The Pradhan Mantri Jan Dhan Yojana (PMJDY) completed nine years of implementation on Monday, August 28, 2023. Launched by Prime Minister Narendra Modi in 2014, the scheme’s main purpose was to extend access to various financial services including credit, pension, banking, savings, deposits, and even insurance to the marginalised segments of society, especially to those coming from the weaker sections and low-income groups.
According to Finance Minister Nirmala Sitharaman under the PMJDY scheme more than 50 crore people have been brought into the formal banking system through the opening of Jan Dhan Accounts. Among these accounts, approximately 55.5 per cent belong to women and 67 per cent have been opened in rural and semi-urban areas. The cumulative deposits in these accounts surpass Rs 2 lakh crore.
Furthermore, about 34 crore RuPay cards have been issued to these accounts without charge, which also provides for a Rs 2 lakh accident insurance cover.
Insurance benefits for Jan Dhan account holders
The PMJDY scheme also offers insurance coverage to account holders including accident protection of up to Rs 2,00,000 and life insurance coverage of Rs 30,000. All the Jan Dhan accounts, which were opened between August 15, 2014, and January 31, 2015, are eligible for insurance coverage.
These benefits have expanded over time and now the free accidental insurance cover on RuPay cards has increased from Rs 1 lakh to Rs 2 lakh for PMJDY accounts opened after August 28, 2018.
Eligibility for PMJDY insurance cover
1. Those willing to receive insurance coverage under the Pradhan Mantri Jan Dhan Yojana should be the head of the family or the earning member of the family.
2. He/She should be in the age group of 18-59.
3. In case the earning member is aged 60 or above, the second earning person becomes eligible for the PMJDY scheme.
4. The individual must have a RuPay Card and Biometric enabled KYC for the bank account should have been completed.
According to the government, all eligible PMJDY account holders can avail an insurance coverage under the Pradhan Mantri Suraksha Bima Yojana (PMSBY) and Pradhan Mantri Jeevan Jyoti Bima Yojana (PMJJBY).
