PMJJBY vs PMSBY: Can You Enroll in Both? Pros and Cons

At a Glance

1. Introduction
2. Understanding PMJJBY and PMSBY
3. PMJJBY vs PMSBY: Can You Enroll in Both? 
4. Pros and Cons of PMJJBY and PMSBY
5. Claim Process and Time Limits
6. Conclusion

Introduction

Low-cost insurance schemes such as PMJJBY or Pradhan Mantri Jeevan Jyoti Bima Yojana and PMSBY or Pradhan Mantri Suraksha Bima Yojana extend a shield of financial protection to their holders. This article will deep-dive into PMJJBY vs PMSBY to illustrate its key benefits, eligibility for enrollment, premium amounts, and processes for claiming the same, plus whether both can be taken at the same time.

Understanding PMJJBY and PMSBY

PMJJBY and PMSBY were established by the Indian government to provide low-cost life and accident insurance policies to individuals. The aim of these schemes is to offer financial security and cover them against risks at minimal premiums across various ages.

Pradhan Mantri Jeevan Jyoti Bima Yojana (PMJJBY)

The PMJJBY is a pure life insurance policy that provides the family of the insured with economic protection in case of death. The entire scheme wishes to provide a guarantee to its policyholders that they can insure dependents against unexpected events at an annual premium of Rs. 436.

This scheme covers an individual aged between 18 and 50 years, who possesses an operative savings bank account. The amount of cover under this scheme is Rs. 2 lakh and is paid to the nominee in case of the death of the insured, regardless of cause. Because this plan is not a survival or maturity benefit, risk cover is all that the scheme offers under it. The plan offers an annual renewal so that the financial cover is available continuously.

One aspect of PMJJBY is that one requires a mandatory nominee to register with the insurance scheme, thus ensuring the insurance benefit in the hands of the actual beneficiary. The ease of bank verification and an insurer's sanction makes it an accessible and effective product among the lower-income group.

Pradhan Mantri Suraksha Bima Yojana (PMSBY)

PMSBY is a personal accident insurance policy that has been launched to provide monetary assistance in case of both permanent disability and accidental death. Its premium of Rs. 20 under the regime will cover the high risk, qualifying it as extremely cheap for the common man. 

This was developed for the 18-70 age group with a savings bank account in the Indian folding. The risk coverage available is Rs 2 lakh for accidental death or anything deemed to be total disability and Rs 1 lakh for partial disability thus providing monetary assistance to the insured in case of any misfortunes.

Just like PMJJBY, it is an annual scheme and thus ends by the end of every year and will need a nominee for the apparent reason of reaching to the right beneficiary at the right time. The claim process is simple and involves a verification from the bank and the approval of the insurer, making the amount available promptly. Thus, this scheme proves to be a boon for the individuals in high-risk occupations where accidents happen unexpectedly.

Also Read: The Key Differences Between Double Insurance and Reinsurance Explained

PMJJBY vs PMSBY: Can You Enroll in Both? 

Yes, an individual can enroll in both PMJJBY and PMSBY as they serve different purposes:

PMJJBY Covers Death Due to Any Cause

PMJJBY is a complete insurance coverage that secures the financial needs of the insured's family in case of death for any reason. Thus, it has proven to be a good life insurance product for securing the long-term interests of the dependent. The premium is reasonable and the policy comes with an annual renewal system, making it available to the entire population.

PMSBY Covers Accidental Death and Disability

PMSBY is designed especially for those whose professions are riskier, like unsafe occupations. It offers a Rs 2 lakh cover for accidental death or total disability and Rs 1 lakh for partial disability. However, it serves the purpose of relieving the family financially in the event of an accident so that the individuals can afford medical expenses or loss of income due to disability.

Financial security against any natural death, accidental death, or disability comes to the members when they join both PMJJBY and PMSBY. Companies could include both of these schemes into the employees' and clients' financial preparations, making them secure and stable in the event of an unforeseen incident. It enhances organizational employee benefits and risk mitigation schemes through proactive interventions. 

Pros and Cons of PMJJBY and PMSBY

Pros of PMJJBY

• Low Premium - It is pretty much affordable because PMJJBY provides life insurance for the price of Rs. 436 per year, and thus even the least income group may be able to afford it.
   
