PM Insurance & Pension Schemes – A Ready Referencer

PM Insurance & Pension Schemes 
A Ready Referencer

Death is the one term which makes everyone scary and the same fear plays the vital role in availing the insurance on our lives. Death is certain to happen, how many of us think about what happens to our family after our death? The insurance provides the solution for this question. It is obvious that the human life can’t be replaced with the monetary returns, but still, running a family after losing someone in our family is not an easy thing. These monetary returns in the form of Insurance claims will be handy at those times. The below quote holds good to explain about insurance in a nut-shell:

“It's not for you - it's for those you care most about!”

I am sure almost all of you are aware about the recently launched Prime Minster’s Insurance & Pension schemes.  I am just trying to explain the procedures to apply for these insurance & pension schemes in a nut-shell. I will be posting about three different schemes launched by the Government:

1.  Pradhan Mantri Jeevan Jyoti Bima Yojana (LIFE INSURANCE)

2.  Pradan Mantri Suraksha Bima Yojana (ACCIDENT INSURANCE) &

3. Atal Pension Yojana (PENSION SCHEME)

I have tried to explain the details of these schemes in the form of Infographic, so that it will be easier for the people to understand. 

1. Pradhan Mantri Jeevan Jyoti Bima Yojana (LIFE INSURANCE)

The basic information is presented in the form of Infographic below. 

How to Apply?

Applying to this scheme is just a simple task. No need for ID proof, Address Proof, DOB Proof documents. Some banks offer online application, whereas others  offers offline application.

Off-Line Application (By Submitting Application form in Bank)

1. Download the form from the below link: http://www.jansuraksha.gov.in/Files/PMJJBY/English/ApplicationForm.pdf#zoom=250

2. Fill in the form with the necessary details. Since we already have the account with our banker, this form has very minimal entries to be filled in. It wont take more than 15 minutes to fill this form.

3. Don’t forget to fill the Aadhar Number if you have one.

4. No need to have / affix Photograph in the application form.

5. Submit the duly filled in application form to your banker. They will take care of the rest. Within a week’s time the scheme will be activated.

On-Line Application:

As far I know,  only 4 banks are offering the Online Application for this scheme and links are given below:

1. ICICI Bank:

Service Requests > Bank Accounts > Enroll for Pradhan Mantri Jeevan Jyoti Bima Yojana

SMS PMJJY <Nominee name> Y to 5676766 from your registered mobile number.

2. HDFC Bank:

NetBanking > Click on the ‘Insurance’ tab > Select Scheme > Select the SB A/C

3. Kotak Mahindra Bank:

Link: https://www.kotak.com/j1001mp/netapp/MainPage.jsp

SMS JYOTI <nominee name> to 5676788

4. SBI:

Login to NetBanking > My Accounts > Social Security Schemes > Select the Scheme & Acc no

How and When to Claim?

The claim can be made only if the member / subscriber died before 55 years of age after paying the required premiums. The claim should be initiated by the nominee whose name is mentioned in the application form.  The procedure is explained in the form of Infographic below: 

Claim form can be downloaded from the below link:

http://www.jansuraksha.gov.in/Files/PMJJBY/English/ClaimForm.pdf

Key Points to note:

1. This is a one year cover renewable from year to year

2. Cover for the members enrolled after 31^st May 2015 will be the prospective period from the date when they enroll to 31^st May 2016. But full premium to be paid.

3. The cover is for the period is till the insured attains 55 years of age. No maturity benefit -  if the contingency (Death) happens before 55 years of age, the claim will be settled, else no return.

4. It should be operated through savings bank a/c only. If the members have more than one savings a/c, he can choose any one savings a/c of his choice.  One policy for one member. 

2.  Pradan Mantri Suraksha Bima Yojana (ACCIDENT INSURANCE)

The basic information is presented in the form of Infographic below. 

How to Apply?

As similar to Life Insurance scheme (Pradan Mantri Jeevan Jyoti Bima Yohana), we can apply online or offline.

Off-Line Application (By Submitting Application form in Bank)

1..  Download the form from the below link: http://www.jansuraksha.gov.in/Files/PMSBY/English/ApplicationForm.pdf#zoom=250

2. Fill in the form with the necessary details. Since we already have the account with our banker, this form has very minimal entries to be filled in. It wont take more than 15 minutes to fill this form.

3. Don’t forget to fill the Aadhar Number if you have one.

4. No need to have / affix Photograph in the application form.

5. Submit the duly filled in application form to your banker. They will take care of the rest. Within a week’s time the scheme will be activated.

On-Line Application:

As far I know,  only 4 banks are offering the Online Application for this scheme and links are given below:

1. ICICI Bank:

Service Requests > Bank Accounts > Enroll for Pradhan Mantri Suraksha Bima Yojana

SMS PMSBY <Nominee name> Y to 5676766 from your registered mobile number*.

2. HDFC Bank:

NetBanking > Click on the ‘Insurance’ tab > Select Scheme > Select the SB A/C

3. Kotak Mahindra Bank:

Link: https://www.kotak.com/j1001mp/netapp/MainPage.jsp

SMS SURAKSHA <nominee name> to 5676788

4. SBI:

Login to NetBanking > My Accounts > Social Security Schemes > Select the Scheme & Acc no

How and When to Claim?

The claim can be made only if the member / subscriber died or disabled due to accident before his / her 70 years of age after paying the required premiums.  Keep the below mentioned details before hand while applying for the claim:

1. Day, Date & Time of Accident

2. Place and Exact location where the accident took place

3. Nature of Accident

4. Details of Injury / Exact cause of death

5. Name address & contact details of Hospital / the attending doctor(s)

6. Possible time where the medical officer of the company can visit injured

7. FIR / Death certificate should be obtained

The procedure is explained in the form of Infographic below: 

Claim form can be downloaded from the below link:

http://www.jansuraksha.gov.in/Files/PMSBY/English/ClaimForm.pdf

Key Points to note:

1. This is a one year cover renewable from year to year

2. Cover for the members enrolled after 31^st May 2015 will be the prospective period from the date when they enroll to 31^st May 2016. But full premium to be paid.

