PMJJBY vs PMSBY Schemes - Differences & Similarities

Are you confused between PMJJBY and PMSBY schemes? Want to know which scheme offers better insurance coverage for your family’s future? With our busy lifestyle, we often find ourselves walking the tightrope between security and uncertainty. This is where insurance comes in. Insurance is an essential aspect of the government’s health goals. These initiatives provide health insurance coverage for vulnerable sections of society and offer financial assistance during medical emergencies such as accidents or illness. These schemes enable citizens to get medical treatment quickly without breaking their bank or other financial burden. 

PMJJBY and PMSBY are among those schemes, launched by the government of India under a comprehensive scheme known as the ‘Jan Suraksha schemes’ in 2015 launched from Kolkata. Wondering what these insurance schemes are all about? This article will explore both of these PMJJBY and PMSBY scheme details and highlight the differences & similarities among them.

What is PMJJBY (Pradhan Mantri Jeevan Jyoti Bima Yojana)?

PMJJBY stands for Pradhan Mantri Jeevan Jyoti Bima Yojana, a government-backed life insurance scheme launched on May 9, 2015, by Prime Minister Narendra Modi in Kolkata. According to the Press Information Bureau, there have been 16.2 crore enrollments under PMJJBY as of 26th April 2023. This scheme offers life coverage to Indian citizens between 18 and 50 years. Additionally, this is annually renewable, offering financial help to the insured’s family in case of his/her demise. This scheme is offered by LIC (Life Insurance Corporation), Indian banking institutes, and other life insurance companies. Indian citizens who have a savings bank account at a recognized bank can benefit from this scheme. 

Key Features

• Eligibility: Only Indian citizens aged 18 and 50 years are eligible for this scheme, but they must have a savings account in a recognized bank. If the policyholder owns multiple savings accounts among different banks, they are eligible for PMJJBY only through a single savings bank account of his/her choice. 
• Coverage: This scheme offers Rs2 lakhs guaranteed life coverage in case of the insured’s demise regardless of the reason (natural or accidental). A fixed amount of payment is made to the nominee(s) of the deceased policyholder.
• Premium: The annual payment for PMJJBY is Rs436 for every supporter automatically debited from the insured’s bank account. Undoubtedly, this premium amount is higher than other life insurance schemes, but it offers a broader coverage.
• Claims: In case the insured dies, the nominee(s) can claim the coverage from the insured’s bank. Then, the nominee(s) need to download the claim form and submit it to the bank after filling in all the relevant details and documents. These include a death certificate copy, a voided check or passbook,  and policyholders’ self-declared medical documentation. Furthermore, the bank processes this claim and offers the lump sum payment to the nominee(s).
• Benefits: It is a 1-year Term Life Insurance Scheme (from June 1st to May 31st), offering life insurance coverage regardless of the cause of death. If the subject enrolls for this scheme just before turning 50, they can extend their eligibility to 55 years. However, they must have savings bank accounts between 18-50 years of age.

What is PMSBY (Pradhan Mantri Suraksha Bima Yojana)?

PMJJBY stands for Pradhan Mantri Suraksha Bima Yojana, a government-backed accident insurance scheme launched on May 8, 2015, by Prime Minister Narendra Modi in Kolkata. This scheme covers accidental death and disabilities due to an accident. It is available for Indian citizens between the ages of 18 and 70 who hold savings accounts in recognized banks. This scheme is offered by both public and private sector banks and other general insurance companies. According to the Press Information Bureau, there have been 34.2 crore enrollments under PMSBY as of 26th April 2023.

Key Features

• Eligibility: Indian citizens aged 18 and 70 years are eligible for this scheme, but they must hold a savings account in an official bank. If the policyholder owns multiple savings accounts among different banks, they are eligible for PMSBY only with a single savings bank account. 
• Coverage: This scheme offers Rs2 lakhs in accidental death or permanent(total) disability coverage (a one-year passing front), and Rs1 lakh in case of permanent (partial) disability. Under this scheme, the coverage is offered to the policyholder in case of an accident leading to death or disability.
• Premium: The premium for PMSBY is just Rs12 per insurer annually, which is automatically deducted from the insured’s savings bank account. The premium amount for this scheme is highly affordable, making it accessible to a large number of people.
• Claims: If the insured suffers accidental death or disability, the nominee(s) or policyholder can claim the coverage from the bank. They need to visit the bank in person, purchase the original policy, fill in all the relevant details, and add documents. These include  FIR/Panchnama, Post Mortem Report, and Death Certificate in case of accidental death and FIR/ Panchnama and Disability Certificate in case of disabilities. The bank then processes this claim and offers the lump sum payment to the nominee(s).
• Benefits: It is an Accidental Insurance Scheme (from June 1st to May 31st), offering accidental insurance coverage, if the owner dies or is disabled. Moreover, it covers both fully or partial disabilities (permanent); fully disabilities: 2 lakhs and partial disabilities: 1 lakh rupees. However, they must have savings bank accounts between 18-50 years of age.

