+

“PRADHAN MANTRI JEEVAN JYOTI BIMA YOJNA:

EXPERIENCES FROM POST OFFICE, ITANAGAR, ARUNACHAL
PRADESH”
A
PROJECT REPORT SUBMITTED TO THE DEPARTMENT OF COMMERCE
DON BOSCO COLLEGE JOLLANG ITANAGAR ON THE BASIS OF INTERNSHIP PROGRAMME
AT
POST OFFICE, ITANAGAR, FOR THE FULFILLMENT OF BACHELOR DEGREEE IN COMMERCE

UNDER THE SUPERVISION OF

MR. TENZING NORBU (INTERNAL SUPERVISOR)
ASSISTANT PROFESSOR,
DEPARTMENT OF COMMERCE,
DON BOSCO COLLEGE, JOLLANG, ITANAGAR,
&
MR. TENZIN GYATSO
B.COM VI SEMESTER
DEPARTMENT OF COMMERCE
DON BOSCO COLLEGE, JOLLANG, ITANAGAR,
ARUNACHAL PRADESH -791113
SESSION-JANUARY TO JUNE
Page | 1
 CERTIFICATE
Dated:

This is to certify that Mr. Tenzin Gyatso has joined and worked as intern in our organisation for one
week on the project work titled Pradhan mantra jiving Jyoti bema yoga towards the fulfilment of the
requirements of degree of Bachelor in Commerce, Don Bosco College, Jollang, Itanagar, and
Arunachal Pradesh. During the period of his internship, he was found sincere, hardworking and
disciplined.

We wish him every success in life

Sign of the head organisation

with Seal

Page | 2
 Dept of Commerce
Mr. Tenzin Gyatso B.com Don Bosco College, Jollang
Student Itanagar, Arunachal Pradesh

` DECLARATION
I do hereby declare that the Project Report entitled Pradhan Mantri Jeevan Jyoti Bima Yojna
towards the fulfilment of the requirements of Bachelor degree in Commerce at Don Bosco College,
Itanagar ,and Arunachal Pradesh has been written and submitted by me. It is an original work carried
out by me under the guidance of Mr.Ashish kumar Singh.This work has not been previously
submitted to any other Universities or Institution for obtaining any degree .

Date:
Place: (Name & Sign of the student)

Page | 3
 ACKNOWLEDGEMENT

Perseverance, inspiration and motivation have played a great role in tht success of any venture. It
would be incomplete to submit this report without acknowledging the people behind this endeavour
and without this report without acknowledging the people behind this endeavour and without whose
support I wouldn’t have able to achieve this.

It gives me immense pleasure to express our gratitude to everyone who shared with me their precious
time and effort during this report.

A mammoth job like this calls for both intellectual nourishment and encourage. I would like to thank;

1. SUBRATA DAS, Superintendent of Post Office

2. M.R.DEORI, Post Master
3. GANESH THAPA, Branch Post Master
4. ASHISH KUMAR SINGH

Page | 4
 CONTENTS

TITLE PG NO.
CHAPTER 1 6-7
CHAPTER 2 8-13
CHAPTER 3: ORGANISATIONAL STRUCTURE 14-22
CHAPTER 4:PRADHAN MANTRI JEEVAN JYOTI BIMA YOJNA(PMJJBY) 23-35
CHAPTER 5:REFLECTIVE JOURNAL ENTRIES 36-37
REFRENCES 38
ANNEXURE 39

Page | 5
 CHAPTER ONE

PLAN OF INTERNSHIP PROOGRAM

INTRODUCTION
The Department of Posts, with its network of 1,54,939 Post Offices, is the largest postal network in
the world. In order to explore the potential & ideas available with the young generation in the field of
Technology, Marketing, Social Media, Banking, Insurance, Public Administration and Management
spheres etc, Department intends to provide internship programme and fellowships.

Interaction with young scholars will provide new ideas and research support from the field of
Academics. At the same time, it will provide an opportunity to young scholars to contribute to the
Department and provide an insight into working of the Government.

Several academic institutions and young scholars have expressed a desire to contribute to the
Department. The Department of Posts is of the view that an Internship Programme will ensure
interaction of the Department with Young Indian scholars with sound academic background from
reputed Institutions in the country and will also allow them to understand the postal industry. This
programme seeks to engage students pursuing Under Graduate/Graduate/Post Graduate Degrees from
recognized University/Institution within India as “Interns”. These interns shall be given exposure
through various Circles/Divisions of Postal Directorate. A list of domain/areas for which Internship is
invited is enclosed as Annexure ‘A’. For the “interns” the exposure to the functioning of the Indian
Government may be an add-on in furthering their future interests.

Planning for Internship

Step 1 :- In first step we got from Teacher regarding Internship program for Banking and Insurance
paper.

