How to claim Rs 2 lakh govt insurance against unfortunate Covid death

If you have lost a family member to COVID-19, there is a government insurance scheme that may make you eligible for Rs 2 lakh insurance amount.

Launched on May 9, 2015, Pradhan Mantri Jeevan Jyoti Bima Yojana (PMJJBY) offers Rs 2 lakh term insurance cover to bank account holders in the age group of 18 to 50 years. If your dear one whom you have lost had happened to buy this policy in the financial year 2020-21, the nominee/heir may apply for the claim.

The scheme is a one-year term insurance cover stretching from June 1 to May 31, renewable from year to year. It offers life insurance cover for death due to any cause. It means death due to COVID is covered. It also covers death due to murder and suicide.

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The premium payable is Rs 330 per annum for a cover of Rs 2 lakh, which is in addition to any policy that the policyholder may have held. The scheme is being offered by Life Insurance Corporation and all other life insurers who are willing to offer the product on similar terms with necessary approvals and tie up with banks for this purpose.

"The PMJJBY annual premium is Rs 330 per annum, and the coverage is purchased through the policyholder's bank account, therefore the claims need to be made through the same bank. Claims will only be entertained 45 days after enrolment. If the death is accidental, this requirement is dropped," says Adhil Shetty, CEO, BankBazaar.com.

There are some reports that the insurance claim has to be made within 30 days after the death of the insured person. However, one should not panic.

"Before making a claim, obtaining documents such as death certificate, cause of death, etc, may take several weeks, even months in some cases, therefore the claims process even in normal times may exceed 30 days. Therefore, the nominees need not panic and be in touch with their policyholder's bank about the claims. The claims process would require documents such as the duly filled claims form, death certificate, discharge receipt and cancelled cheque leaf, etc," he adds.

The banks have to forward duly completed claim form to the concerned insurance company within 30 days from the submission of the claim to it.

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Can you buy the policy now?

One can buy the policy any time during the year. The premium will be paid on pro-rata basis. This feature was allowed w.e.f. policy year 2018-19. Thus, if the enrolment takes place during the months of,

June, July & August - Annual premium of Rs 330 is payable

September, October and November - 3 quarters of premium at Rs 86; i.e. Rs. 258 is payable

December, January and February - 2 quarters of premium at Rs, 86 i.e. Rs 172 is payable

March, April and May - 1 quarterly premium at Rs 86 is payable

The full year's premium at Rs 330 would be payable at the time of renewal under the scheme.

As many as 10.27 crore people are enrolled in PMJJBY as on March 31, 2021. The government data says 2,50,351 claims were received in FY21, of which 2,34,905 claims were disbursed.

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