Key Difference Between PMJJBY and PMSBY

In India, PMJJBY and PMSBY are launched to offer financial coverage to people at affordable premiums. Although both of these schemes are designed to provide insurance benefits, they vary in terms of eligibility, coverage, premium, and benefits. Here’s a difference table for PMJJBY and PMSBY:

Similarities Between PMJJBY and PMSBY

If you want to make the most of these schemes, then knowing the differences and similarities between PMJJBY and PMSBY scheme details is crucial. Below are some notable similarities between the two schemes:

• Both PMJJBY and PMSBY schemes are supported by the Government of India and regulated by IRDA.
• Both public and private banks provide financial insurance coverage for these schemes.
• The maximum sum assured under these policies is Rs2 lakh.
• Citizens need to have a savings account to enroll in these policies.
• Both of these schemes provide an “auto-debit” facility, used to deduct the annual premiums from the insured’s bank account.
• Both PMJJBY and PMSBY schemes are valid from June 1st through May 31st of the following year.
• The entry-level age for both schemes is 18 years.
• These coverages will get automatically terminated if the policyholder reaches the maximum age or closes the savings account.
• Limited documentation and easy enrollment process for both schemes.
• The nominees of the scheme will receive the sum assured if the policyholder dies.

How to Enroll in PMJJBY and PMSBY?

Indian citizens can enroll for PMJJBY and PMSBY schemes either online or by visiting the bank in person. They can also apply through a post office savings bank account.

Steps to Enroll in PMJJBY

PMJJBY enrollment is automatic and renewable with an option for insured to withdraw. These default settings maximize the reach and coverage of this scheme. To enroll in PMJJBY, follow these steps:

• Visit Jansuraksha's official website.
• Download and print the consent-cum-declaration form.
• Fill up the relevant details and sign the form.
• Attach self-attested copies of the required documents.
• Submit the form at the bank to an authorized official or in the post office.
• Get an acknowledgment slip and certificate of insurance.

Other ways to enroll for PMJJBY are also available. Through SMS, send a message to 8422009988 with a written note “PMJJBY (last 4 digits of the account number)Y”. Using Internet banking, first log in to your net banking savings account, then click the “Insurance” tab, and PMJJBY. Moreover, you can also enroll for PMJJBY through phone banking, by calling your bank’s customer care and simply following the instructions. Besides them, you can enroll by visiting a bank branch or post office.

Document Required for PMJJBY

• Proof of death, such as death certificate, hospital discharge summary, etc.
• Identity proof such as Adhaar and PAN numbers of the deceased, nominee, and claimant.
• KYC documents of the nominee, claimant, or appointee.
• Bank or post office account details
• Postmortem report
• FIR/Panchnama
• Final investigation report
• Proof of nominee’s death (if died before the insured)

Steps to Enroll in PMSBY

PMSBY enrollment is automatic and renewable unless the insured withdraws it, ensuring its maximum reach and coverage. To enroll in PMSBY, follow these steps:

Online

• Go to the insured’s net banking website.
• Login to the account using credentials.
• Search for the “Insurance” tab on the homepage and click.
• Navigate to “Social Security Schemes” and then select “Pradhan Mantri Suraksha Bima Yojana (PMSBY).”
• Choose the bank account for making payment.
• Review the details and confirm.
• Make payment to initiate the account activation process.
• Download the confirmation receipt.

Offline

• Go to the official bank branch where you opened your savings account.
• Get the application form from the PMSBY official website.
• After downloading the form, enter all relevant details and submit it to the bank. Don’t forget to add all required documents.
• Once it is submitted, you will get an Acknowledgment Slip and Certificate of Insurance.

Document Required for PMSBY

• KYC document
• Proof of identity such as PAN card, Aadhar card, passport, voter ID card, or driving license.
• Nominee details such as name, address, date of birth, relationship with the applicant, and contact details.

Who Should Consider Enrolling in These Schemes?