Step 2:- Secondly 51 student of B.Com 6th semester were divided into five group , each group were
allotted one faculty member of commerce department of Don Bosco College as a supervisor .

Page | 6
Step 3:- After division of group supervisor held meeting regarding planning internship program.

Step 4 :- Selection of Topic for internship in consultation with the internal supervisor

Step 5:- Procurement of the Bonafide letter from college principal of Don Bosco College. Jollang
Itanagar Arunachal Pradesh.

Step 6 :- Finalisation of the Organisation (Post Office Bank tinali ,Itanagar Arunchal Pradesh)

CONCLUSION

I can honestly say that my time spent interning with the India Post resulted in one of the best
summers of my life.  Not only did I gain practical skills but I also had the opportunity to meet many
fantastic people. The atmosphere at the Bank Tinali office was always welcoming which made me
feel right at home. Additionally, I felt like I was able to contribute to the organization by assisting and
working on projects throughout the summer. In addition to these projects, I also helped many of the
staffs with document organization, trial balance reviews, and many other day-to-day needs.

While I was able to learn a lot from normal office life, my most memorable days was the one were
we and some staff sat and have cup of tea. Enjoying tea and discussing internship progression at the
same time our life story a bit. This was great experience to interact with everyone in an informal
setting.

Overall, my internship at the Post Office has been a success. I was able to gain practical skills, work
in a fantastic environment, and make connections that will last a lifetime. I could not be more
thankful.

Page | 7
 CHAPTER TWO

OVERVIEW OF THE ORGANIZATION (POST OFFICE)

INTRODUCTION

India Post previously known as Department of Post, is a government-operated postal system in India,

which is under the jurisdiction of Ministry of Communications. Generally called "the Post Office" in
India, it is the most widely distributed postal system in the world. Warren Hastings had taken
initiative under East India Company to start the Postal Service in the country in 1788. It was initially
established under the name "Company Mail". It was later modified into a service under the "Crown"
in 1854 by Lord Dalhousie. Dalhousie introduced uniform postage rates (universal service) and
helped to pass the India Post Office Act 1854 which significantly improved upon 1837 Post Office
act which had introduced regular post offices in India. It created the position Director General of Post
for the whole country.

It is involved in delivering mail (post), remitting money by money orders, accepting deposits under
Small Savings Schemes, providing life insurance coverage under Postal Life Insurance (PLI) and
Rural Postal Life Insurance (RPLI) and providing retail services like bill collection, sale of forms, etc.
The DoP also acts as an agent for the Indian government in discharging other services for citizens
such as old age pension payments and Mahatma Gandhi National Rural Employment Guarantee
Scheme (MGNREGS) wage disbursement with 154,965 post offices (as on 31.03.2017), India Post
has the most widely distributed postal network in the world.

The country has been divided into 23 postal circles, each circle headed by a Chief Postmaster
General. Each circle is divided into regions, headed by a Postmaster General and comprising field
units known as Divisions. These divisions are further divided into subdivisions. In addition to the 23
circles, there is a base circle to provide postal services to the Armed Forces of India headed by a

Page | 8
Director General. One of the highest post offices in the world is in  Sikkim, Himachal Pradesh
operated by India Post at an altitude of 14,567 ft (4,440 m).

BRIEF HISTORY OF THE POST OFFICE

Posts and the British Raj (1858–1947)

The British Raj was instituted in 1858, when the rule of the East India Company was transferred to
the Crown.

A number of acts were enacted during the British Raj to expand and regulate posts and telegraphs
service:

 The Government Savings Bank Act, 1873 (5 of 1873), passed by the legislature 28 January
1873, was enacted in 1881. On 1 April 1882, Post Office Savings Banks opened throughout India
(except in the Bombay Presidency). In Madras Presidency, it was limited; in the Bengal
Presidency, no POSBs were established in Calcutta or Howrah.
 Postal life insurance began on 1 February 1884 as a welfare measure for the employees of the
Posts & Telegraphs Department as Government of India dispatch No. 299 dated 18 October 1882
to the Secretary of State.
 The Indian Telegraph Act, 1885
 The Indian Post Office Act, 1898, passed by the legislature on 22 March 1898, became
effective on 1 July 1898 regulating postal service. It was preceded by Act III of 1882 and Act
XVI of 1896.
 The Indian Wireless Telegraphy Act, 1933

After independence in 1947

Since India became independent in 1947, the postal service continues to function on a nationwide
basis, providing a variety of services. The structure of the organization has the directorate at its apex;
below it are circle offices, regional offices, the superintendent's offices, head post offices, sub-post
offices and branch offices. In April 1959, the Indian Postal Department adopted the motto "Service
before help"; it revised its logo in September 2008.
Page | 9
The number of post offices was 23,344 when India became independent in 1947 and these were
primarily in urban areas. The number increased to 155,015 in 2016 and 90% of these were in rural
areas.

