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Sunday, April 18, 2021

Pradhan Mantri Jeevan Jyoti Bima Yojana (PMJJBY) and Pradhan Mantri Suraksha Bima Yojana (PMSBY)

 Pradhanmantri Jeevan Jyoti Bima Yojana and Pradhan Mantri Suraksha Bima Yojana useful Information

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Pradhan Mantri Jeevan Jyoti Bima Yojana (PMJJBY)

Government through the Budget Speech announced three ambitious Social 

Security Schemes pertaining to the Insurance and Pension Sectors, namely Pradhan 

MantriJeevanJyotiBimaYojana (PMJJBY), Pradhan Mantri Suraksha BimaYojana 

(PMSBY)and an the Atal Pension Yojana (APY) to move towards creating a universal 

social security system, targeted especially for the poor and the under-privileged. Hon’ble 

Prime Minister launched PMJJBY and PMSBY schemes nationally in Kolkata on 9th May, 

2015. 


2. The Pradhan MantriJeevanJyotiBimaYojana (PMJJBY) is a one year life insurance 

scheme, renewable from year to year, offering coverage for death due to any reason and 

is available to people in the age group of 18 to 50 years( life cover upto age 55) having a 

savings bank account who give their consent to join and enable auto-debit. The risk 

cover on the lives of the enrolled persons has commenced from 1st June 2015. 

3. Under PMJJBY scheme, life cover of Rs. 2 lakhs is available for a one year period 

stretching from 1st June to 31st May at a premium of Rs.330/- per annum per member and 

is renewable every year. It is offered / administered through LIC and other Indian private 

Life Insurance companies. For enrolment banks have tied up with insurance companies. 

Participating Bank is the Master policy holder. 

4. The assurance on the life of the member shall terminate on any of the following 

events and no benefit will become payable there under: 

1) On attaining age 55 years (age near birth day) subject to annual renewal up to 

that date (entry, however, will not be possible beyond the age of 50 years).

2) Closure of account with the Bank or insufficiency of balance to keep the insurance 

in force.

3) A person can join PMJJBY with one Insurance company with one bank account 

only. 

5. Individuals who exit the scheme at any point may re-join the scheme in future 

years by paying the annual premium and submitting a self-declaration of good health.

Initial enrolment period in the scheme was from 1st May to 31st May ‘2015, which has now 

been extended up to 31st Aug’ 2015, by this date eligible persons can join the scheme

without giving self-certification of good health, even though eligible persons can join the 

scheme on any date by paying the premium for full year. In case of claim the 

nominees/heirs of the insured person have to contact respective bank branch where the 

insured person was having bank account. A death certificate and simple claim form is 

required to submit and the claim amount will be transferred to nominees account. 

*******

Pradhan Mantri Suraksha Bima Yojana (PMSBY)

Government through the Budget Speech 2015 announced three ambitious 

Social Security Schemes pertaining to the Insurance and Pension Sectors, namely 

Pradhan Mantri Jeevan Jyoti Bima Yojana (PMJJBY), Pradhan Mantri Suraksha 

Bima Yojana (PMSBY) and an the Atal Pension Yojana (APY) to move towards 

creating a universal social security system, targeted especially for the poor and 

the under-privileged. Hon’ble Prime Minister will be launched these schemes 

nationally in Kolkata on 9th May, 2015. 


In light of the fact that a large proportion of the population have no accidental 

insurance cover, the Pradhan Mantri Suraksha Bima Yojana (PMJJBY) is aimed at 

covering the uncovered population at an highly affordable premium of just Rs.12 

per year. The Scheme will be available to people in the age group 18 to 70 years 

with a savings bank account who give their consent to join and enable auto-debit 

on or before 31st May for the coverage period 1st June to 31st May on an annual 

renewal basis. 

Under the said scheme, risk coverage available will be Rs. 2 lakh for accidental 

death and permanent total disability and Rs. 1 lakh for permanent partial 

disability, for a one year period stretching from 1st June to 31st May. It is offered by 

Public Sector General Insurance Companies or any other General Insurance 

Company who are willing to offer the product on similar terms with necessary 

approvals and tie up with banks for this purpose. Participating Bank will be the 

Master policy holder on behalf of the participating subscribers. It will be the 

responsibility of the participating bank to recover the appropriate annual 

premium in one instalment, as per the option, from the account holders on or 

before the due date through ‘auto-debit’ process and transfer the amount due to 

the insurance company.

Individuals who exit the scheme at any point may re-join the scheme in future 

years by paying the annual premium, subject to conditions. Further, in order to 

assure a hassle free claim settlement experience for the claimants a simple and 

subscriber friendly administration & claim settlement process has been put in 

place.

