PMJJBY not to settle claims for first 45 days

KOLKATA: Risk cover under Pradhan Mantri Jeevan Jyoti Bima Yojana or PMJJBY in short will be applicable only after the first 45 days of enrolment, according to a new directive.

The government has put a lien clause to this effect from June 1, awarding insurance companies offering risk cover under PMJJBY some breather.

In other words, insurers do not have to settle claims during the first 45 days from the date of enrolment.

However, deaths due to accidents will be exempt from the lien clause, Reserve Bank of India said in a note.

The scheme offers Rs 2 lakh cover at a mere Rs 330 premium every year. Bank account holders in the age 18 to 50 years are eligible to buy this product. The life risk cover will get terminated after 55 years.

Insurance plans such as PMJJBY and Pradhan Mantri Suraksha Bima Yojana (PMSBY) are aimed at bringing the unorganised sector and economically weaker population under risk cover

PMSBY offers a renewable one year accidental death cum disability cover of Rs 2 lakh at Rs 12 premium every year. The insured will get Rs 1 lakh in case of partial permanent disability.