POLICY OF THE POST OFFICE

1. Army Postal Service

The Army Postal Service (APS) functions as a government-operated military mail system in India. A
primary feature of Army Postal Service systems is that normally they are subsidized to ensure that
military mail posted between duty stations abroad and the home country (or vice versa) does not cost
the sender any more than normal domestic mail traffic. In some cases, Indian military personnel in a
combat zone may post letters and/or packages to the home country for free, while in others, senders
located in a specific overseas area may send military mail to another military recipient, also located in
the same overseas area, without charge.

2. Electronic Indian Postal Order

The Electronic Indian Postal Order (e-IPO) was introduced on 22 March 2013, initially only for
citizens living abroad. The postal orders can be used for online payment of fees for access to
information under the Right to Information Act, 2005. The service was expanded to include all Indian
citizens on 14 February 2014.

3. Postal Life insurance

Postal Life Insurance (PLI) was introduced on 1 February 1884 with the express approval of the
Secretary of State (for India) to Her Majesty, the Queen Empress of India. It was essentially a welfare
scheme for the benefit of Postal employees in 1884 and later extended to the employees of Telegraph
Department in 1888. In 1894, PLI extended insurance cover to female employees of P & T
Department at a time when no other insurance company covered female lives. It is the oldest life
insurer in this country. There was over 6.4 million policies active as on 31 March 2015 with a sum
assured of ₹130,745 crore (US$18 billion). Premium income of PLI for the year 2014-15
was ₹6,053.2 crore (US$850 million). It was extended to all rural residents on 24 March 1995.

Policies for government employees include Santhosh (endowment assurance), Suraksha (whole-life

assurance), Suvidha (convertible whole-life assurance), Sumangal (anticipated endowment policy)
and Yugal Suraksha (joint life endowment assurance). India Post started Rural Postal Life Insurance
Page | 10
(RPLI) for the rural public in 1995. RPLI plans include Gram Santosh (endowment assurance), Gram
Suraksha (whole-life assurance), Gram Suvidha (convertible whole-life assurance), Gram
Sumangal (anticipated endowment assurance) and Gram Priya.

4. Postal savings

The post office offers a number of savings plans, including recurring deposit accounts, Sukanya

Samriddhi Account (SSA), National Savings Certificates (NSC), Kisan Vikas Patra (KVP), the Public
Provident Fund, savings-bank accounts, monthly-income plans, senior-citizens' savings plans and
time-deposit accounts.

5. Banking

In 2013 it was revealed that the Indian postal service had formulated plans to enter the banking
industry after RBI guidelines for the issuance of new banking licenses were released. [40] Eventually
they are planning to open a Post Bank of India, an independent banking service.

As of 29 February 2016, 18,231 post offices are utilizing Core Banking Solutions (CBS). ATMs are
installed at 576 Post Office locations and debit cards issued to Post Office Savings Bank
customers. Core Insurance Solution (CIS) for Postal Life Insurance (PLI) is rolled out in 808 head
post offices and corresponding 24,000+ sub post offices. In September 2017, it was announced that
by 2018 all of the 1.55 lakh post offices, every postman and grameen dak sevak (postmaster) will
accept all payment options that the India Post Payments Bank (IPPB) plans to provide.

On 1 September 2018 the India Post Payments Bank was inaugurated by prime minister Narendra
Modi.

6. Data collection

A collaboration between the Ministry of Statistics and Programme Implementation (MoSPI) and the

Department of Posts has enabled the computation of consumer-price indices for rural areas. These
statistics were previously unobtainable, due to problems of remoteness and scale. The agreement
authorises the postal service to collect data on prices paid for selected consumer goods. In February
2011, MoSPI published its first Consumer Price Index (CPI) and All-India Consumer Price Index.

Page | 11
The information has since been published monthly, based on data available from 1,181 villages
across the country.

7. E-commerce delivery

The boom in e-commerce and the surging number of cash-on-delivery consignments has led India
Post to partner with major e-commerce portals for delivering pre-paid as well as cash on
delivery (COD) parcels. According to the Minister for Communications and Information
Technology, Ravi Shankar Prasad, revenue of India Post from such deliveries would go up to ₹15
billion (US$210 million) in the year 2015–16.

