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PMJJBY Claim Settlement

Pradhan Mantri Jeevan Jyoti Bima Yojana (PMJJBY) was introduced on 2015 budget by Finance Minister Arun Jaitley. This scheme is a renewable insurance scheme which offers coverage of death due to any reason. As the cover of PMJJY is for death only, the benefits will be provided to the nominee only.

Pradhan Mantri Jeevan Jyoti Bima Yojana (PMJJBY) offers death coverage of Rs. 2, 00,000 (2 lakh) which will be offered to the nominee of the insured person.

Risk coverage under the scheme is normally for 1 year, which can also be renewed after 1 year.  If somebody wishes to opt for a longer duration, their savings account will be auto debited by the bank every year. Also, the risk cover will be applicable only after the first 45 days of enrollment. Hence, the subscribers are not required to settle the claims during the first 45 days from the date of enrollment. However, deaths due to accidents will be exempt from the clause and will still be paid.

This scheme is available for people in the age group of 18 to 50 years where they are required to pay the premium of Rs. 330 per year or less than 1 rupee per day.

If you wish to enrol yourself in Pradhan Mantri Jeevan Jyoti Bima Yojana (PMJJBY) you can do that with the help of an insurance company.  Public life insurance companies like Life Insurance Corporation of India (LIC) or other general insurance providers are offering this scheme by collaborating with banks. In fact, participating banks will choose insurance companies in order to provide the scheme to the subscribers.

Insurance Claim Settlement Procedure under PMJJBY

The insurance company through you have invested in this scheme will settle the death claim. Read below to know the claim settlement process under PMJJBY.

Steps to be taken by the Nominee

  • If you are the nominee, you will have to pay a visit to the designated bank where the member had their savings bank account through which he / she was covered underthe Also, the nominee will have to provide the death certificate of the member.
  • Collect the claim form and discharge receipt from the bank or any other designated source such as hospital, insurance company branch etc. You can also collect the claim form from designated website.
  • Fill the claim form properly and submit to the bank where the member had their savings bank account through which they were covered underthe You will also have to provide the following documents such as discharge receipt, death certificate along with a photocopy of the cancelled cheque of the nominee’s bank account (if available) or the bank account details.


Steps to be taken by the Bank

  • Once the bank gets to know about the death of the insurer, they should check whether the cover for the said member was in force on the date of his death.
  • The bank is also required to verify the claim settlement form filled by the nominee of the insurer and to fill in the relevant columns of the claim form.
  • Banks are suppose to forward the following documents to the insurance companies for further procedure:
    • Claim form duly completed
    • Death Certificate
    • Discharge Receipt
    • Photocopy of cancelled cheque of the nominee (if available)
  • The banks are required to forward the above mentioned documents within 30 days of the submission of the claim.

Steps to be taken by the Insurance Company

  • After receiving the claim form from the bank, the insurance company is required to verify the claim form and all the attached documents
  • In case there is some dispute in the form or on the documents, they should send it back to the bank. And if the claim is acceptable the designated officer should cross check if the insurer is and no death claim settlement has been effected for the member through any other account
  • If the coverage is in force, payment should be released to the nominee’s bank account. And a notification will be sent to the nominee intimating the same with a copy marked to the bank.
  • Once the insurance company receives the claim form from the bank, they have 30 days to disburse the insured amount.

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