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Difficulty: MediumSocial Sector Initiatives, Welfare Schemes, and Social Security Architecture

Consider the following statements regarding the Pradhan Mantri Jeevan Jyoti Bima Yojana (PMJJBY):
1. It provides a renewable life insurance cover of ₹2 lakh for death due to any cause to individuals in the age group of 18 to 50 years having a bank account.
2. It is structured as a Centrally Sponsored Scheme where the annual premium cost is shared between the Union and State Governments in a 60:40 ratio.
3. The scheme is offered and administered through the Life Insurance Corporation of India (LIC) and other participating life insurers in tie-up with banks.

Which of the statements given above are correct?

  1. 1 and 3 onlyAnswer
  2. B
    1 and 2 only
  3. C
    2 and 3 only
  4. D
    1, 2 and 3

Answer

The statement combination '1 and 3 only' is correct. Pradhan Mantri Jeevan Jyoti Bima Yojana (PMJJBY) offers a ₹2 lakh life insurance cover for individuals aged 18 to 50 years with a savings bank account, administered by LIC and partner life insurers. Statement 2 is incorrect because PMJJBY is a subscriber-funded social security scheme with automatic premium deduction, not a Centrally Sponsored cost-shared scheme.
The correct response identifies statements 1 and 3 as true. Pradhan Mantri Jeevan Jyoti Bima Yojana (PMJJBY) is a flagship social security life insurance scheme offering a ₹2 lakh cover for death due to any reason to individuals aged 18–50 years holding a savings bank account. It is implemented through LIC and other life insurers in partnership with participating banks. Statement 2 is false because the premium is paid entirely by the policyholder via auto-debit rather than through a 60:40 Centre-State funding split.

Step-by-Step Solution

1
Evaluate Statement 1 regarding target beneficiary age limit and insurance coverage.
PMJJBY is available to people in the age group 18 to 50 years who have a bank account and consent to auto-debit. It provides a risk coverage of ₹2 lakh in case of death due to any reason. Statement 1 is correct.
Verifying basic eligibility conditions and policy coverage payout.
2
Evaluate Statement 2 regarding funding architecture and central/state share.
PMJJBY is a voluntary social security scheme funded directly by the subscriber through auto-debit from their bank account. It is not a Centrally Sponsored Scheme with a 60:40 budgetary sharing ratio. Statement 2 is incorrect.
Distinguishing between subscriber-funded micro-insurance schemes and budgetary fiscal grant schemes.
3
Evaluate Statement 3 regarding nodal implementing agencies and financial institutions.
The scheme is offered through the Life Insurance Corporation (LIC) and other life insurance companies that tie up with participating banks to administer subscriber enrollment and claims. Statement 3 is correct.
Checking the administrative and operational delivery architecture.

Key Concept

Pradhan Mantri Jeevan Jyoti Bima Yojana (PMJJBY) Eligibility and Financial Architecture
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Topics

Social Sector Initiatives, Welfare Schemes, and Social Security Architecture