Insurance (PMJJBY / PMSBY)

Insurance (PMJJBY / PMSBY)

The Bank offers, PradhanMantriJeevanJyotiBimaYojana (PMJJBY) and PradhanMantriSurakshaBimaYojana (PMSBY) are two government-backed, low-cost insurance schemes in India designed to provide financial security to citizens, particularly from low-income backgrounds. The key difference is that PMJJBY is a life insurance scheme, while PMSBY is an accidental insurance scheme.

PradhanMantriJeevanJyotiBimaYojana (PMJJBY)

  • Type of Insurance: Life insurance.
  • Coverage: Provides a life cover of ₹2 lakh in case of the policyholder's death due to any reason (natural, accidental, or other medical reasons).
  • Annual Premium: ₹436 per annum.
  • Eligibility Age: 18 to 50 years (coverage continues up to age 55 with timely renewal).
  • Enrollment: Available to individual bank or post office account holders who give consent for auto-debit of the premium.
  • Exclusions: No cover for non-accidental death within the first 30 days of initial enrollment.

PradhanMantriSurakshaBimaYojana (PMSBY)

  • Type of Insurance: Accidental insurance.
  • Coverage:
    • ₹2 lakh for accidental death or total permanent disability.
    • ₹1 lakh for permanent partial disability due to an accident.
  • Annual Premium: ₹20 per annum.
  • Eligibility Age: 18 to 70 years.
  • Enrollment: Available to individual bank or post office account holders who give consent for auto-debit of the premium.
  • Exclusions: Death due to suicide is generally not covered, but death from murder or natural calamities (like floods or earthquakes) is covered if classified as an accident.

Key Similarities

  • Government-backed: Both are social security initiatives launched by the Government of India in 2015.
  • Accessibility: Both are offered through participating public and private sector banks and post offices, requiring a savings account.
  • Auto-debit: Premiums are automatically debited from the subscriber's bank account annually.
  • Sum Assured: Both offer a maximum cover of ₹2 lakh.
  • Renewable: Both are one-year schemes, renewable annually.
  • Enrollment: Minimal documentation is required, and no medical examination is needed at the time of enrollment.
  • Dual Enrollment: An individual can enroll in both schemes simultaneously to get comprehensive protection (life and accident cover).