PMJJBY (Pradhan Mantri Jeevan Jyoti Bima Yojana)

What is PMJJBY?

Pradhan Mantri Jeevan Jyoti Bima Yojana (PMJJBY) is a government-designed life insurance scheme that gives ₹2 lakh of term cover against death from any cause. It is a one-year group term policy, renewable every year, offered through banks and post offices to their savings account holders. The premium is debited automatically from the account. Launched on 9 May 2015, it is one of the three Jan Suraksha schemes, alongside PMSBY and the Atal Pension Yojana.

The scheme is run by the Department of Financial Services, Ministry of Finance, and underwritten by LIC and private life insurers that have tie-ups with participating banks.

How PMJJBY works

The premium was raised from ₹330 to ₹436 with effect from 1 June 2022 after claims ran well ahead of premium in earlier years. The rules allow it to be reviewed on annual claims experience.

Mid-year enrolment pays a reduced premium: ₹342 for September to November, ₹228 for December to February and ₹114 for March to May. A person who exits or lets the cover lapse and later rejoins is treated as a new member, and the 30-day lien applies again. A person can be covered through only one account: duplicate premium is forfeited and the claim stays capped at ₹2 lakh.

How the ₹436 is split. Insurer brochures for the scheme show ₹395 going to the insurer as premium, ₹30 as commission to the distributor (business correspondent or agent) for new enrolments, and ₹11 to the bank or post office for administration. Where a customer enrols online on their own, the distributor commission is passed back as a lower premium.

Key numbers

The Ministry of Finance reported that, as of 19 March 2025, PMJJBY had 23.36 crore cumulative enrolments and had paid 9,05,139 claims worth ₹18,102.78 crore, with women forming over half and rural residents about three-quarters of beneficiaries. As on 31 March 2025, IRDAI recorded the scheme being offered by LIC and 13 private life insurers.

What PMJJBY means for distribution

• It is a bank-led, low-cost channel. Enrolment happens at the branch, through net banking and mobile apps, and through about 13 lakh business correspondents. For banks, it is a simple product that supports financial inclusion targets and SLBC campaigns.
• Commission is small but scale is large. ₹30 per new enrolment rewards acquisition, not renewal. Business correspondent networks that enrol many new members during campaign drives earn most of it.
• It counts toward social and rural obligations. Lives covered under government schemes count towards insurers' social sector obligations under the IRDAI (Rural, Social Sector and Motor Third Party Obligations) Regulations, 2024, which gives life insurers a reason to support bank enrolment drives.
• Lapse is silent. Cover ends if the account lacks balance on the debit date. Many families find out only at claim time. A balance reminder in May is the most useful service step.
• Claims need nominee details. Claims are paid to the nominee's account. Banks and agents who check nomination at enrolment avoid delays and disputes later.
• It is a gateway, not a substitute. ₹2 lakh is far below most families' protection need. PMJJBY members are a natural audience for affordable individual term insurance, though the adviser should never imply the scheme cover is enough.