By enrolling for the two government of India (GOI) schemes – Pradhan Mantri Suraksha Bima Yojana (PMSBY) and Pradhan Mantri Jeevan Jyoti Bima Yojana (PMJJBY ) – one will be able to get triple insurance cover. PMSBY and PMJJBY come with an accidental death cover, coverage for disability and a life cover, respectively. It costs Rs 12 for PMSBY ( for accidental death and disability) and Rs 330 for PMJJBY ( life cover) as a one-time annual premium payment i.e. a total of Rs 342 for covering the three major risks in life.
PMSBY scheme details
If you are wondering what is this PMSBY scheme, here is a low down on its features. Pradhan Mantri Suraksha Bima Yojana (PMSBY) offers insurance against accidental death and disability and is available to all between the age of 18 and 70 years. Only death and disability arising out of accident will be covered and death due to natural reasons such as heart attack is excluded. In the case of death due to accident, the amount of cover is Rs 2 lakh while for partial disability arising out of an accident, the claim amount is Rs 1 lakh.
PMJJBY scheme details
Pradhan Mantri Jeevan Jyoti Bima Yojana (PMJJBY) is the other GOI scheme for social benefit. PMJJBY which is available to anyone between the age of 18 and 50 years provides a fixed life cover of Rs 2 lakh. The benefit of PMJJBY is that it provides life cover of the nature of the term insurance plan. PMJJBY covers death due to any reason including heart attack or accident or due to any other cause.
To enroll for PMSBY or PMJJBY or both schemes together, the one-time payment has to be made automatically from one’s bank account. The coverage for both the schemes is for 1 year starting from June 1 till May 31 next year and they have to be renewed each year by paying the required premium.
PMJJBY proportionate premium
For joining PMJJBY in the middle of the year, the premium amount will be decided on the basis of application date and not as per the date of debit from the account. The proportionate premium structure is:
June, July and August – Annual Premium of Rs 330 is payable
September, October and November – Premium of Rs 258 is payable
December, January and February – Premium of Rs 172 is payable
March, April and May – Premium of Rs 86 is payable.
One can join any of these two government schemes by filling the PMJJBY form or PMSBY form available at any bank branch. For PMJJBY, one can approach Life Insurance Corporation or any other insurer as well. Some banks have also made arrangements to enroll online or through mobile banking. If the balance is insufficient or the account has become inoperative, the coverage in both the schemes will cease. One can, however, re-start the schemes later on.
The total coverage is less in these two schemes but may help one to increase total coverage overall. Ideally, one should have a life cover of at least seven times one’s annual take-home income.