The purpose of this scheme is to help out the poverty stricken people. With one year cover, yearly renewable, the person get life insurance cover for death (due to any reason) through the Insurance scheme. LIC and other Life insurance companies that agree to offer the product on comparative terms with essential approvals and link ups with banks would regulate the Pradhan Mantri Jeevan Jyoti Bima Yojana scheme.
The Pradhan Mantri Jeevan Jyoti Bima Yojana scheme offers Rs.2 lakh on loss of life. The amount of Premium is Rs.330 per head per year. The amount of premium will be taken from the savings bank account of the holder, in one installment (as per the given option) via the facility 'auto debit', prior to or on May 31 of every yearly coverage period.
After May 31, the deferred entries for the planned cover will be accepted with payment of full yearly premium amount and a self-certificate of good health. The premium will be reviewed on the basis of yearly claims experience.
People of the age group of 18 to 50 years, who have the saving accounts in participating banks, will be enlisted to join the Pradhan Mantri Jeevan Jyoti Bima Yojana scheme. One can join through only a single bank account even if the person possesses more than one account in more than one bank.
For the account, Aadhar would be the essential KYC. People, who leave the plan, can join the plan again in future by presenting a statement of sound health.
Individuals of the given age group (18-50years) having the saving accounts in the collaborating banks are eligible to be enrolled in the scheme only when they agree to enable 'auto-debit' feature.
The collaborating banks are the Master policy holders. With the consultation of the collaborating bank, LIC or the other insurance company shall finalize a subscriber friendly and easy to understand claim settlement process and administration.