This Program was launched by the Honorable Prime Minister of India, Mr. Narendra Modi in 2015

Due to any sudden predicament or accident, if a person loses his life, they can always ensure that their family is able to maintain the standards of their lifestyle, by purchasing an insurance.

Somebody whose job comes under the ESI and PF scheme might not deem it important because quite a bit of their problem is solved but even if that is the case, an additional security can prove of no harm. One can make this security possible at the cheapest of price prices if they avail the PMJJBY. 


As of 2015, only 20% of Indians had purchased an insurance policy. This program was launched by the Hon’ble Prime Minister of India, Mr. Narendra Modi in 2015, with the annual budget announced by the then Finance Minister, Late Mr. Arun Jaitley. It was a scheme launched to promote the purchase of insurance policies in every household of the country. The scheme promised that if the policy holder saves one rupee per day for 5 years, they can get Rs. 2,00,000 as life insurance at the termination of the plan. 

Key Points to be Considered/Key Features of the Scheme

  • The yearly premium that needs to be deposited under this insurance plan is Rs. 330/- and the life insurance received by the policy holder is worth Rs. 2 lakhs.
  • The risk cover of the benefit after the death of the policy holder goes to the nominee.
  • The policy does not have a maturity benefit, that is, in case the policy holder deposits premiums every year for 10 to 15 years, it does not imply that the policy holder gets a maturity amount. 
  • However, at the end of 5 years Rs. 2,00,000 is given to the beneficiary. 

Eligibility Criteria

  • Any Indian citizen from the age of 18 to 50 years can apply for the policy.
  • The policy holder should have a bank account that can be used to avail the policy.
  • The eligibility is up to 55 years of age, that is, the policy holder can join till the age of 50 but the coverage period will end at 55. 

Payment Mode

  • Premium will be deducted automatically from the bank account that has been registered by the policy holder to the insurance company. 
  • If the policy holder wants to opt out of the program at any point they can go to the nearest bank and do so.

Coverage Period

The coverage period of the policy is term 1st of June to 31st of May, the ideal tenure being one year.
The first 45 days are considered as the enrolment period and the benefits begin after the end of 45 days.
Even if the policy holder joins in the middle of the session, that is, in the month of August or September the premium amount remains the same and the coverage period ends on 31st of May, after which it is auto-renewed. 

Where Can You Get the Insurance Policy

Primarily the Life Insurance Corporation of India (LIC) handles the operation of the scheme. However, one can get the insurance from ICICI Lombard, HDFC Life, SBI Life, and others who are the major insurance companies in the country as well. 
The insurance can be procured from banks insurance agents and insurance companies directly as well. Nevertheless, the simplest procedure would be to link the insurance with your savings account. 


There are three ways to purchase the policy:

  1. First being, filling an offline application form which asks for simple details like your name, Aadhar number and details of your nominee. Therefore, the only document required is an Aadhar card. The bank can be received from the nearest bank branches for or Insurance company branches.
  2. One can also enrol in the scheme through the bank website using net banking which is also an available option on the mobile application. 
  3. The third option available is to register through SMS service. For example, if you want to purchase the policy from HDFC Life, all you need to do is send an SMS saying: PMJJBY YES to 5676712. Different banks will have different numbers. 

Claim Process

  1. In the event of accidental death of the policy holder, the nominee needs to collect the claim form and a discharge receipt from the insurance company in order to claim the insurance amount. 
  2. Once the form is filled and submitted by the nominee of the policy holder, the bank is responsible for depositing the money in the bank account of the policy holder within a period of 30 days. 
  3. The documents required to submit the claim form and discharge receipt are as follows:
  • Death certificate of the policy holder;
  • Aadhar of the policy holder;
  • Bank details of the policy holder.

Purposes Achieved by the Scheme

  1. Social security;
  2. Encourages insurance among Indian citizens; and
  3. To activate the Jan Dhan accounts under the Pradhan Mantri Jan Dhan Yojana (PMJDY Scheme).


  1. The primary benefit of the scheme lies in the fact that it requires a nominal premium amount for the year. Rs. 330/- for an entire year can be saved without much effort by most families. 
  2. The uncertainty of life presses the need for financial and social security. Indians are unaware and many of them cannot afford to deposit premiums as life insurance. 
  3. A number of untimely deaths happen in the families of the economically weaker sections, due to lack of medical facilities, lack of hygiene and lack of health awareness amongst families which belong to that strata of the society. Therefore, an insurance policy with a low premium can prove of great benefit to them in the event of the death of the breadwinner of the family. 
  4. In case the policy holder lives beyond the coverage of the insurance, the purchase acts as an investment which is an added leverage. 
  5. It goes without saying that an insurance policy comprising all these benefits, reduces stress during troubled times and gives mental peace to the purchaser. 

The PMJJBY Scheme has made a significant impact in this regard and the reports up to 31 March, 2019 show that 5.92 crore people have already enrolled for this scheme, out of which, 1,35,212 claims have been disbursed amounting to a total of Rs. 2,704.24 crore.

Edited by Shraddha Jha

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