PM 330 Rs Insurance Scheme: Protect Your Loved Ones

Life insurance is crucial for ensuring the financial security of your dependents. It helps to ensure that your loved ones continue to live comfortably in your absence. However, due to a lack of awareness and low-income levels, Indian citizens have refrained from obtaining a life insurance policy. This has resulted in a low insurance penetration level in India as compared to its global counterparts.

To provide citizens with a budget-friendly life insurance option, the Indian government has come up with the Pradhan Mantri Jeevan Jyoti Bima Yojana (PMJJBY). It was launched in 2015, with annual premiums starting at just ₹330. It is, therefore, also known as the PM 330 Rs Insurance Scheme. Read on to learn more about the PM Insurance Scheme details.

Features of PM 330 Rs Insurance Scheme

PMJJBY is administered by the Life Corporation of India (LIC). Other life insurance providers can also get on-boarded if willing to offer similar terms. To enrol in the scheme, you can contact your bank or insurance company or visit the official website of PMJJBY.

The following points describe the main features of this scheme:

• It is open to all Indian citizens between the ages of 18 and 50 years who have a savings bank account. The bank account must be linked to the Aadhaar card.
• The policy becomes operable from the 1st of June, or the enrolment date, whichever is later. It is valid for one year and can be renewable annually.
• This scheme was launched with premiums starting at ₹330 per annum. However, w.e.f. June 1, 2022, the premiums were increased to ₹436. The premium can be automatically deducted from your bank account.

Benefits of PM 330 Rs Insurance Scheme

The scheme is an excellent way to provide a safety net to your family in case of any unfortunate eventuality. It offers the following benefits:

• Under this scheme, the policyholder's family receives a sum of ₹2 lakhs in case of the policyholder's death due to any reason, including natural or accidental death. The policy, however, does not provide benefits in case of death (except due to an accident) within 30 days of enrollment.
• Moreover, the tax benefit is available under section 80C of the Income Tax Act for the premium paid under this policy.
• This scheme does not have an investment component and has no maturity benefits.

Achievements of the PM Insurance Scheme

On 9th May 2022, this scheme completed 7 years in operation. The government released facts related to its achievements on this occasion. As on 9th May 2022, a total of 12.76 crore persons have subscribed to this scheme. Claims close to ₹11,522 crore have been disbursed, helping low-income households in times of need. The scheme has been especially useful during the pandemic. The claim settlement process was streamlined further to reduce the pendency. 50% of the claims settled in FY21 were related to COVID-deaths.

Claim Settlement Process under the PM Insurance Scheme

In case of the unfortunate death of the insured, the nominee must go through the following steps to receive the claim amount:

• Visit the bank in which the insured had the savings account from which the premium payments were being made.
• Collect the claim form from the bank authorities.
• Enter relevant details in the claim form and submit it along with the death certificate and discharge receipt.

The bank will then check whether the nominee is eligible to receive the death benefit. The documents will also be verified. Bank will forward the claim form to the insurance company after verification. The insurer will further check the records for the accuracy of the claim. If all information is found genuine,  the claim amount will be released to the nominee.

More details about the scheme can be found on the Jansuraksha website. In addition to this life insurance policy, you must also consider obtaining a health insurance policy. It will supplement the life insurance coverage by meeting expenses related to any medical treatment. You can contact Niva Bupa for comprehensive health plans at an affordable cost. Get in touch with us now to avail superior health coverage for yourself and your loved ones.