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Best Wishes!!

Anand

Tuesday, June 16, 2015

The Pradhan Mantri Jeevan Jyoti Bima Yojana - All Your Questions Answered

In the previous article, we covered the basics of the Pradhan Mantri Jeevan Jyoti Bima Yojana Scheme. As this scheme is quite new, you may have some unanswered questions about the same. The purpose of this article is to help clarify them. If you have any further queries about this scheme, feel free to sound off in the comments section and I will be more than happy to clarify them.

1. What is the nature of the scheme? 

The scheme will be a one year cover Life Insurance Scheme, renewable from year to year, offering protection against death of the policy holder. Death may be due to natural causes or illnesses or due to an accident.

2. What are the benefits under this scheme?

As this is a life insurance product, the only benefit of this scheme is the compensation of Rs. 2 lakhs that will be paid out to the nominee of the life insured in case of death of the policy holder.

3. Can I Pay the Premium as Cash every year?

No, you cannot. The premium can only be paid via Auto-Debit from your savings account that is linked to this scheme. No other mode of payment will be accepted.

4. If I do not join this scheme now, can I join next year or a few years later?

Sure you can. The enrolment period is usually the May of each year and you can enrol any year in the future that you like. Note that the benefits of the scheme will only start after you signup for the same.

5. I have a Life Insurance policy with another Insurance Company. Can I still avail this scheme?

Sure you can. There are no limitations on existing insurance policies that customers may have. This policy will be over and above the ones you already have.

6. I accidentally signed up for this schemes in 2 of my banks. What happens now?

As per the Terms & Conditions of this scheme, an individual can sign up only once for this scheme. In your case, even if something happens to you, you cannot make 2 claims. You can only make One claim. The second premium you have paid will stand forfeited.

7. What are the major exclusions on this policy?

This policy covers death arising out of Natural causes or Accidents or due to illnesses only. Death arising out of Intentional Self Injury or Suicide or Attempted suicide is not covered. Any loss of life that happened while the Insured was under the intoxication of any drugs or liquor is not covered. Similarly, any loss of life that occurred because the policy holder was involved in an illegal activity, is not covered.


8. Can I Nominate someone against my policy?

Sure you can. In fact, you cannot sign up for this Pradhan Mantri Jeevan Jyoti Bima Yojana scheme if you do not have a Nominee assigned to your Savings Account. This person will be the default nominee for your policy. If you want to change the nominee, you can do that too.

9. Does the Insurance Company have the option to cancel the policy?

Yes, they have the power to cancel the policy at any time if:
- The policy holder is found to have enrolled with multiple banks for the same product
- The policy holder is found to have provided incorrect information (Ex: Date of birth or any other personal information)
- The premium was not received on time

10. What are the roles of the Insurance Company and the Bank in administering this policy?

The Insurance Product is provided as a shared partnership between your bank and a partner insurance company. For ex: If you sign up with ICICI bank, the insurance is provided by ICICI Lombard Life Insurance. Similar to this, each bank has a tie-up with an Insurance provider who provides the policy.

The Banks takes up the responsibility of gathering information from account holders, their premium amounts (and any other info – as requested by the insurance company) and shares them with the Insurance company. The Insurance company in turn provides the bank with a Master Policy that covers all the individuals who have paid their premiums on time.

Similarly, when there is a claim, the bank will collect the claim form from the policy holder (or the nominee) and helps settle the claim in conjunction with the insurance provider.

Hope this article helps answer your queries on the Pradhan Mantri Jeevan Jyoti Bima Yojana scheme. If you have any further questions on this topic, do feel free to leave a comment and I will definitely try to answer your queries.

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