Maarg Manthan · Topic 8.2

Pradhan Mantri Jeevan Jyoti Bima Yojana (PMJJBY)

Current Affairs & Government Schemes › Financial Inclusion and Insurance Schemes · Topic 8.2

The Pradhan Mantri Jeevan Jyoti Bima Yojana (PMJJBY) is a one-year renewable term life insurance scheme of the Ministry of Finance, launched on 9 May 2015 from Kolkata. It gives a life cover of Rs 2 lakh to a bank account holder aged 18 to 50 years, for death due to any cause, at a premium of Rs 436 a year, which is auto-debited from the savings account. The cover continues up to age 55 if the person keeps paying. It is offered by Life Insurance Corporation and other life insurers through banks. About 27.84 crore cumulative enrolments were reported by 1 July 2026.

5 min read · UPSC Prelims · Current Affairs & Government Schemes · Financial Inclusion and Insurance Schemes

At a Glance

Ministry Finance
Launched 9 May 2015
Cover Rs 2 lakh, death due to any cause
Premium Rs 436 a year
Age 18 to 50, cover to 55
Exam link UPSC Prelims, Current Affairs and Government Schemes: Financial Inclusion and Insurance Schemes

Where Does It Fit?

This is the second topic of the macro on financial inclusion and insurance. It is the life cover among the three Jan Suraksha schemes, and the next page covers the accident cover. Previous topic: Pradhan Mantri Jan Dhan Yojana (PMJDY). Next topic: Pradhan Mantri Suraksha Bima Yojana (PMSBY).

What Are the Features of PMJJBY?

Feature	Detail
Type	One-year renewable term life insurance, renewed every year from 1 June to 31 May
Launch	9 May 2015, along with the other two Jan Suraksha schemes, by the Prime Minister at Kolkata
Eligibility	Persons aged 18 to 50 years with a savings bank or post office account, who give consent for auto-debit. Cover can continue up to age 55 on renewal
Cover	Rs 2 lakh to the nominee on death from any cause, including illness and accident
Premium	Rs 436 a year since 1 June 2022, earlier Rs 330. It is debited in one instalment from the account around 25 May to 31 May each year
Insurers	Life Insurance Corporation and other life insurance companies that have an agreement with banks
Exclusions	Death by suicide within the first 45 days of cover, and a waiting period of 45 days for new enrolments, except for death by accident

What Do the Numbers and Rules Show?

Enrolments: A Finance Ministry statement of July 2026 reported about 27.84 crore cumulative enrolments. Cumulative means all enrolments since 2015, not the number of live policies
Claims: Together with the accident scheme, the two schemes had settled claims of about Rs 25,160 crore by May 2026, as reported
One account: A person can have only one cover under the scheme, even if he or she has accounts in several banks
Premium revision: The premium rose in 2022 because of claims experience, and the Government said it would review periodically
Link with Jan Dhan: Many holders enrolled through accounts under the Pradhan Mantri Jan Dhan Yojana, as in Pradhan Mantri Jan Dhan Yojana (PMJDY)
Accident sibling: For accident cover at a lower premium, see Pradhan Mantri Suraksha Bima Yojana (PMSBY)

What Else Should You Remember?

Nature of cover: The Pradhan Mantri Jeevan Jyoti Bima Yojana gives pure term insurance, with no maturity benefit and no surrender value
Auto-debit: Continuation depends on enough balance in the account on the date of debit, so many policies lapse because of low balance
Re-entry: A person who leaves the scheme can rejoin on good health, subject to the waiting period
Nominee: The nominee is named in the form and receives the claim by bank transfer
Claims process: The nominee submits the claim to the bank, which sends it to the insurer, and delays often come from paperwork and nominee data
Premium sharing: The premium is shared between the insurer, the bank and the business correspondent for administration
Funding: There is no Government subsidy on the premium, so the scheme is a voluntary, low-cost insurance product
Insurance penetration: India has low life insurance penetration compared with the world average, and the scheme is meant to widen the base
Regulation: The Insurance Regulatory and Development Authority of India regulates the insurers that offer it
Concerns: Low awareness of claim rules, lapses and rejection of claims due to lack of nominee information or a lapsed policy
Next step: The next step is to link all three social security schemes to a single enrolment, as in Jan Suraksha Schemes (Umbrella Social Security Schemes)

Why Does It Matter for the Exam?

