Pradhan Mantri Jeevan Jyoti Bima Yojana
Also written PMJJBY
A government life insurance scheme for bank account holders aged 18 to 50, with a fixed annual premium auto-debited from one savings account.
In plain language
Pradhan Mantri Jeevan Jyoti Bima Yojana, or PMJJBY, is the government's low-cost life insurance scheme for bank account holders, run alongside the accidental-cover PMSBY.
Its age band is narrower than PMSBY's: it provides life insurance cover to bank account holders in the age group of 18 to 50 years. Like PMSBY, the premium is a fixed annual amount, deducted automatically from the account through auto-debit.
And, again like PMSBY, enrolment is capped at one account per person: a person would be eligible to join the scheme through one savings bank account only.
How it works
The workbook lists PMJJBY with the same three-part mechanism as PMSBY, but for life cover instead of accident cover:
- Age band: 18 to 50 years.
- A fixed annual premium, deducted through auto-debit from the insured's bank account.
- One savings bank account only for eligibility.
The workbook does not state the specific premium amount or the sum assured for PMJJBY in this booklet — only the age band, the auto-debit mechanism and the one-account rule.
A worked example
Sunita, aged 34, enrols in PMJJBY through her salary savings account, and a fixed annual premium is auto-debited each year without any action on her part.
Her father, aged 68, wants to enrol in the same scheme, but the workbook's stated age band for PMJJBY is 18 to 50 years — he is outside it, and so is not eligible for PMJJBY, even though he would still fall within PMSBY's wider 18 to 70 band for accidental cover.
If Sunita were to pass away while the policy is active, PMJJBY would pay out as life cover — a different trigger from PMSBY, which pays only for accidental disability.
Why NISM asks about it
Chapter 9 (Government Schemes for Various Savings and Investment Options) lists PMJJBY immediately after PMSBY, in the same Basic Insurance Schemes section. Expect a direct contrast question: PMJJBY is life cover with an 18–50 age band; PMSBY is accidental cover with an 18–70 age band.
Common exam traps
- PMJJBY's age band is 18 to 50 — narrower than PMSBY's 18 to 70. This is the most commonly tested distinction between the two schemes.
- PMJJBY pays on death; PMSBY pays on accidental disability. They are not the same trigger.
- One savings bank account only, exactly as with PMSBY — this rule is common to both schemes.
- The workbook states no specific premium or sum-assured figure for PMJJBY in this booklet.
Check yourself
1.Which pair correctly matches the scheme to its cover and age band?
- a)Suraksha Bima Yojana — life cover, 18 to 50; Jeevan Jyoti Bima Yojana — accident cover, 18 to 70
- b)Suraksha Bima Yojana — accidental cover, 18 to 70; Jeevan Jyoti Bima Yojana — life cover, 18 to 50
- c)Both provide life cover, for ages 18 to 60
- d)Suraksha Bima Yojana — health cover, 18 to 70; Jeevan Jyoti Bima Yojana — accident cover, 18 to 50
Show the answer
Answer: (b) Suraksha Bima Yojana — accidental cover, 18 to 70; Jeevan Jyoti Bima Yojana — life cover, 18 to 50
"Pradhan Mantri Suraksha Bima Yojana — Provides ACCIDENTAL insurance cover to bank account holders in the age group of 18 TO 70 years... Insurance covers PERMANENT AND PARTIAL DISABILITY due to accident." "Pradhan Mantri Jeevan Jyoti Bima Yojana — Provides LIFE insurance cover to bank account holders in the age group of 18 TO 50 years." This is the most-swapped pair in the chapter, and a memory hook helps: Suraksha means protection — from an accident — and it runs longer, to 70; Jeevan Jyoti, the lamp of life, is life cover ending at 50. Both share the same mechanics: "a fixed annual premium is deducted from the bank account of the insured through AUTO-DEBIT facility" and "person would be eligible to join the scheme through ONE SAVINGS BANK ACCOUNT ONLY." The disability clause on Suraksha is the one most often missed and, for anyone whose income depends on physical capacity, the most valuable.
Where this is taught
Free preparation for NISM Series SEBI-ICERelated terms
- Insurance policyThe written contract an insurer gives a policy holder. It states the premium, the sum assured, and the conditions under which the insurer will pay a claim.
- Pradhan Mantri Jan Dhan YojanaThe Government's financial inclusion scheme launched in August 2014: a zero-balance bank account with a RuPay debit card, insurance cover, an overdraft facility and direct benefit transfers.
- Pradhan Mantri Suraksha Bima YojanaA government accidental insurance scheme for bank account holders aged 18 to 70, with a fixed annual premium auto-debited from one savings account.
- Pradhan Mantri Fasal Bima YojanaA crop insurance scheme that pays farmers based on the gap between a threshold yield and the actual yield, compulsory for farmers who have taken institutional loans.