8. Other services

Other services include:

 Post boxes and post bags for mail receipt

 Speed Post
 Identity cards for proof of residence
 India Post ATM
 RMS (Railway Mail Service)
 Post office Passport Seva Kendras (POPSK)
 Aadhaar Enrollment and Updation.
 Western Union.
 Postal Life Insurance and Rural Postal Life Insurance.
 Savings Bank (SB/RD/TD/MIS/SCSS/PPF/SSA)
 Savings Cash Certificates.
 India Post Bank( IPPB).
 Stamp Sales. Payments

CONCLUSION

Page | 12
For more than 150 years, the Department of Posts (DoP) has been the backbone of the country’s
communication and has played a crucial role in the country’s social economic development. It
touches the lives of Indian citizens in many ways: delivering mails, accepting deposits under Small
Savings Schemes, providing life insurance cover under Postal Life Insurance (PLI) and Rural Postal
Life Insurance (RPLI) and providing retail services like bill collection, sale of forms, etc. The DoP
also acts as an agent for Government of India in discharging other services for citizens such as
Mahatma Gandhi National Rural Employment Guarantee Scheme (MGNREGS) wage disbursement
and old age pension payments. With more than 1,55,000 post offices, the DoP has the most widely
distributed postal network in the world.

Page | 13
 CHAPTER THREE

ORGANIZATIONAL STRUCTURE

Directorate (New Delhi)

Circle Office (Shillong)

Postal Division (Arunachal Pradesh)

Head Post Office (ltanagar) 1

Sub Post office -49

Branch Post Office – 253

Department of Post Comes under Minister of Communication.

Page | 14
 Vision and Mission of Department of Post

Vision

India Post's products and services will be the customer's first choice

Mission

 To sustain its position as the largest postal network in the world touching the lives of every
citizen in the country.
 To provide mail parcel, money transfer, banking, insurance and retail services win speed and
reliability.
 To provide services to the customers on value-for-money basis.
 To ensure that the employees are proud to be its main strength and serve its Customers with a
human touch
 Continue to deliver social security services and to enable last mile connectivity as a
Government of India platform.

Core Values

We will maintain our iconic status as a unique and trusted national institution by;

 Always providing the human touch in all our interactions with society
 Being responsive and reliable
 Demonstrating the highest order of integrity, honesty, transparency and professionalism
 Discharging our responsibilities towards the society in an environment of deep trust, mutual
respect and a culture of service before self

Strategic Goals

 Achieve the long term goal of financial self-sufficiency by generating surpluses from services
(existing & new) outside our universal service obligation
 Develop, implement and operate a system of standards with accountability for performance
 Develop a scalable and flexible technology infrastructure to support our operations
Page | 15
  Be the preferred, trusted and reliable service partner for all customers
 Ensure that India Post acquires all required people capabilities to deliver its chosen services
portfolio
 Be the interface between citizens and the government

BRIEF ON ARUNACHAL PRADESH POSTAL DIVISION

Arunachal Pradesh is a hilly State with an area of 83,743 sq. km. Arunachal Pradesh as the sentinel in
the North Eastern part of India shares its international borders with Myanmar on the East, Bhutan in
the West and China (Tibet) on the Northern side. On the South, the State shares, its interstate
boundary with Assam and in the South East with Nagaland Since 1972 it was called NEFA and it was
under the administrative control of Central Govt with its HQ at Shillong On 20 Feb 1987 it achieved
the political milestone by attaining full-fledged Statehood At present the Sate is divided into 16
districts with population of 10,96,702 (2001 census).

Arunachal Pradesh Postal Division was created on 01.12.1972 with its head quarter at Dibrugarh in
Upper Assam. The Division was up-graded and is being headed by Director Postal Services since
26.05.1982

The Postal Division covering the above 16 Districts of the entire state is divided into following three
sub-divisions namely;

A. Arunachal Pradesh West Sub-Division with HQs at Itanagar. (ASP Sub-Division). The Sub-
Division covers six districts namely

IV. (a) Arunachal Pradesh Postal Division was created on 01.12.1972 with its head quarter at
Dibrugarh in Upper Assam. The Division was up-graded and being headed by Director Postal
Services (JAG) since 26.05.1982. The new division covered the whole areas of Arunachal Pradesh
under its revenue districts. The first Director was Shri I.Dewri, IPS. The Divisional HQ was shifted
from Dibrugarh to Itanagar on 16.12.1983 when Shri N.Thadou IPS was DPS.

Page | 16
 (6) The Division is divided into four sub-divisions

Name of the Sub Dn. Headquarters

(i) Bomdila Sub-Dn Bomdila

(ii) itanagar Sub-Dn Itanagar
(iii) Pasighat Sub-Dn Pasignar
(iv) Jairampur Sub Dn Jairampur

Post Offices: There are 301 Post Offices and 02 Franchise Outlet in the division as on
31.12.2015.

Head Post office 1

Mukhiya Dak Ghar 6
Departmental Sub Post offices 42
Extra Departmental Branch Pos 252
Panchayat Sanchar Sewa Kendras 00
Franchise Outlet 02
EDBO located in Arunachal but under
the account of other Division 2 (Namorah BO under Mijikajan
so and Dikalmukh BO under Borgan SO
both SO under Tezpur HOAssam Circle)

(d)Area served per POs (As on 31" Dec 2015) State of Arunachal Pradesh- 278.21 sq km,

(e) Population served by per POs State of Arunachal Pradesh - 4593.39 per POs

V. Classification of Post offices:

(a) Departmental POs.