Date: 9 May 2015
Cover and premium: Rs 2 lakh and Rs 436 a year
Age: 18 to 50 for entry and cover up to 55
Type: Term life insurance renewable every year
Common errors: Mixing the premium and cover with those of the accident scheme

As an analytical point, a low-premium life cover is useful for poor households only if it does not lapse. Automatic renewal, a clear claim route and awareness drives matter more than a further rise in enrolment numbers.

Why Is This Topic Important?

Numbers Cover and premium
Compare Versus PMSBY
Concept Term insurance

What Came Next?

The next topic covers the accident insurance scheme launched on the same day. Next topic: Pradhan Mantri Suraksha Bima Yojana (PMSBY).

Key People and Terms

PMJJBY Life insurance for bank customers
Term insurance Cover without maturity benefit
Auto-debit Premium deducted automatically
Nominee Person who receives the claim
IRDAI Insurance regulator

Exam Corner

Points to Remember

Launched: 9 May 2015.
Cover: Rs 2 lakh.
Premium: Rs 436 a year.
Age: 18 to 50.
Insurer: LIC and others.

Do Not Confuse With

PMJJBY and PMSBY Life cover for any death versus accident cover only
PMJJBY and Atal Pension Yojana Insurance for death versus pension after 60
PMJJBY and group life insurance of employers Individual voluntary cover versus employer-paid cover

Memory Hook

Two lakh for life, four thirty-six a year, fifty at entry, fifty-five at exit.

Mains Angle

Questions ask whether social insurance reaches the poor. These points give a balanced frame.

Strengths Low premium, bank link and wide reach
Weaknesses Lapses, low awareness and claim delays
Way forward Auto-renewal, nominee updating and simple claims

A Question You May Face

An original practice question, not a past paper question.

“Discuss how the Jan Suraksha schemes, with the example of PMJJBY, can raise insurance penetration among low-income households in India.”

How to Answer

Introduce Scheme, cover and premium.
Strengths Low cost and bank link.
Limits Lapse and claim delays.
Way Auto-renewal and awareness.

GS Relevance

Prelims: launch, cover, premium, age limits, insurer. GS Paper 3: financial inclusion, insurance penetration. GS Paper 2: social security schemes.

Frequently Asked Questions

What is the Pradhan Mantri Jeevan Jyoti Bima Yojana?

PMJJBY is a one-year renewable term life insurance scheme launched on 9 May 2015 by the Ministry of Finance. It gives a cover of Rs 2 lakh on death from any cause to bank account holders aged 18 to 50 years, for a premium of Rs 436 a year, debited automatically from the savings account.

What is the premium of PMJJBY?

The premium is Rs 436 a year since 1 June 2022, raised from Rs 330. It is deducted in one instalment from the savings bank account of the subscriber through auto-debit around the end of May each year. The cover runs from 1 June to 31 May, and the person must renew it every year.

Who can join PMJJBY?

Any person aged 18 to 50 years with a savings bank or post office account can join, if he or she gives consent for auto-debit. The cover can continue up to the age of 55 if the premium is paid each year. A person can hold only one PMJJBY cover.

How is PMJJBY different from PMSBY?

PMJJBY pays Rs 2 lakh on death from any cause, including illness, for a premium of Rs 436 a year. PMSBY pays Rs 2 lakh only for accidental death or total disability, and Rs 1 lakh for partial disability, for a premium of Rs 20 a year, with a higher age limit of 70.

What is the latest status of PMJJBY?

A Finance Ministry statement of July 2026 reported about 27.84 crore cumulative enrolments since launch. Cumulative enrolment counts everyone who has joined at any time, so it is higher than the number of people currently covered, because many do not renew when the account has insufficient balance.

PYQ Practice — Statement Analysis

1 PMJJBY gives a life cover of Rs 2 lakh.

True

The cover is for death from any cause.

2 The entry age for PMJJBY is 18 to 70 years.

False

It is 18 to 50. The age of 70 belongs to PMSBY.

3 PMJJBY was launched on 9 May 2015.