Essay on Pradhan Mantri Jeevan Jyoti Bima Yojana in English for Student & Children


Prime Minister Narendra Modi launched three schemes – Pradhan Mantri Jeevan Jyoti Bima Yojana, Pradhan Mantri Suraksha Bima Yojana & Atal Pension Yojana on May 9, 2015, with the aim of providing social security to the common man.

Out of these, the Prime Minister Jeevan Jyoti Bima Yojana is in effect from June 1, 2015. It is a useful insurance scheme that can be renewed. Which provides adequate social security to the citizens on payment of a premium of only Rs 330 per year. Paying its premium is also very convenient.

The premium for this insurance is auto-debited directly from the customer’s bank account. PMJJBY is a progressive step towards increasing insurance awareness and access to insurance in the country.


Through PMJJBY, the central government has set a target to bring all sections of the society under insurance protection. At present, 80-90 percent of the total population of the country does not have any type of insurance.

Under this scheme life insurance of 2 lakh rupees for one year which is payable on the death of the customer due to any reason. Savings account holders in the age group of 18 to 50 years can avail of the benefits of life insurance that can be renewed every year by paying a premium of Rs 330 per customer per year.

A person can avail of PMJJBY even if he has more than one savings account in any one or different banks, but in that case, he can join this scheme with only one savings account.


Under this Pradhan Mantri Jeevan Jyoti Bima scheme, an amount of 2 lakh rupees is payable to the person nominated by the member of the scheme in case of death of a sick person due to any reason.

There is no other condition of any kind to avail the benefit of death in the event of this scheme if all the premiums and service tax payable related to this insurance has already been paid in full.

It is to be noted here that neither any maturity benefit is payable in this plan nor any benefit is payable by surrendering the policy of this insurance as it is a term life insurance plan.

The process to activate the plan

Customers who can apply for this scheme are sent SMS, on which they have to give their response by writing PMJJBY <space> ‘Y’ in English. If the customer sends PMJJBY <space> ‘Y’, he gets involved in the scheme and is sent as another SMS acknowledgment to indicate that he has been included in the scheme.

The scheme relies on the banking system for its smooth operation. The name of the nominee / his relationship with the applicant and the date of birth etc. details are taken by the information available in the savings account itself. The application for PMJJBY is not processed in the absence of information about the nominee in the bank’s records. The annual premium for the policy is paid through the auto-debit mode from the savings account and the insurance cover of the member of the scheme expires if the premium is not paid for any reason.

Customers can click on the ‘Insurance’ tab after logging in through Net Banking. And after that, they have to choose PMJJBY & also they have to choose the account through which the premium is to be paid. Also, they can retain the nominee of the existing savings account post or nominate a new person at will.

They will also have to declare that they are in good health and for this, they will also have to submit a self-signed certificate. After this process is complete, the system will display complete information about PMJJBY. Then after clicking on the ‘confirm’ button, they will get a receipt for submission of the form in the form of a unique reference number that can be downloaded and kept for future reference.


PMJJBY can be renewed from year to year. The member of this scheme has to pay a premium of Rs 330 annually which means he has to pay less than one rupee per day and deposit 27.5 rupees monthly. This amount is deducted from the account holder’s savings bank account through the ‘Auto Debit’ facility in one installment.

Therefore, it is necessary for the customers to deposit the required amount in their respective bank account and renew the policy every year. The annual installment under the scheme is paid before 31 May during each annual coverage period.

If the annual installment cannot be deposited before this date, the policy can be renewed by making a lump sum payment of the entire annual premium along with a self-declaration of good health. For its convenience, the members of the scheme can issue the mandate to be auto-debited every year during the period of this scheme.

Eligibility Conditions

All citizens of India, who are between 18 years and 50 years of age, can apply for this scheme and have an account in any bank suggested for this scheme & have a minimum amount of money that can be deposited in this scheme.

The premium should be sufficient to pay Rs 330. Also, the applicant should have an Aadhaar card which will be considered as the main KYC of the candidate for that bank account.

It is necessary for the applicant to provide the name of the nominee and the details of the relationship with him. Apart from this, the applicant will have to submit the duly filled self-declaration form of his good health.

Death claim

On the death of a member of the scheme, the person nominated by the candidate of the account will be entitled to get a death claim amount of Rs 2 lakh under this scheme.

Master Policyholder for this scheme

This low-cost life insurance plan is administered and offered through the cooperation of the life insurance corporation and other life insurance companies participating banks in the scheme which are the master policyholders. LIC / selected insurance company, in consultation with the participating bank, will implement a simple and customer friendly administration and claim settlement.

The insurance company will implement a simple and customer friendly administration and claims settlement process for consultation with the bank to participate. In fact, for the implementation of this scheme for its customers, the decision to involve any life insurance company with the participating banks will have to be made at their own discretion.

They will bear the responsibility of recovering the annual premium in one installment from the account holders through an ‘auto-debit’ process immediately before the due date. They will send the insurance companies every year as soon as the premium is received.

Termination of insurance

On completion of the account holder’s age of 55 years. If he closes his bank account or his bank account does not have enough money to be deposited to keep the insurance scheme running.

If he has received cover through more than one account, the cover will be limited to Rs 2 lakh and the premium will be forfeited.


With a life insurance cover of Rs 2 lakh at a low annual premium of just Rs 330 per year, PMJJBY is a major step towards the inclusion of a large population of India under social security cover. The objective of this scheme is to provide maximum benefits to all citizens of the country. It is a boon for millions of poor who do not have life insurance.