Pradhan Mantri Jeevan Jyoti Bima Yojana

Pradhan Mantri Jeevan Jyoti Bima Yojana
Country India
Prime Minister Narendra Modi
Launched 9 May 2015 (2015-05-09)

Pradhan Mantri Jeevan Jyoti Bima Yojana is a government-backed Life insurance scheme in India. It was originally mentioned in the 2015 Budget speech by Finance Minister Arun Jaitley in February 2015.[1] It was formally launched by Prime Minister Narendra Modi on 9 May in Kolkata.[2] As of May 2015, only 20% of India's population has any kind of insurance, this scheme aims to increase the number.[3]

Overview

Pradhan Mantri Jeevan Jyoti Bima Yojana is available to people between 18 and 50 years of age with bank accounts. It has an annual premium of ₹330 (US$4.90) excluding service tax, which is above 14% of the premium. The amount will be automatically debited from the account. In case of death due to any cause, the payment to the nominee will be ₹2 lakh (US$3,000).[1][2]

This scheme will be linked to the bank accounts opened under the Pradhan Mantri Jan Dhan Yojana scheme. Most of these account had zero balance initially. The government aims to reduce the number of such zero balance accounts by using this and related schemes.[3]

Criticism

The banks have complained that revenue received will be very low. Some bankers have claimed that amount they are receiving is not sufficient to cover the service costs. Since this is a group insurance scheme, banks have not received instruction regarding cases where excessive claims are in a year. Insurers have also pointed out that no health certificate or information of pre-existing disease is required for joining.[1]

See also

References

  1. 1 2 3 "Jan Suraksha: Social security for masses, pricing woes for insurers". Business Standard. 9 May 2015. Retrieved 9 May 2015.
  2. 1 2 "Banks advertise Pradhan Mantri Bima Yojana ahead of the roll out". Live Mint. 8 May 2015. Retrieved 9 May 2015.
  3. 1 2 "'Jan Suraksha schemes to help eliminate Jan Dhan's zero balance accounts'". Business Standard. 8 May 2015. Retrieved 9 May 2015.
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