Difference between PMJJBY and PMSBY UPSC Notes PDF Download

Pradhan Mantri Suraksha Bima Yojana (PMSBY) covers accidental death and disability. On the other hand, Pradhan Mantri Jeevan Jyoti Bima Yojana is a 1-year life insurance policy that uses an annual minimum premium. The key difference between PMJJBY and PMSBY schemes is that PMSBY provides coverage for Accident Deaths. In contrast, PMJJBY provides Life Coverage in case of death for whatever reason. Both schemes are especially advantageous to the poorer parts of society because they provide very low cost coverage. All Indian citizens, regardless of their wealth, are eligible for both the PMSBY and PMJJBY Schemes. It is quite simple to apply for the schemes; all that is required is to complete a form. 

The topic Difference between PMSBY and PMJJBY covers a significant part of the Economy subject in the General Studies Paper-3 syllabus and current events of national importance in UPSC prelims.

In this article on the Difference between PMJJBY and PMSBY, we will learn more about the PMSBY and PMJJBY schemes. Study major topics of the Indian Economy from the perspective of UPSC Exams. 

Difference between PMJJBY and PMSBY

Here is a detailed table highlighting the key differences between Pradhan Mantri Jeevan Jyoti Bima Yojana (PMJJBY) and Pradhan Mantri Suraksha Bima Yojana (PMSBY):

Read the article on the Janani Suraksha Yojana!

What is Pradhan Mantri Suraksha Bima Yojana (PMSBY)?

Pradhan Mantri Suraksha Bima Yojana (PMSBY) is a government-backed accident insurance scheme launched in 2015. It provides accidental death and disability cover to Indian citizens between the ages of 18 to 70 years. The scheme is offered by public and private sector banks and other financial institutions.

Source: PIB India

The key features of PMSBY are:

• Coverage: The scheme provides a coverage of ₹2 lakhs in case of accidental death or permanent total disability, and ₹1 lakh in case of permanent partial disability. This coverage is provided to the subscriber in the event of an accident leading to death or disability.
• Premium: The annual premium for the scheme is just ₹12, which is automatically debited from the subscriber's bank account. This premium is extremely affordable, making the scheme accessible to a wide range of individuals.
• Eligibility: Indian citizens between the ages of 18 to 70 years with a bank account are eligible to enroll in the scheme. This broad age range ensures that individuals of various ages can avail the benefits of the scheme.
• Enrollment: Enrollment in PMSBY is automatic and renewable unless the subscriber opts out. This ensures that eligible individuals are automatically enrolled, increasing the scheme's reach and coverage.
• Claims: In the event of an accident leading to death or disability, the nominee(s) or the subscriber can file a claim with the bank. The bank then processes the claim and facilitates the lump sum payment to the beneficiary.

Read the article on the Rashtriya Swasthya Bima Yojana!

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

Pradhan Mantri Jeevan Jyoti Bima Yojana (PMJJBY) is a government-backed life insurance scheme launched in 2015. It provides life cover to Indian citizens between the ages of 18 to 50 years.

Source: Ministry of Finance

The key features of PMJJBY are:

• Coverage: The scheme provides a coverage of ₹2 lakhs in case of the death of the subscriber, regardless of the cause (natural or accidental). This lump sum payment is made to the nominee(s) of the deceased subscriber.
• Premium: The annual premium for the scheme is ₹330, which is automatically debited from the subscriber's bank account. This premium is higher than that of PMSBY, reflecting the broader coverage provided by the life insurance scheme.
• Eligibility: Indian citizens between the ages of 18 to 50 years with a bank account are eligible to enroll in the scheme. This age range ensures that the scheme caters to a significant portion of the working population.
• Enrollment: Enrollment in PMJJBY is automatic and renewable unless the subscriber opts out. This default enrollment mechanism helps in maximizing the scheme's reach and coverage.
• Claims: In the event of the death of the subscriber, the nominee(s) can file a claim with the bank. The bank then processes the claim and facilitates the lump sum payment to the beneficiary.

Check the details on the Economy Notes Here.

Similarities between PMSBY and PMJJBY

Pradhan Mantri Suraksha Bima Yojana (PMSBY) and Pradhan Mantri Jeevan Jyoti Bima Yojana (PMJJBY) are both government-backed insurance schemes aimed at providing affordable insurance coverage to individuals in India. Some of the other similarities between PMSBY and PMJJBY include the following:

• Both of these programs are available through both commercial and public banks.
• Participants in these programs can receive a maximum sum of ₹2 lakhs.
• To enroll in these programs, individuals must hold a savings account.
• The plan's premium is automatically deducted annually from the corresponding savings account using the "auto-debit" facility.
• Both policies are valid from June 1 to May 31 of the following year.
• The minimum entry age for the program is 18 years.
• Coverage automatically ceases when the covered person reaches the maximum age the program allows.
• Premium payments for the policy offer tax benefits.
• If the insured cannot pay the premium, the policies do not lapse.
• The insurance policy will expire if there is insufficient money in the affiliated bank. However, the insured can reinstate the plan by paying the remaining amount.
• Both policies involve minimal paperwork.
• In the event of the policyholder's death, beneficiaries receive the promised sum.

Practice the Multiple Choice Questions on Exclusive Economic Zone Here!

In this article, we analyse the difference between PMJJBY and PMSBY for the UPSC Exam. To study more topics from Indian Economy for UPSC, download the Testbook App now!