If you are unclear between these schemes (PMJJBY and PMSBY), look into the following considerations before applying:

• These schemes are valid for those with limited financial resources and looking for affordable health insurance options.
• Workers in the unorganized sector or informal jobs like manufacturing without any insurance provided by the employer.
• Households are seeking to safeguard their family’s financial future in case of unfortunate events.
• Young adults (age of 18 or above) who desire to begin early with insurance coverage at an affordable premium.
• Both of these schemes (PMJJBY and PMSBY) are designed for the 18 to 50-year-old age group, making it ideal for young adults and middle-aged people.
• Those who are seeking easy and straightforward insurance schemes with little documentation and without complex terms and conditions.

Limitations and Considerations

Although both of these schemes (PMJJBY and PMSBY) offer many outstanding benefits, certain limitations need to be considered. These include:

1. Age Restrictions

PMSBY covers a significant number of people due to its broader age limit (18 to 70 years) compared to PMJJBY which covers people aged 18-50 years only. It excludes senior citizens and children.

2. Coverage Limitations

In the case of PMJJY, this scheme offers a sum assured of Rs2 lakhs for the insured’s demise but doesn’t cover deaths from pre-existing illnesses. On the other hand, PMSBY covers only accidental deaths and disabilities (partial or fully) but doesn’t offer coverage for natural death or illness.

3. Policy Termination

Both schemes automatically terminate when the insured reaches the maximum age limit; PMJJBY at age 50 and PMSBY at age 70. Moreover, these policies can also be terminated if the bank account is inactive/closed or insufficient balance for premium payment.

4. Claim Exclusions

Both PMJJBY and PMSBY schemes exclude claims arising from alcohol or drug influence, acts of war, and participation in hazardous activities. These limitations need to be reconsidered, so can make changes accordingly for better reach.

5. Premium Affordability

While PMJJBY has an annual premium of Rs 436, PMSBY is significantly cheaper at Rs 12 annually. This may affect the perceived value and uptake of each scheme.

Wrapping Up

Government-backed several financial supportive initiatives for low-income households if the breadwinner dies or becomes disabled (fully or partially). Likewise, PMSBY and PMJJBY are cheap premium insurance policies where you only need a savings account to access them with minimal documentation. Moreover, these policies have flexible terms and conditions, ensuring the protection of economically underprivileged family members against death and disabilities. Now that you have significant PMJJBY and PMSBY scheme details; it’s the right time to choose the most suitable one to safeguard your family's future.

If you travel a lot or work in a hazardous place, then your must-go choice should be PMSBY policy. However, you can opt for PMJJBY for life insurance coverage against death. You can also enroll in both of these schemes to avail maximum protection as they complement each other. In case, you are looking for comprehensive insurance coverage with a higher sum insured amount, consider other insurance companies as per your need.

InsuranceDekho is one such company where you will get comprehensive health coverage, direct claim settlement, easy processing, and more benefits. So, visit our site today to get better insights on our medical insurance policies.

FAQs

Ques 1. Is it possible to enroll in both PMJJBY and PMSBY insurance coverages?

Ans. Yes, You can enroll for both the PMJJBY and PMSBY insurance policies if you fit in their eligibility criteria. These insurance schemes are offered by the government of India and regulated by IRDA; having different purposes. Additionally, you can enroll for them either online or offline if you wish to get the benefit of both policies.

Ques 2. Who is eligible for PMJJBY and PMSBY?

Ans. If you want to enroll for PMJJBY and PMSBY, you must have a savings bank account in a recognized bank in India. You should also age between 18 to 50 years for PMJJBY and between 18-70 years for PMSBY. Besides them, eligibility conditions may vary from bank to bank, so verify with yours.

Ques 3. How Do PMJJBY and PMSBY Renewals Work?

Ans. Both PMJJBY and PMSBY are government-backed insurance policies. PMJJY is a life insurance policy that offers Rs2 lakh coverage in case of the insured’s death because of any reason. However, PMSBY, is an accident insurance policy, offering Rs2 lakh coverage in case of accidental death or fully disability and Rs1 lakh in case of partial disability.

Ques 4. Should I Choose PMJJBY or PMSBY?

Ans. It’s quite difficult to decide which of these schemes is better as they offer different insurance coverage. So, which works best for you completely depends on your needs, circumstances, and budget.

Ques 5. Does PMSBY Cover Natural Deaths?

Ans. No, PMSBY doesn’t cover natural deaths. It only covers death or disabilities due to accidents and offers coverage of Rs2 lakhs. In case of partial disability, it provides lakh coverage. So, if you wish to enroll for insurance policies, best to consult a financial advisor before finalizing.