SI.no Name of P Category Pin District

Page | 17
1. Along SO LSG MDG 791001 West Siang
2. Anini SO CL-III SO 792101 Dibang Valley
3. A P Secretariat SO CL-III SO 791111 Papum Pare
4. Banderdewa SO CL-IIISO(ND) 791123 Papum Pare
5. Basar SO CL-II SO 791101 West Siang
6. Bhalukpong SO CL-III SO 790114 West Kameng
7. Bomdila LSG MDG 790001 West kameng
8. Bordumsa CL-III SO 792056 Changlang
9. Changlang SO CL-II SO 792120 Changlang
10. Chowkham SO CL-III SO 792102 lohit
11. Daporijo CL-I SO 791122 upper subansiri
12. Deomali SO CL-III SO 792129 tirap
13. Dirang SO CL-III SO 790101 west kameng
14. Doimukh SO CL-III SO 791103 papum pare
15. Hayualiang CL-III SO 792104 anjaw
16. Hilltop SO CL-III SO 791112 east siang
17. Itanagar HO HSG-I HO 791111 papum pare
18. Jairampur SO CL-III SO 792121 changlang
19. Jang SO CL-III SO 790105 tawang
20. Kalaktang SO CL-III SO 790105 west kameng
21. Khonsa SO LSG MDG 792030 tirap
22. Kimin SO CL-III SO 790106 papum pare
23. Likabali SO CL-III SO 791125 West siang
24. Longding SO CL-III SO 792131 longding
25. Lumbu SO CL-III SO 792106 tawang
26. Mahadevpur SO CL-III SO 792105 lohit
27. Mebo SO CL-III SO 791105 east siang
28. Mechuka SO CL-III 791003 west siang
29. Miao OS CL-III 792122 changlang
30. Naharlagun SO CL-II 792103 lohit
31. Nampong SO CL-III 792123 papum pare
32. Namsai SO CL-II SO 791109 kurung kumey
Page | 18
33. Nirjuli SO CL-III SO 791102 east siang
34. Palin SO CL-II SO 790003 papum pare
35. Pasighat OS LSG SO 791102 lower subansiri
36. R K Mission SO CL-III 791123 west kameng
37. R N Project SO CL-III SO 791113 east kameng
38. Roing SO CL-III SO 790003 east kameng
39. Rupa SO LSG-III SO 790005 lohit
40. Seijosa SO CL-III SO 790103 tawang
41. Seppa SO CL-III SO 790302 west kameng
42. Sunpura SO CL-III SO 792111 lohit
43. Tawang SO CL-II SO 790104 tawang
44. Tenga market SO CL-III SO 790116 west kameng
45. Tezu SO CL-III SO 793521 lohit
46. Tuting SO CL-III SO 791105 upper siang
47. Vijoynagar SO CL-III 792055 chanlang
48. Yingkiong SO CL-III OS 791002 upper siang
49. Ziro SO LSG MDG 791120 lower subansiri

Dist wise Post office

Bomdila Sub Div Itanagar Sub Div Pasighat Sub Div Jairampur Sub Div
Tawang Dist Papum Pare Dist West Siang Dist Hayualing Dist
West kaameng Dist Kurung kumey Dist East Siang Dist Lohit Dist
East kameng Dist Lower Subansir Dist Upper Siang Dist Changlang Dist
Pakke kesang Dist Upper Subansir Dist Lower Siang Dist Tirap Dist
Kra Dadi Dist Dibang Valley Dist Namsai Dist
Kamle Dist Siang Dist Longding Dist
Lepa Rada Dist
Shi Yomo Dist

Sub Divsion wise PO

Page | 19
SI no Bomdila Sub Div Itanagar Sub Div Pasighat Sub Div Jairampur Sub
Div
So BO SO BO SO BO SO BO
1 TawangSO 05 Itanagar HO 00 LikabaliSO 02 Sunpura so 01
2 Lumla SO 02 RK mission 05 SbasarSO 05 TezuMDG 08
3 Jang SO 02 AP sect SO 00 Along MDG 17 Namsai SO 11
4 Dirang SO 05 Naharlagun 02 Mechuka SO 00 Chowkham 07
SO SO
5 Kalaktang SO 02 Nirjuli SO 00 Tuting SO 03 Mahadevpur 02
SO
6 Bomdila SO 05 Doimukh SO 04 Yingkiong 04 Bordumsa 05
SO SO
7 Rupa SO 01 Banderdewa 04 PasighatMDG 12 Changlang 07
SO SO
8 Tengamarket 03 Kimin SO 01 Hilltop SO 09 Miao SO 08
SO
9 Seijosa SO 00 RN Project 02 Toing SO 19 Nampong 00
SO SO
10 Seppa SO 08 ZIRO MDG 12 Anini SO 01 Jairampur 01
SO
11 Bhalpong SO 02 Palin SO 08 Mebo SO 06 Khonsa 12
MDGMDG
12 Daporijo SO 12 Longding 10
SO
13 01 Deomali SO 05
14 01 Vijoynagar 02
SO
15 Hayauliang 08
SO
Total 11 35 [ho+11so]12 52 11 78 15 87

