Reserve Bank of India issued a circular no. 20 dated June 30 2016 about no claim will be entertained in case of death within 45 days of issuing of policy of Pradhan Mantri Jeewan Jyoyi Bima Yojana. Full circular is as under.
Please refer to our circular DCBR. BPD(PCB)Cir.No.8/12.05.001/2014-15 dated May 5, 2015 on modalities for Implementation of Pradhan Mantri Jeevan Jyoti Bima Yojana (PMJJBY) and Pradhan Mantri Suraksha Bima Yojana (PMSBY).
2. The Rules for Pradhan Mantri Jeevan Jyoti Bima Yojana (PMJJBY) have since been reviewed by the Government of India and it has been decided by the Competent Authority to incorporate a lien clause in the rules of PMJJBY with effect from June 1, 2016 whereby claims for deaths which occur during the first 45 days from the date of enrolment will not be paid, effectively meaning that the risk cover will commence only after the completion of 45 days from the date of enrolment into the scheme by the member. However, deaths due to accidents will be exempt from the Lien Clause.
3. All Primary (Urban) Co-operative Banks are requested to initiate necessary action to implement the above-mentioned amendment.