F.No.H-12011/2/2015-Ins.II Government of India Ministry of Finance Department of Financial Services 2nd Floor, Jeevan Deep Building, 10, Parliament Street, New Delhi, Dated: 12th June, 2018 To Chairman, LIC of India, Chairmen / CEOs of Banks and Life Insurance Companies Chairman, IBA, Secretary General, Life Insurance Council, Re: Payment of pro-rata premium for enrolment under PMJJBY-reg. This has reference to the decisions taken in the meeting to review the performance of PMJJBY and PMSBY on 02.05.2018 and further to that LIC’s letter dated 29.05.2018 on the captioned subject. 2. In order to encourage eligible and potential account holders to join PMJJBY at a later stage (those who are enrolling after August, 31st in any policy year -1st June to 31st May) the following modifications in the PMJJBY scheme have been suggested: i. Inorder to encourage eligible account holders to join the scheme at a later stage payment of pro-rata premium for enrolment under PMJJBY would be allowed, with the minimum premium of Rs 86/- for one quarter required to be paid even if a person enrolls under the scheme one or two months before the end of the policy year (ie. if he enrolls in March, April or May), Thus, if the enrolment takes place during the months of ~ a. June, July & August —Annual premium of Rs. 330/- is payable b. September, October & November -3 quarters of premium @ %86.00 i.e Rs. 258/- is payable. c. December, January & February - 2 quarters of premium @ 886.00 ie. Rs. 172-is payable. d. March, April & May — 1 Qly premium @ 286.00 is payable. ii. Lien period of 45 days shall be applicable from date of enrollment. TASughil, In case of payment of pro-rata premium, the administrative charges payable to Banks (which is currently Rs 11/- per subscriber per annum for premium of Rs. 330/-) shall also be paid on pro-rata basis (i.e. for Qly premium of Rs.86/-, bank will retain an amount of Rs. 3.50, for 2 quarters of premium of Rs. 172/-, bank will retain an amount of Rs. 7/- and for 3 quarters of premium of Rs. 268/-, bank will retain an amount of Rs. 10.50). iv. In case of payment of pro-rata premium, the commission charges payable to a BC/Micro/Corporate agent (currently @ Rs. 30/- per annum per member) would also be payable on pro-rata basis (i.e. for Qly premium of Rs.86/-, it would be Rs. 7.50, for 2 quarters of premium of Rs. 172/-, it would be Rs. 15/- and for 3 quarters of premium of Rs. 258/-, it would be Rs. 22.50). v. Full year’s premium @ Rs 330/- would be payable at the time of renewal under the scheme and pro-rata payment would not be allowed. vi. The proposed changes in the scheme features are subject to approval by IRDAI. In this regard, LIC of India has already obtained approval of IRDAI on the above suggested modifications. 3. Accordingly, all the other Life Insurers implementing PMJJBY are advised to implement the above mentioned changes in the scheme (PMJJBY), with the approval of IRDAI. Banks are also advised to do the needful for smooth implementation of the said changes in the scheme. Yours faithfully, Parsing tt (Mritunjay Singh) Under Secretary to the Govt. of India Tel. 011-23748789