PMJJBY and PMSBY insurance Schemes

Pradhan Mantri Jeevan Jyoti Bima Yojana (PMJJBY) Scheme, which is administered by LIC, offers life insurance cover worth Rs 2 lakhs to all the bank SB account holders between 18 to 50 years of age at a premium of Rs 330 per annum.

Settlement of Claim
The nominee has to approach the Bank where the policyholder was maintaining SB account through which he/she was covered under PMJJBY with duly completed Claim Form, Discharge Receipt, death certificate along with a photocopy of the canceled cheque of the nominee’s bank account. In case the Nominee is a minor, the Guardian / Appointee may fill the claim form and discharge receipt. The maximum time limit for Insurance companies to approve the claim and disburse money is thirty days from the receipt of the claim from the Bank.

The Rules for the above scheme has been modified with effect from June 1, 2016. In the revised rules a lien clause is incorporated whereby claims for deaths that occur during the first 45 days from the date of enrolment will not be paid. Therefore, with effect from June 1, 2016, the risk cover under PMJJBY will commence only after the completion of 45 days from the date of enrolment into the scheme by the member. However, it is clarified by the Government of India that the deaths due to accidents will be exempt from the Lien Clause.

PMSBY

PMSBY is an acronym to Personal Accident Insurance Scheme. Under this scheme,a person of 18 to 70 is eligible for getting a policy. The premium for PMSBY is just Rs.12 per year. The insurer must have an SB account in a bank and should give a consent letter to auto-debit his/her account every year. The amount is deducted from member’s SB account with an auto-debit facility in the month of June every year. If the insured dies due to an accident, the nominee of the insured will get Rs 2 Lakh as a death benefit. If there is any total disability due to accident, the insured will get Rs 2 Lakh, and for partial disability, the risk cover is limited to Rs 1 Lakh.

Settlement of claim
On the occurrence of the accident, the insured or the nominee (in case of death of the insured) shall contact the bank branch where the insured person was maintaining Savings Bank Account from which the premium for the policy was auto debited and submit a duly completed claim form. The claim form may be obtained from the bank or insurance company branches, designated websites, hospitals, insurance agents, etc. The duly filled in claim form shall be submitted to the bank. The bank shall forward the completed form to the Insurance company within 30 days and the maximum time limit for Insurance Company to approve the claim and disburse money thereafter is thirty days.

In the case of deceased who has not named his/, her nominee the admissible claim amount shall be paid to the legal heirs of the insured on the production of the Succession Certificate/ Legal Heir certificate from the Competent Court/ authority.

Accidents, any death or disability (as defined under PMSBY) resulting from natural calamities is covered under PMSBY. However, death due to suicide is not covered. Death due to murder is covered.  Loss of an eyesight or loss of use of one hand or foot which is not irrecoverable loss is not considered as a partial disability.