Pradhan Mantri Jeevan Jyoti Bima Yojana (PMJJBY)
Pradhan Mantri Jeevan Jyoti Bima Yojana (PMJJBY) is a government-backed renewable one-year life insurance scheme offering a Rs 2 lakh death benefit cover for a premium of Rs 436 per annum (revised from Rs 330 in June 2022), available to individuals aged 18-50 with a savings bank account, enrolled through their bank.
PMJJBY was launched by Prime Minister Narendra Modi on 9 May 2015 alongside PMSBY (accident insurance) and APY (pension) as part of a financial inclusion and social security package targeting the unbanked and underbanked population. The scheme is implemented through life insurance companies empanelled with banks, and the annual premium is auto-debited from the account holder's savings bank account, making renewal seamless and removing the need for physical documentation or agent intermediation.
The scheme covers death from any cause — natural, accidental, illness, or otherwise — and pays a fixed sum assured of Rs 2 lakh to the nominee. The simplicity of the product design (one benefit, one price, no medical examination) was a deliberate choice to maximise reach among low-income populations who might be excluded from regular term insurance due to health underwriting or documentation barriers. The group master policy is held by the bank, with individual account holders as members.
Eligibility is limited to individuals aged 18 to 50 at the time of enrollment; once enrolled, coverage continues until age 55 subject to annual premium payment. The auto-debit mechanism on 31 May each year (or a date specified by the bank) ensures continuity without active renewal by the member. If the bank account balance is insufficient on the auto-debit date and the member wishes to re-enroll later, they may be required to submit a self-certification of good health (declaration of insurability).
PMJJBY's original premium of Rs 330 was revised to Rs 436 per annum from June 2022 following an actuarial review that found the scheme was running at a loss at the original premium given higher-than-expected mortality experience and administrative costs. Even at Rs 436, PMJJBY remains among the lowest-cost life insurance products in India for its benefit quantum. For context, a Rs 2 lakh term insurance from a private insurer for a 35-year-old could cost Rs 400-500 per year, making PMJJBY broadly price-competitive.
As of March 2024, cumulative PMJJBY enrollments crossed 17 crore accounts, with over Rs 14,000 crore paid in death claims since inception — reflecting the scheme's significant impact as a life insurance access channel for India's large informal economy population. The scheme is administered by designated insurance companies (LIC, SBI Life, and others) on behalf of participating banks under a master policy framework governed by the Insurance Regulatory and Development Authority of India (IRDAI).