3. The cover is for the period is till the insured attains 70 years of age. No maturity benefit -  if the contingency (Death / disability due to accident) happens before 70 years of age, the claim will be settled, else no return.

4. It should be operated through savings bank a/c only. If the members have more than one savings a/c, he can choose any one savings a/c of his choice.  One policy for one member.

3. Atal Pension Yojana (PENSION SCHEME)

The basic information is presented in the form of Infographic below. 

Indicative Atal Pension Yojana Monthly Contribution Chart (Based on Age):

1. Indicative Contribution Chart for Monthly Pension of `1,000

Age of Entry	Indicative Monthly Contribution (`)		Age of Entry	Indicative Monthly Contribution (`)
18	42		31	126
19	46		32	138
20	50		33	151
21	54		34	165
22	59		35	181
23	64		36	198
24	70		37	218
25	76		38	240
26	82		39	264
27	90		40	291
28	97
29	106
30	116

2. Indicative Contribution Chart for Monthly Pension of `2,000

Age of Entry	Indicative Monthly Contribution (`)		Age of Entry	Indicative Monthly Contribution (`)
18	84		31	252
19	92		32	276
20	100		33	302
21	108		34	330
22	117		35	362
23	127		36	396
24	139		37	436
25	151		38	480
26	164		39	528
27	178		40	582
28	194
29	212
30	231

3. Indicative Contribution Chart for Monthly Pension of `3,000

Age of Entry	Indicative Monthly Contribution (`)		Age of Entry	Indicative Monthly Contribution (`)
18	126		31	379
19	138		32	414
20	150		33	453
21	162		34	495
22	177		35	543
23	192		36	594
24	208		37	654
25	226		38	720
26	246		39	792
27	268		40	873
28	292
29	318
30	347

4. Indicative Contribution Chart for Monthly Pension of `4,000

Age of Entry	Indicative Monthly Contribution (`)		Age of Entry	Indicative Monthly Contribution (`)
18	168		30	462
19	183		31	504
20	198		32	551
21	215		33	602
22	234		34	659
23	254		35	722
24	277		36	792
25	301		37	870
26	327		38	957
27	356		39	1054
28	388		40	1164
29	423

5. Indicative Contribution Chart for Monthly Pension of `5,000

Age of Entry	Indicative Monthly Contribution (`)		Age of Entry	Indicative Monthly Contribution (`)
18	210		31	630
19	228		32	689
20	248		33	752
21	269		34	824
22	292		35	902
23	318		36	990
24	346		37	1087
25	376		38	1196
26	409		39	1318
27	446		40	1454
28	485
29	529
30	577

How to Apply?

We can apply only through off-line mode. To my knowledge, Banks are not offering online application for this Pension scheme.

Off-Line Application (By Submitting Application form in Bank)

1. Download the form from the below link: http://www.jansuraksha.gov.in/Files/APY/ENGLISH/ApplicationForm.pdf#zoom=250

2. Fill in the form with the necessary details. Since we already have the account with our banker, this form has very minimal entries to be filled in. It wont take more than 15 minutes to fill this form.

3. Don’t forget to fill the Aadhar Number if you have one.

4. No need to have / affix Photograph in the application form.

5. Submit the duly filled in application form to your banker. They will take care of the rest. Within a week’s time the scheme will be activated.

Key Points to note:

1.The contribution to be made every month.

2. Contributions should be made till 60 years of age.

3. Upon the completion of 60 years, we will have to submit the request to the our bank (Where we opted for this scheme) for drawing the guaranteed monthly pension.

4. One can open only one APY account

5. It should be operated through savings bank a/c only. If the members have more than one savings a/c, he can choose any one savings a/c of his choice.

6. In case of the death of the subscriber after 60 years of age, pension would be available to the spouse and on the death of both of them (subscriber and spouse), the pension corpus would be returned to his nominee.

Once it is done, we will receive an acknowledgement from the bank for all the 3 schemes like the one below: 

For Clarifications and doubts regarding any of the above mentioned 3 schemes, we can contact the toll-free numbers below: 

Pan India toll-free no: 1800110001 / 18001801111

Toll-Free number for TamilNadu: 18004254415

Credits: http://www.jansuraksha.gov.in, Advertisements in TOI, RBI website etc.,

Conclusion:

It’s a wonderful initiative and we should make use of these schemes. For a subsidized premium, they offer reasonable return to land the future in safe hands. Of the 3 above, I personally feel PENSION YOJANA is the best one. 

Voluntary savings for the future has become a history these days. We got used to spend a lot more than what we earn. This pension scheme will surely help those who are working in unorganized sector. They face more risk than those working in organized sector.  Requesting you all to make use of this opportunity and save for the future.  Small drops maketh an ocean, similarly, these small contributions will turn out to be a lumpsum money in the future.

This post is just my observation of the PM Insurance & Pension schemes based on my understanding of the rules prescribed in the Govt website. Feel free to mail me at innovativedeepak87@gmail.com, if you feel that the content is being misinterpreted.  

I should thank my friends Suren Kumar, Pavithra & Rajiv for sharing the information and clarifying my doubts while drafting this blog post. Thanks so much. Thanks to you all for your patience in reading this post.

Let’s make a better tomorrow.

Cheers,
Deepak Raghuraman
innovativedeepak87@gmail.com