Two government insurance schemes — different purposes
The Indian government offers two extremely cheap insurance schemes designed for low-income households who can't afford private insurance. Both auto-debit from your savings account.
### 1. PMJJBY (Life Insurance) - Cover: ₹2 lakh on death (any cause) - Premium: ₹436/year (₹436 from June 2022; was ₹330 till May 2022) - Auto-debit: From your savings account in late May / early June every year - Period: 1-year renewable, automatically renewed unless you opt out
### 2. PMSBY (Accident Insurance) - Cover: ₹2 lakh on accidental death OR permanent disability; ₹1 lakh for partial disability - Premium: ₹20/year - Auto-debit: Same time as PMJJBY - Period: 1-year renewable
### Combined: ₹456/year for ₹4 lakh protection
This is the cheapest insurance in India — and most middle-class Indians don't enroll. Mandatory awareness gap.
Who is eligible
### PMJJBY - Indian resident - Aged 18-50 (cover continues till age 55 if you enrolled before 50) - Has a savings account at a participating bank (almost all Indian banks) - One person, one PMJJBY policy (across all banks)
### PMSBY - Indian resident - Aged 18-70 - Has a savings account at a participating bank - One person, one PMSBY policy
### Not eligible / excluded - Senior citizens 70+ for PMSBY - People aged 50+ for fresh PMJJBY enrollment (existing enrollees continue till 55) - People with multiple savings accounts can enroll only via ONE bank for each scheme
How to enroll
### Online via your bank's net banking
1. Login to your bank's net banking 2. Search for "PMJJBY" or "PMSBY" enrollment 3. Click "Enroll" 4. Verify Aadhaar + savings account + nominee details 5. Submit; auto-debit starts next renewal cycle
### At your bank branch (offline)
1. Visit branch 2. Fill PMJJBY/PMSBY enrollment form 3. Provide Aadhaar + savings account passbook 4. Designate nominee 5. Auto-debit consent 6. Submit
### Annual auto-debit
Each year (typically May 31 / June 1), the bank auto-debits the premium from your savings account. Make sure your account has at least ₹500 balance on May 30 to avoid lapse.
How to claim
### PMJJBY death claim (₹2 lakh)
If the policyholder dies during the cover year: 1. Nominee approaches the bank where PMJJBY was active 2. Submits claim form + death certificate + Aadhaar of nominee + bank passbook of nominee 3. Bank forwards to LIC (which administers PMJJBY) 4. Approval typically 30-45 days 5. ₹2 lakh credited to nominee's account
### PMSBY accident claim (₹2 lakh death / ₹2 lakh permanent disability / ₹1 lakh partial disability)
1. Within 30 days of accident: inform bank 2. Submit FIR/police complaint copy + medical certificate + claim form 3. Bank forwards to insurance company (typically PSU general insurer) 4. Approval depends on documentation; 30-60 days 5. Amount credited to nominee or self (in case of disability)
Why these schemes are underused
Despite 60+ crore eligible savings accounts, only ~16 crore people are enrolled. Reasons:
1. Lack of awareness. Banks don't actively push these (no commission). 2. Confusion with private insurance. People think ₹436 is "too cheap to be real." It's real. 3. Hindi/regional language barriers. Most enrollment forms in English/Hindi only. 4. Multiple-account confusion. People with 5 bank accounts don't know they can only enroll via one for each scheme. 5. Premium auto-debit lapse. Insufficient balance = scheme lapses; people don't notice.
When PMJJBY is enough vs when you need more
PMJJBY is ₹2 lakh cover. For a typical urban earner with a family:
- Adequate when: Your family has minimal financial obligations. Single, no dependents.
- Not adequate when: You have a home loan, children's education planning, dependent parents.
For comprehensive protection, combine PMJJBY with: - Pure term insurance (₹50L-1Cr cover for ₹10-15K/year). Read Best Term Insurance India 2026. - Health insurance for hospitalization protection. Read Best Health Insurance India 2026.
PMJJBY is a "floor" — additional protection above is recommended.
Tax treatment
Premium paid is NOT separately tax-deductible (already very small, not specifically eligible).
Death benefit / claim payout is fully tax-exempt under Section 10(10D) of the Income-tax Act.
How to update / cancel
### Update nominee Visit branch with PMJJBY/PMSBY nomination change form + Aadhaar.
### Cancel auto-debit (opt out) Visit branch and submit opt-out form OR via net banking under "Manage PMJJBY/PMSBY". Once opted out, you must re-enroll; no automatic re-renewal.
### Change bank If you close the savings account where PMJJBY/PMSBY is linked, the scheme lapses. You must re-enroll at the new bank.
Common scams to watch
1. "Pay ₹500 to renew" calls. Renewal is auto-debit from your bank account. Anyone asking for cash is a scammer. 2. "You'll get extra cover for an extra premium." Schemes are flat ₹436 / ₹20. No upsell variants. 3. Fake claim assistance. PMJJBY claim is processed via the bank; no third-party agent needed.