” Pradhan Mantri Jan Dhan Yojana ” scheme was launched on 15th August, 2014 by our honorable Prime Minister. PMJDY is a popular Financial Inclusion scheme. As of January 2015, it is believed that around 10 crore bank accounts are opened under this scheme. The main aim of the scheme is to encourage and bring more number of households into the banking system.
The main features of the Jan Dhan scheme are :
- No minimum balance is required
- Account holder will get Rupay debit card
- Free Accident Insurance cover of Rs 1 Lakh
When the scheme was officially launched on 28th August, one more feature was included into the scheme. This feature is “Rs 30,000 will be provided as life insurance cover for all the first time bank account holders” who open the accounts under Jan Dhan Yojana Scheme (PMJDY).
The Life insurance Corporation of India (LIC) will provide the life cover. LIC has set up a separate fund to service the claims under this scheme. The premium to be charged initially under the scheme is subsidised from the Social Security Fund. In case of rural landless household, the remaining 50 per cent premium is borne by the state government or Union territory; in case of other occupational group, the remaining 50 per cent premium is borne by the nodal agency and / or member and / or state government / Union territory.
Life Cover under Pradhan Mantri Jan Dhan Yojana
Following are the features and eligibility conditions to get life insurance coverage under PMJDY Scheme :
- The eligible Age group is 18 completed to 59 (Nearer Birth Day)
- Person opening a Bank account for the first time ( with RuPay Card ) during the period from 15-08-14 to 26-01-15 is eligible to get life cover. This period can be extended by the Govt.,
- The Life cover of Rs 30,000 will be available from 26th January, 2015
- Only Head of the family is covered under this Risk Cover Scheme
In case the head of family is 60 years or more of age, the second earning person of the family in the above mentioned age group will be covered
In case of joint Account-holders under PMJDY, the first account holder (primary account holder) will be provided Life Insurance cover
- The Bank account holder’s account must have Ru-pay debit card linked to his/her Aadhaar number.
For the coverage to be effective the RuPay Card should be valid and in force
Only one person in the family will be covered in the Bima Scheme and in case of the person having multiple cards / accounts the benefit will be allowed only under one card i.e. one person per family will get a single cover of Rs.30,000.
The life cover of Rs 30,000/- under the scheme will be initially for a period of 5 years, i.e. till the close of financial year 2019-20. Thereafter, the scheme will be reviewed and terms and condition of its continuation, including the issue of future payment of premium by the insured thereafter, would be suitably determined.
- Employees (in service or retired) of central and state governments, Public Sector undertakings, Public sector Banks, are not eligible for this scheme
Persons whose income is taxable under I.T. Act 1961 or are filing the yearly Income Tax return or in whose case TDS is being deducted from the income, and their families are also not eligible
- Government has started a scheme called “Aam Admi Bima Yojana.” The individuals covered under this scheme will get Rs 30000 as life cover and Rs70,000 as accident cover. So, Persons/families who are included in AABY are not eligible for PMJDY life cover.
Death Benefit under PMJDY Scheme:The nominee of the account holder will be entitled to receive death benefit of Rs.30,000/- in case of the unfortunate death of the account holder on account of any cause.
- The nominee of the bank account holder has to intimate the bank (where the PMJDY saving account is active) about the death of the account-holder (the insured)
- The nominee of the insured has to submit the following documents
Attested copy of the Death Certificate of the deceased member.
Photocopy of Aadhaar card of the deceased person
Verification of the validity and in force status of the RuPay Card
Photocopy of BPL or Ration card
- Completed claim form-cum-discharge receipt form should be submitted. Part A of claim form should be filled by the claimant and Part B of the claim form should be filled by authorized bank/LIC official
In the absence of nomination or if the nominee pre-deceases the insured member or if the nominee is not spouse or child or parent then the Legal Heirs of the Account holder should submit Indemnity Bond.
The concerned Branch of the Bank where the PMJDY saving account was initially opened will then lodge the claim with LIC.
The Death claim benefit of Rs. 30,000/- will be settled (after verification) by the designated Pension & Group Scheme (P&GS) Office of LIC.
- The insured member attaining the age 60, or
- The insured member ceasing to satisfy one or more of the eligibility conditions. or
- Discontinuance of the Scheme