Bima Yojana (PMJJBY) is nothing but a pure Life Insurance policy. Speaking to news Karnataka Raveendra Pai, Manager, Loans and Advances, KVGB Regional Bank said “PMJJBY provides a death coverage of Rs. 2,00,000 to the beneficiary of the policy in case of the sudden demise of the insured person. I have seen a lot of policyholders getting benefits from this programme. In the case of joint account holders, all holders are eligible to join the scheme. And linking of Aadhar card to the savings account is mandatory.”
To avail of the benefit of this scheme, one must have a savings bank account from the participating bank. People of the age group of 18 to 50 are eligible to get the benefit of this scheme (life coverage up to 55 years). In case one has multiple savings account in one or different bank, then the person is eligible to buy this product only through one savings account.
The premium will be Rs.330 per year. This premium will be auto-debited from the savings account in one installment on or before 31st May of each annual coverage.
Life Insurance Corporation of India (LIC) and few other life insurers manage this scheme in coordination with the participating banks.
Once the policyholder attains the age of 55 the membership terminates.
Pradhan Mantri Suraksha Bima Yojana (PMSBY) scheme is managed by the United India Insurance Company which offers accidental death and disability cover for death or disability due to an accident. It is exactly like Health Insurance, where you have to renew it on a yearly basis. You get the benefit only in the case of an accident. Only death and disability arising out of accident will be covered and death due to natural reasons such as heart attack is excluded.
All savings bank holders in the age of 18 to 70 Yrs in the participating banks will be eligible to join this scheme. In case of the sudden demise of the policyholder due to any kind of accident, the nominee will receive the available life risk coverage of the sum assured of 2 lakhs.
The premium is Rs.12 per annum per member. This premium will be deducted from the member’s savings bank account yearly through an auto-debit facility on or before 1st June every year.
Once the policyholder attains the age of 70 the membership terminates.
Speaking to News Karnataka Shyama Prakash KVGB Bank, Arasinamakki said “Those who wish to enroll can do so by paying the full annual premium amount anytime during the year. The aim of these two policies are to be affordable for every class of society, especially the low-income group. Having a government-backed scheme to financially protect your loved ones in case anything were to happen to you is a wise decision”.