NUMBER OF EMPLOYEES:

Page | 20
 EMPLOYEES OF HEAD POST OFFICE, BANK TANALI

ARUNACHAL PRADESH

POST NO. OF EMPLOYEES

POSTAL ASSISTANCE 18
POSTMAN 6
MTS (MULTI TASKING STAFF ) 6
POST MASTER 1

DIVISIONAL OFFICE

POST NO.OF EMPOLOYEES

SP (SUPERITENTDENT) 1

IPG (INSPECTOR OF PUBLIC 1

GRIEVANCES)
PA (POSTAL ASSISTANT) 10

CONCLUSION

The Department of Posts comes under the Ministry of Communications. The Postal Service Board,
the apex management body of the Department, comprises the Chairman and six Members. The six
Page | 21
members of the Board hold portfolios of Personnel, Operations, Technology, Postal Life Insurance,
Banking & DBT and Planning respectively. The Additional Secretary and Financial Advisor to the
Department is a permanent invitee to the Board. The Board is assisted by a senior staff officer of the
Directorate as Secretary to the Board. Deputy Directors General, Directors and Assistant Directors
General provide the necessary functional support for the Board at the Headquarters.

Page | 22
 CHAPTER FOUR

PRADHAN MANTRI JEEVAN JYOTI BIMA YOJNA, (PMJJBY)

INTRODUCTION

Human beings are surrounded with uneven bouncing risks, either life or property. Insurance
sector provides a strategic instrument to safeguard one or one’s family from any such
coverable risks, to avoid devastating future. Insurance is a kind of gambling in reverse – a
major form of risk spreading – one person’s risk which would be large, is spread around to
make it small for a large number of people.

In this process it broadly serves two purposes –

1. Provides social security net to people, and

2. Helps in nation-building by making available investible capital.

A considerable portion of India lives without insurance of any kind be it general or life.
According to a latest survey, only 28.80 crore people in India were covered under health
insurance with an approximately 17-18 percent of total and if we talk about life insurance less
than 45-50 percent of the population is insured, where majority of the non-insured people
normally belongs to rural areas, under privileged section, belonging to low income generation
group with less literacy rate. Interestingly, in context with developed countries, life insurance
coverage amounts to 92-95 percent.

As per the IRDAI Annual Report 2017-18, insurance sector in India is steadily increasing the
insurance penetration and density within the country. The life insurance penetration had gone
up from 2.15 percent in 2001 to 2.76 in the year 2017 whereas; the penetration of non-life
insurance sector in the country has gone up from 0.56 in 2001 to 0.93 in 2017. Currently,
there are 68 insurers operating in India; of which 24 are life insurers, 27 are general insurers,
6 are Standalone health insurers exclusively doing health insurance business and 11 are re-
insurers including foreign reinsurer’s branches and Lloyd’s India.

Page | 23
Objectives of the Study

This research paper will systematically, sophistically and synchronously study the role of
government in promoting life insurance sector in the context of New India with special
reference to urban area. Keeping in view the following logical objectives have been taken:-

a. To determine the role of PMJJBY in insurance penetration.

b. To analyse the current performance of PMJJBY.

c. To understand the factorial challenges of PMJJBY.

d. To explore the potentials of PMJJBY and PMSBY in the upcoming years.

Research Methodology

In keeping pace with the objectives of the study, following scientific procedures are adopted
for valid, reliable and accurate outcome of the study:-

A) Type of Research- The research design is mainly descriptive in nature followed by an

analytical analysis.

B) Source of Data- Extensive data has been collected from both primary and secondary
sources. For primary data, 130 highly classified respondents have been contacted through a
combined questionnaire and for secondary data, multiple RTIs, government publications,
IRDA’s annual reports, journals, newspapers, etc. are widely analysed and interpreted.

C) Sampling Technique- The researcher has utilized non-probability sampling technique in

general and quota sampling in particular. The total selected population is 130 and was
divided into four selected audience such as participative banks, participative public/private
insurance companies, academicians and graduated general public of urban areas.