To ensure that the benefits of this scheme is brought to every uninsured 

individual, who holds a bank account, wide publicity was given for this social

security measure through electronic media, radio, posters, newspapers 

advertisements etc. Enrollment forms were widely distributed. Highly publicised 

Enrollment camps were conducted by Banks, and Insurance Companies, 

mobilising the entire net work of SLBC Co ordinators, state and district level nodal 

officers, agents and banking correspondents, thereby fully utilising the reach of 

these channels, for attracting large scale enrolment in the scheme.

Between the date of commencement of enrolment on 01st May till the date of 

launch of the scheme by the PM on 9th May, 4.42 Crore subscribers were enrolled 

in the PMJJBY scheme. 

The simplified procedures and the documentary requirements and the procedures 

to be followed in case of a claim under the policy has been widely publicised 

through posters and advertisements at every location and point of contact which 

a claimant is likely to get in touch in case of an accident resulting in a claim under 

the scheme.

An IT enabled, web based system is in the process of being established to keep 

the claimants informed seamlessly about the progress and status of the claim, till 

it’s settlement.

Claim settlement will be made to the bank account of the insured or his nominee

in case of death of the account holder. 

The enrolment drive is continuing without loss of momentum till date. As on 31st

May, that is, on the eve of commencement date of the policy, the number 

enrolled under PMSBY scheme had reached 7.29 Crores. 

Immediately after the close of the first phase of enrolments, banks have started 

the process of auto debit of premium in the accounts of the enrolees and 

remittance of premium to the insurers. So far premium has been debited to 

around 65% of the accounts.

The enrollment is open till 31st August and the drive is continuing. Till 18

th June 

2015 the number of enrolled under PMSBY stands at 7.68 Crore. 

The scheme is expected to serve the goal of financial inclusion by achieving 

penetration of insurance down to the weaker sections of the society, ensuring 

their or their family’s financial security, which otherwise gets pulled to the ground 

in case of any unexpected and unfortunate accident. 

 **************************

Basic concepts and legal regulation

According to Anglo-American property law, a mortgage occurs when an owner (usually of a fee simple interest in realty) pledges his or her interest (right to the property) as security or collateral for a loan. Therefore, a mortgage is an encumbrance  (limitation) on the right to the property just as an easement would be, but because most mortgages occur as a condition for new loan money, the word mortgage has become the generic term for a loan  secured by such real property. As with other types of loans, mortgages have an interest rate and are scheduled to amortize over a set period of time, typically 30 years. All types of real property can be, and usually are, secured with a mortgage and bear an interest rate that is supposed to reflect the lender's risk.


Mortgage lending is the primary mechanism used in many countries to finance private ownership of residential and commercial property (see commercial mortgages). Although the terminology and precise forms will differ from country to country, the basic components tend to be similar:


Property: the physical residence being financed. The exact form of ownership will vary from country to country and may restrict the types of lending that are possible.

Mortgage: the security interest of the lender in the property, which may entail restrictions on the use or disposal of the property. Restrictions may include requirements to purchase home insurance and mortgage insurance, or pay off outstanding debt before selling the property.

Borrower: the person borrowing who either has or is creating an ownership interest in the property.

Lender: any lender, but usually a bank or other financial institution. (In some countries, particularly the United States, Lenders may also be investors who own an interest in the mortgage through a mortgage-backed security. In such a situation, the initial lender is known as the mortgage originator, which then packages and sells the loan to investors. The payments from the borrower are thereafter collected by a loan servicer.[2])

Principal: the original size of the loan, which may or may not include certain other costs; as any principal is repaid, the principal will go down in size.

Interest: a financial charge for use of the lender's money.

Foreclosure or repossession: the possibility that the lender has to foreclose, repossess or seize the property under certain circumstances is essential to a mortgage loan; without this aspect, the loan is arguably no different from any other type of loan.

Completion: legal completion of the mortgage deed, and hence the start of the mortgage.

Redemption: final repayment of the amount outstanding, which may be a "natural redemption" at the end of the scheduled term or a lump sum redemption, typically when the borrower decides to sell the property. A closed mortgage account is said to be "redeemed".

Many other specific characteristics are common to many markets, but the above are the essential features. Governments usually regulate many aspects of mortgage lending, either directly (through legal requirements, for example) or indirectly (through regulation of the participants or the financial markets, such as the banking industry), and often through state intervention (direct lending by the government, direct lending by state-owned banks, or sponsorship of various entities). Other aspects that define a specific mortgage market may be regional, historical, or driven by specific characteristics of the legal or financial system.


Mortgage loans are generally structured as long-term loans, the periodic payments for which are similar to an annuity and calculated according to the time value of money formulae. The most basic arrangement would require a fixed monthly payment over a period of ten to thirty years, depending on local conditions. Over this period the principal component of the loan (the original loan) would be slowly paid down through amortization. In practice, many variants are possible.

Pradhan Mantri Jeevan Jyoti Bima Yojana (PMJJBY) and Pradhan Mantri Suraksha Bima Yojana (PMSBY)

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