Pradhan Mantri Jeevan Jyoti Bima Yojana (PMJJBY)

✦Key Features

• ₹2 lakh life insurance coverage on death from any cause (natural, accidental, homicide)
• Annual premium: ₹436/year only (auto-debited from bank account every June 1)
• 23.63 crore cumulative enrollments (Apr 2025); 53% women beneficiaries; 74% from rural areas
• ₹18,397.92 crore paid in 9.22 lakh claims by Apr 2025
• Eligibility: 18-50 years; bank/post office account; renewed annually
• Part of Jan Suraksha trinity: PMJJBY (life) + PMSBY (accident) + APY (pension)
• Launched 9 May 2015 by PM Modi simultaneously with PMSBY and APY

✓Eligibility Criteria

• Individuals aged between 18 to 50 years with a savings bank or post office account.
• Applicants must give their consent to join the scheme and enable auto-debit of the premium from their linked account.
• The individual must hold a valid Aadhaar card that is linked to the participating bank account.
• Those who join after the initial period must provide a self-certificate of good health as per the bank's requirement.

★Benefits

• A life insurance cover of Rs. 2 lakh is provided to the nominee in case of the death of the insured due to any reason.
• The coverage period is fixed from 1st June of a year to 31st May of the following year.
• The scheme offers a seamless annual renewal process through automatic electronic debit from the linked account.
• The premium paid is eligible for tax benefits under Section 80C of the Income Tax Act.

▶Application Process

• Visit the nearest branch of the bank or post office where the savings account is maintained.
• Fill out the PMJJBY enrollment form with required personal and nominee details.
• Submit the signed consent form for the automatic deduction of the annual premium amount.
• Ensure the bank account has sufficient balance for the premium deduction on or before 31st May every year.

₹ Budget Allocation

250

Funding Ratio (Centre:State): Self-funded via premium payments; Government facilitates implementation via PSBs and LIC.

Historical Context

Launched on May 9, 2015, in Kolkata to replace the Janashree Bima Yojana and Aam Aadmi Bima Yojana which had low penetration and high administrative costs.

Challenges

• Low financial literacy leading to lack of awareness about the 'auto-debit' mechanism.
• High claim-rejection rates due to mismatch in bank details or late notification.
• Limited commission for BCs (Business Correspondents) reduces their incentive to market the scheme in remote areas.

Reforms & Recommendations

• Digitalization of the entire claim process to achieve 48-hour settlement.
• Increasing the age limit to 60 to align with retirement age.
• Providing a small subsidy for BPL families to ensure continuity.

Performance Statistics

SDG Linkages

Constitutional Backing

Technology Used

Success Stories

Key Takeaways

• Life cover of ₹2 lakh for death due to any reason.
• Premium of ₹436 per annum (auto-debited).
• Eligibility: 18 to 50 years (risk cover up to 55).

Convergence Schemes

• Pradhan Mantri Jan Dhan Yojana (PMJDY)
• Pradhan Mantri Suraksha Bima Yojana (PMSBY)
• Atal Pension Yojana (APY)

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