Pradhan Mantri Jeevan Jyoti BimaYojna (PMJJBY): Pradhaan Mantri Jeevan

Jyoti Bima Yojna (PMJJBY) was launched on 09th May, 2015 to provide life insurance (term
policy) coverage to the insured at the event of his/her death due to any reason or permanent
disability. The Government of India showed its concern to the need of insurance in current
scenario and offered a renewable one-year term life cover to enhance insurance penetration in
the country, especially the poor and under privileged.

Page | 24
Objective:-To create a universal social security system in the country, targeted especially at
the poor and the underprivileged.

Age of the insured:-Any Indian resident within the age group of 18 to 50 are eligible to
subscribe for the scheme, provided that the individual has a saving bank account. They are
required to submit a self-declaration of good health with other required documents. This
policy ends once policyholder reaches age of 55 yrs. However, policy to be effective the
policyholder will have to keep renewing policy till that time.

Amount of Premium:-This policy requires a policy premium of Rs.330 per year. It will be
auto-debited from insured’s bank account annually or as per instructions.

Premium Appropriation:- As per the instructive guidelines of IRDA

a. Insurance Premium to LIC/other insurance company: Rs.289 per annum per member;

b. Reimbursement of Expenses to BC/Micro/Corporate/Agent: Rs.30 per annum per

member;

c. Reimbursement of Administrative expenses to participating Bank: Rs.11per annum per

member.

Sum Assured:-Provides a life cover of Rs. 2,00,000 in case of death of the insured due to
any reason Page Coverage Period:-This policy is valid for one year, starting from 01 June of
each year to 31 May of subsequent year.

Administrators:-These schemes are administered through LIC and private insurance

companies in tie-up banks several specified banks. Participating banks are free to engage any
such life insurance company for implementing the scheme for their subscribers.

The current union government is deriving congenial efforts to serve the unserved, secure the
unsecured and insure the uninsured through such easily affordable and accessible micro-
insurance schemes.

Features of Pradhan Mantri Jeevan Jyoti Bima Yojna

1. Enrolment Period: The enrolment period of Pradhan Mantri Jeevan Jyoti Bima
Yojna is 1st June of the subsequent year. During the enrolment period, the subscribers
need to enrol and provide, their auto-debit consent. In case the insurance the policy

Page | 25
 after 1st June, then they will have to pay the premium of the policy year as a lump sum
from the month of joining.
2. Coverage: The Pradhan mantra Jeevan Jyoti Bima Yojna offers coverage of Rs. 2
laky to the nominee of the scheme, in the event of the unfortunate demise of the
insured person. The coverage amount offered to the is tax free. The Pradhan Mantri
Jeevan Jyoti Bima Yojna offers a simple and hassle free claim process
3. Tenure: The Pradhan Mantri Jeevan Jyoti Bima Yojna provides coverage for a tenure
of 1 year from the date of signing. As term life insurance plan the insured person can
renew the PMJJBY every year up to the age of 55 yrs. In case the insured person
wants to discontinue the plan then he can do it by not renewing the plan. On the other
hand, the insured person can join the scheme anytime later by providing the health
certificate and paying the premium of the policy
4. Premium: The Pradhan Mantri Jeevan Jyoti Bima Yojna offers insurance at a
minimum premium rate of Rs.330 per lucrative option of investment for the low
income group individuals. The premium of policy remains the same for subscribers of
all age group between 18 years-50 years.

Tax-Benefit: The premium paid towards the PMJJBY scheme is applicable for tax
exemption under Section 80C of the Income Tax Act

Claim Settlement

The death claim will be settled by the respective Office of the Insurance Company concerned.
The process which is followed is given below:

Mutual fund investment

Steps to be taken by the Nominee

1.The nominee has to approach the bank where the member has the ‘savings bank account’
through which he/she was associated with PMJJBY. The nominee should have the death
certificate of the member.

Page | 26
2.Next, the nominee needs to collect the claim form and discharge receipt from the bank or
any other designated source like insurance company branches, hospitals, insurance agents,
etc.

3.Submit the duly filled claim form, death certificate, and discharge receipt along with a
Xerox copy of the cancelled cheque of the nominee’s bank account(if available) or the bank
account details to the bank wherein the member was having the ‘savings bank account’ of
PMJJBY.

Steps to be taken by the Bank

1.The bank has to check whether the cover for the said member was active on the date of the
member’s death, i.e., whether the premium for the said cover on Annual Renewal Date, i.e.
the 1st of June, prior to the member’s death, was deducted and remitted to the Insurance
Company concerned.

2.Next, the bank needs to verify the claim form and the nominee details from the records
available to them and fill in the relevant columns of the claim form.

3.Bank has to submit the below-given documents to the designated office of the insurance
company concerned:

4.Claim Form duly completed

5.Death certificate

6.Discharge Receipt

7.Photocopy of cancelled cheque of the nominee (if available).

