Janashree Bima Yojana Policy – Features & Benefits

Posted on: Aug 2, 2024 | 3 mins | Written by: HDFC ERGO Team

Janashree Bima Yojana Policy – Features & Benefits

India is the world’s most populous country, and a significant percentage of the population consists of workers who live below the poverty line. These workers are fundamental to the country’s economic growth. Keeping this in mind and to help the economically weaker section of society, the Indian Government collaborated with the Life Insurance Corporation of India and started the Janashree Bima Yojana Scheme in 2000. This scheme provides financial assistance to 45 different occupational groups. Read on to learn more about the Janashree Bima Yojana Scheme.

What is Janashree Bima Yojana?

The Janashree Bima Yojana, or JBY, is a life insurance scheme launched in the year 2000 by the Government of India in association with the Life Insurance Corporation of India. It was introduced to offer life insurance and financial protection to workers and other individuals with limited financial resources. The program covers around 45 categories of workers, including carpenters, fishermen, plantation workers, agriculturists, cobblers, construction workers, leather tannery workers, sheep breeders, forest workers, textile and handloom weavers, among others. The scheme extends coverage to both urban and rural residents living in poverty.

Key features of the Janashree Bima Yojana

The key features of the Janashree Bima Yojana are —

• Coverage:

The scheme is a collaborative effort of the Indian Government and the LIC of India. It offers coverage to workers living below or marginally above the poverty line. It offers life insurance to around 45 categories of workers and reduces their financial worries.

• Premium:

The premium per person is INR 200. The applicant, state government or the nodal agency pays around 50% of the premium, and the Social Security Fund pays the remaining 50%. Here, the nodal agencies may include NGOs, self-help groups, panchayats, or any other institutional agency.

• Female self-help groups:

The scheme also helps members of the female self-help groups. It provides them with INR 30,000 for one year for their children’s education.

• Scholarship for children:

The Janashree Bima Yojana also has a provision for children whose parents are covered under the scheme. It offers a scholarship of INR 600 to two children per household every six months. However, this benefit is available only to children enrolled in grades 11 and 12.

Eligibility criteria under Janashree Bima Yojana

The eligibility criteria for the Janashree Bima Yojana scheme are as follows:

• The age of the individual should be between 18 and 59 years.

• He/she should be either living below the poverty line or marginally above it.

• The minimum membership size is 25.

• Ideally, the individual should be a member of a nodal organisation or professional group.

Benefits of the scheme

The following are the benefits of the Janashree Bima Yojana Scheme:

1. In case of natural death of a member, the legal heir receives INR 30,000 from the scheme.

2. If a member dies in an accident, the scheme gives INR 75,000 to his/her legal heir.

3. If a member/beneficiary meets with an accident and suffers permanent total disability, the JBY scheme offers him/her a compensation of INR 75,000.

4. If a beneficiary loses more than one body part in an accident, the scheme offers the person a compensation of INR 75,000.

5. If a beneficiary loses a body part, such as an eye or a limb, and suffers partial disability, he/she will receive INR 37,500 from the scheme.

Special benefits of the scheme

The scheme also offers the following special benefits to women and children.

• Female critical illness (FCI) :

If a woman covered under the scheme gets diagnosed with a malignant tumour in the breast, ovaries, fallopian tubes, or any part of the reproductive system, she can claim INR 20,000 for her treatment. This benefit is similar to the benefit offered by critical illness health insurance plans.

• Scholarship for students:

The scheme also offers scholarships to children whose parents are members of the Janashree Bima Yojana Scheme. Up to two children per household can receive a scholarship of INR 600 every six months, provided they are in classes 11 or 12.

• Maternity benefits:

The scheme also provides maternity benefits to domestic workers covered under the scheme. The maximum benefit is INR 5,000 for each delivery and is applicable for up to 2 deliveries.

How to apply for Janashree Bima Yojana?

One can apply for the Janashree Bima Yojana Scheme through the nodal or self-help organisation he/she is a part of. The person can also apply for the scheme through any LIC office. Online application is not available for the Janashree Bima Yojana Scheme.

FAQs

1. What is the Janashree Bima Yojana Scheme?

The Janashree Bima Yojana Scheme is a special insurance cover for workers with limited financial resources. The scheme covers workers and their families and offers financial assistance in case of death, partial, or total disability of a member. The scheme also offers special benefits to women and children. It is a good option for workers who cannot afford health insurance plans for a family.

2. What is the coverage period of Janashree Bima Yojana?

The coverage period of this scheme is one year. Members can renew their coverage by paying premiums on time.

3. Can a senior citizen apply for Janashree Bima Yojana?

The scheme covers individuals aged between 18 and 59 years. Therefore, senior citizens cannot apply for the Janashree Bima Yojana Scheme.

4. Is the Janashree Bima Yojana Scheme the same as a life insurance policy?

No, Janashree Bima Yojana is different from a life insurance policy. While life insurance offers coverage to the family members of the deceased, Janashree Bima Yojana offers coverage in case of death as well as partial and permanent disability because of an accident.

5. Is the Janashree Bima Yojana Scheme GST-free?

Yes, the Janashree Bima Yojana Scheme is GST-free.

6. Can anyone apply for the scheme?

Workers in rural and urban areas living below or marginally above the poverty line can apply for the scheme. The scheme offers financial assistance to the covered members and their families in case of death or disability of the insured. It also helps women with the education of their children and critical illnesses.

Conclusion

To sum up, the Janashree Bima Yojana Scheme can benefit workers and their families living in poverty, especially during unexpected events like disablement or death. The scheme covers people for a nominal annual premium to encourage participation. Interested people can easily apply for the scheme through any LIC office, self-help group, or nodal agency they are part of. The scheme is an important initiative of the Government of India to ensure timely financial protection for people belonging to the underprivileged section of society.

Disclaimer: The above information is for illustrative purposes only. For more details, please refer to the policy wordings and prospectus before concluding the sales.

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