The two social security schemes – Pradhan Mantri Suraksha Bima Yojana (PMSBY) and Pradhan Mantri Jeevan Jyoti Bima Yojana (PMJJBY) which were launched recently under Jan Suraksha Yojana has been overwhelming. The number of accounts opened under both these schemes has been over 5 crore. Although both these schemes are different yet simple to understand, there are few differences and similarities as displayed in the table below:
|Features||Pradhan Mantri Suraksha Bima Yojana (PMSBY)||Pradhan Mantri Jeevan Jyoti Bima Yojana (PMJJBY)
|Insurance cover offered for||Accidental death/disability/accidental injury||Death due to any reason|
|Annual Premium||Rs. 12||Rs. 330|
|Sum Assured||1) Rs. 2,00,000 (for accidental death)|
2) Rs. 1,00,000 (for partial disability)
|Rs. 2,00,000 for death due to any reason (natural/accidental)|
|Eligibility||Savings bank account is must||Savings bank account is must|
|Insurance period||01st June - 31st May (Every year)||01st June - 31st May (Every year)|
|Can one person opt for same policy more than once in same/different banks||No||No|
|Eligibility - Age limit||18-70 Years||18-50 Years|
|Till what age premium has to be paid||70 years||50 years. But you can continue till 55 years, provided premium is paid every year|
|Payment Mode||Auto debit from the bank account||Auto debit from the bank account|
|From where to buy the insurance||Public and private banks wherever you hold savings bank account||Public and private banks wherever you hold savings bank account|
|Documents required||None. You just need to fill application form once||None. You just need to fill application form once|
|Can anyone buy this policy||Yes. Anyone can buy irrespective of the income earned||Yes. Anyone can buy irrespective of the income earned|
|Is money refunded if |
claim is not made
|Is the premium paid tax free||Yes||Yes|
|Who will receive the money in case of policy holder's death||Nominee||Nominee|
|If you do not premium, will the policy lapse||No||No|
|Can you rejoin the scheme if you leave the scheme||Yes||Yes|
As you can see with low premium comes low claim amount. But still everyone should buy these policies especially poor people; who cannot afford high premiums charged by other insurance companies in the market. In case of your absence, your family member will can benefit from this money, although small.
In India, above 70% people do not have any insurance policy. Considering the situation, these two schemes were launched.
Rs. 2 Lakh: In an event of death or total irrevocable loss of one or both the eyes/hand/feet
Rs. 1 Lakh: In an event of total irrevocable loss of sight of any one eye or loss of use of one hand/foot.
- Applicant should be the savings account holder of the concerned bank.
- Age should be between 18 – 70 years
- Consent for auto-debit facility is must for renewal.