Strengthening Social Security: Pradhan Mantri Jeevan Jyoti Bima Yojana (PMJJBY), 2015

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Policy update
Srishti Sinha

Introduction

The Indian population is growing, and the country is demonstrating strong growth potential. In this scenario, a lack of financial inclusion can be one of the major challenges faced by the government. According to the 2011 Census, nearly 72% of the Indian population resides in rural parts of the country and is highly dependent on daily wages for sustenance. Thus, it becomes imperative for the government to ensure social security and strengthen the financially weaker section of society. The Pradhan Mantri Jyoti Bima Yojana (PMJJBY) is a step in this direction.

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Background

On May 9, 2015, the Government of India launched the Pradhan Mantri Jeevan Jyoti Bima Yojana (PMJJBY), which is a government-backed life insurance scheme in India. It was originally proposed in the 2015 budget speech by the Union Finance Minister, as only 20% of India’s population was covered under any kind of insurance at the time. Consequently, the PMJJBY was launched to increase the penetration of life insurance among citizens.

The objective of this scheme is to provide affordable life insurance cover to eligible people, especially the poor and underprivileged, for death caused by any reason.  It is a one-year life insurance scheme, renewable annually, available to individuals in the age group of 18-50 years (with life cover up to 55 years). Anyone having a savings bank account and who gives their consent to join and enable auto-debit is eligible under the scheme.

Functioning

PMJJBY is extended through LIC (Life Insurance Corporation) and other private life insurance companies in India. An individual can approach their banker for the process of enrollment, as banks have ties with insurance companies. In case an individual holds multiple bank accounts in one or different banks, the person will be eligible to join the scheme through only one bank account. Individuals in the age group of 18-50 years having a savings bank or a post office account are entitled to enroll under the scheme. People who join the scheme before completing 50 years of age can continue to have the risk of life covered up to the age of 55 years upon payment of the premium.

A premium of Rs. 436 (~ US$5.2) per annum per member is levied. The premium will be deducted from the account holder’s savings bank account through the ‘auto-debit’ facility in one instalment, as per the option given on or before May 31 of each annual coverage period under the scheme. Delayed enrollment for prospective coverage after May 31 is possible with payment of the appropriate pro-rata premium. The premium would be reviewed based on annual claims experience. Any changes in the premium amount under the scheme would be intimated immediately when revised. A benefit of Rs. 2 lakh is payable on a member’s death (due to any natural/unnatural reasons) to the nominee/beneficiary of the policy.

Claim Settlement Process under PMJJBY:

Nominee:

  • Has to visit the bank where the deceased held the PMJJBY-linked savings account.
  • They have to submit the death certificate.
  • Collect and fill out the claim form and discharge receipt (available at the bank, insurance branches, agents, hospitals, or online).
  • Submit the completed documents along with a cancelled cheque or account details of the nominee.

Bank:

  • Verify the claim form and nominee details.
  • Submit the following to the insurance company within 30 days:
    • Completed the claim form and death proof
    • Aadhaar and PAN of the deceased and the nominee
    • KYC of the nominee
    • Bank details (passbook, statement, or cancelled cheque)
    • Additional documents if the nominee is deceased or the claimant is a legal heir
    • Advance receipt for claim

Insurance Company:

  • Verify completeness and eligibility.
  • Check if coverage was active and if no prior claim exists.
  • If valid, release payment to the nominee and notify both the nominee and the bank.
  • Approve and disburse the claim within 7 days of receipt from the bank

Performance

The following table depicts the number of people enrolled under the PMJJBY and the amount of claims disbursed, from the Financial year 2016 to 2023:

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Source: Pradhan Mantri Jeevan Jyoti Bima Yojana | IBEF

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This bar graph shows the number of people (in crores) who enrolled in PMJJBY each financial year.

  • The scheme began strongly, with 2.97 crore enrolments. This shows the initial success of outreach after its launch in May 2015. However, there was a sharp drop to just 0.16 crore in FY17.
  • In FY18, there was a strong recovery to 2.23 crore, suggesting better implementation or renewed public interest.
  • In FY19-FY20, the enrolments dropped again (0.69 crore in FY19 and 1.10 crore in FY20), showing inconsistent uptake.
  • In FY21-FY23, enrolments surged again with 3.20 crore (FY21), 2.54 crore (FY22), and 3.30 crore (FY23). The high enrolment in FY21 likely reflects increased insurance awareness due to the COVID-19 pandemic, when people became more conscious about life insurance and mortality risks. High enrollment doesn’t always correspond to immediate high claims, since insurance covers future events. But a crisis (like COVID-19) causes both: more people buy policies, and more death claims are filed.
  • The sustained enrollment in FY23, the highest ever, may reflect improved trust and system maturity.
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This graph represents how many death claims were settled by the insurance companies each year. 

  • FY16-FY18, the number of claims disbursed remained moderate, between 25,000 to 31,000. These are early years, with the scheme still building traction.
  • In FY19-FY20, a Slight rise to ~45,000 claims. This likely reflects both increased awareness and the passage of time, as more insured individuals had matured policies.
  • In FY21, claims rose to 63,181, correlating with the first major COVID wave in India. 
  • In FY22, there was a dramatic jump to 3,40,192 claims, which is by far the highest and aligns with the second wave of COVID-19, which was significantly deadlier. This indicates the scheme served its core purpose, i.e., providing financial security to families who lost breadwinners.
  • In FY23, claims decreased to 78,876, still higher than pre-COVID years but much lower than the FY22 peak. This could suggest a return to relatively normal mortality rates.

As of February 12, 2025, the cumulative enrolments under the Pradhan Mantri Jeevan Jyoti Bima Yojana (PMJJBY) stood at 22.97 crore, while 9,22,338 claims were received, and 8,89,968 claims were disbursed.

Impact

These graphs show how PMJJBY has evolved from a new government scheme into a critical social safety net, especially in times of public health crises. The scheme’s relevance and importance was proven during COVID-19, as enrolment surged and claims were disbursed at record levels, providing essential support to bereaved families.

Emerging issues

  • There’s a clear gap between the number of claims submitted and those actually paid out. Many are rejected due to incomplete documents, policy lapse, or lack of nominee details.
  • Many beneficiaries could be unaware of how to file claims or that the policy even exists.
  • As the scheme requires annual renewal, many accounts become inactive due to insufficient balance or missed debits, leading to claim rejections.
  • Digital divide is also an emerging issue; online claim processes are difficult for those with low digital literacy or poor internet access.

Way Forward

The way forward for this scheme is to improve awareness, ensure transparency in claim data, simplify renewals, and provide better support through banks and local channels.

References

About the Contributor: Srishti Sinha is a student of sociology at Miranda House, University of Delhi, with a keen interest in gender, cultural representation, development, public policy, and research.

Acknowledgement: The author expresses her sincere gratitude to the IMPRI team and Ms. Aasthaba Jadeja for their invaluable guidance throughout the process.  

Disclaimer: All views expressed in the article belong solely to the author and not necessarily to the organisation.

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