• Comprehensive Coverage - The policy pays Rs. 2 Lakh for both natural and accidental deaths and has complete financial protection.
   
• The Enrollment Process is Simple - Requires minimal documentation. The premium is automatically debited from the insured's bank account for renewal with no hassle.

PMJJBY Cons

• Eligibility Age Limitation - It is applicable only for 18-50 year age groups and thus excludes many old people.
   
• Each Year Renewable - This is a policy that has to be renewed every year; otherwise, it lapses and does not provide any benefits.
   
• No Maturity Benefit - PMJJBY is purely a risk-cover. It does not provide any returns like a conventional policy. 

Pros of PMSBY

• Very affordable premium - PMSBY, probably the cheapest accident insurance coverage, has an annual premium of only Rs. 20.
   
• Wider Age Coverage- From 18 years to 70 years, it has a broader stretch of eligibility than PMJJBY.
   
• Cover in Case of Accidents- The policy offers Rs. 2 lakhs for accidental death or total disability and Rs. 1 lakh for partial disability.

Cons of PMSBY

• Limited Scope of Coverage - The coverage is strictly limited to accidental death or disability. Hence, it has a narrower scope compared to PMJJBY.
   
• Annual Renewal Required- Same as PMJJBY, PMSBY needs to be renewed every year, or else the coverage lapses.
   
• The payout cap - It is limited to Rs. 2lakhs, which is insufficient to meet the needs of families facing continuing financial stress.

Claim Process and Time Limits

PMJJBY Claim Process

The PMJJBY claim procedure gives nominees a very simple and stress-free settlement of claims.

• Claim Intimation- the nominee informs the bank of the death of the policyholder to initiate a claim.
   
• Submit Documents- Documentation includes a death certificate, the claim form, and nominee details for verification.
   
• Bank Processing- The Bank processes the claim and forwards the application to the insurance company for settlement.
   
• Payout- Enabler transfers an amount of Rs.2 lakh to the nominee's bank account.

PMSBY Claim Process

PMSBY Claim Process helps you get immediate cash support in case of accidental disability or death.

• Claim Intimation- The policyholder will inform the bank regarding the claim in case of disability while the nominee will inform the bank in case of death.
   
• Submit Documents- Required documents include FIR, post-mortem report (in the case of death), or medical certificate (in the case of disability).
   
• Bank and Insurer Verification- The Bank will verify the claim and forward it to the respective insurance provider for final approval.
   
• Payout- Once approved, the amount insured is transferred to the nominee or to the policyholder.

PMSBY Claim Time Limit After Death

• Timely recognition of Claims will prevent rejection and speed up the payout.
   
• A claim under PMSBY must be registered within 30 days of the accident for it to be considered valid under the scheme. 
   
• Delayed claims may be rejected, causing financial distress to the nominee.

What Is The Premium Amount For The Pmjjby Scheme?

The premium amount is Rs. 436 per annum under PMJJBY taken from the policyholder's savings account every year via auto-debit for continuity of cover.

Who Should Enroll in These Schemes? 

• Employees Working in High-Risk Environment

Construction, manufacturing, and transport workers are always highly at risk of an accident. They will benefit from PMSBY as security against the financial effects of an accident. It provides cash benefits in the case of accidental death and disability and helps reduce the financial burden.

• Small Business Owners and Entrepreneurs

Entrepreneurs are not typically covered by employer-sponsored insurance benefits, and therefore PMJJBY is important for them. It offers life insurance of Rs. 2 lakh to families of the policyholders in the case of death due to any cause, enabling business continuity.

• Financial Institutions & Banks

By making PMJJBY and PMSBY available as value additions to various banking services, banks and financial institutions can bring themselves closer to their customers while enhancing their levels of trust. These schemes will add value to savings accounts; thereby helping retain and increase loyalty among customers.

Conclusion

PMJJBY and PMSBY are great initiatives by the Indian Government to provide low-cost security to the citizens in the form of life and accident cover. While individuals can benefit from these government-promoted insurances, organizations and financial institutes can also leverage them to provide financial security to employees, and to add value to their existing products and services, respectively. 

If you want to activate these policies for yourself, your family members or your organization, visit OneAssure today. Our experts can provide comprehensive guidance and help with the process of securing the insurance.