8.The maximum time frame for the bank to forward the duly completed claim form to the
insurance company is 30 days from the submission of the claim to it.

Steps to be taken at the designated office of Insurance Company

1.Check if the Claim form is complete in all respects and all the relevant documents have
been attached to it. If not, contact the bank concerned.

2.If the claim is eligible in all respects, the designated office of the insurer will have to check
whether the member’s coverage is in force and no death claim settlement has been effected
for the member through any different account. In case any claim has been settled previously,
the nominee shall be informed accordingly with a copy marked to the bank.
Page | 27
3.If no claim has been settled for the said member, the mentioned payment will be released to
the nominee’s bank account, and an acknowledgment shall be sent to the nominee with a
copy marked to the bank.

4.The insurance company has 30 days from the receipt of the claim from the bank to approve
the claim and disburse money.

Pradhan Mantri Jeevan Jyoti Bima Yojna Benefits

1. PMJJBY provides a death coverage of Rs2,00,000 to the beneficiary of the policy in the
2. case of the sudden demise of the insured person.
3. As PMJJBY is a pure term insurance plan, it does not offer any maturity or surrender
benefit.
4. The premium paid towards the policy is eligible for tax benefits as under section 80C of
the Income Tax Act.

PMJJBY provides a risk coverage of 1 year. However, as this is renewable policy, it can be
renewed

Pradhan Mantri Jeevan Jyoti Bima Yojna Eligibility

The Eligibility Criteria of the policy are listed below:

 Any person who is between 18- 50 years old and has a savings account can enroll for
this scheme through the participating banks.
 One can join this scheme with only one saving bank account even if they have
multiple bank accounts
 To avail of the benefits offered by this policy, it is mandatory to link your Aadhar
card to the eligible/participatory bank account.
 Insurance buyers who join the scheme after the initial enrolment period, i.e., from the
31st of August 2015- the 30th of November 2015, must produce a self-attested
medical certificate proving that he/she is not suffering from any critical illness as
mentioned in the policy declaration form.

State wise enrolments and Claims details under PMJJBY

Page | 28
State Enrolments’ for the No. of claims No. of claims paid
scheme received (from (from 01.06.15 to
from(01.06.15 to 01.06.15 from 31.12.18)
31.12.18) 31.12.18)
Andaman &Nicobar 8715 37 37
Andhra Pradesh 2158451 13238 12577
Arunachal Pradesh 26573 132 111
Assam 449198 3793 3707
Bihar 951199 3793 3675
Chandigarh 63931 179 168
Chhattisgarh 843572 5703 5506
Dadra & Nagarhaveli 5317 41 40
Daman & Dui 4592 29 27
Delhi 1197689 3911 3732
Goa 80139 255 252
Gujarat 1539697 111299 10822
Haryana 471636 4175 3969
Himachal Pradesh 192771 1077 1021
Jammu & Kashmir 190736 594 587
Jharkhand 194686 1115 1076
Karnataka 2319053 14460 14166
Kerela 509915 1653 1539
Lakshadweep 4206 0 0
Madhya Pradesh 1061737 8753 8364
Maharashtra 6315093 23684 22656
Manipur 8998 190 185
Meghalaya 25988 129 124
Mizoram 41127 483 482
Nagaland 9140 82 81
Orissa 667949 42432 4100
Pudducherry 20560 228 222
Punjab 329442 2151 2064
Rajasthan 854307 7708 7185
Sikkim 9609 57 57
Tamil Nadu 1637225 6534 6298
Telangana 624030 9364 9263
Tripura 29909 384 375
Uttar Pradesh 1938430 15775 14731
Uttarakhand 164922 1369 1312
West Bengal 1049771 3885 3763

Page | 29
 Total 26000312 150379 144274

From the above table, obtained through a RTI filed by the researchers, it can be
logically traced that:-

1. Highest enrolments in Maharashtra.

2. Lowest enrolments in Lakshadweep.

3. 100 percent claim settlement ratio in Andaman and Nicobar.

4. Lakshadweep hasn’t received any claims.

5. Total Claims received to total enrolment ratio is 0.58%.

6. Claim Received to claims paid/ disbursed ratio is 95.94%.

7. In Manipur, the claim received to total enrolments ratio is highest and stands at 2.12%.

8. Insurance companies are in absolute profit.

Premium Payable for Pradhan Mantri Jeevan Jyoti Bima Yojana

(PMJJBY Scheme)

The basic premium amount for the PMJJBY scheme is INR 330 and reduces thereafter
based on the month of your enrollment. The amount is deducted directly from the
associated bank account in an auto-debit manner.

Entry Month Policy Period Premium Amount

June, July, and August 4 Quarters (complete policy period) INR 330 plus taxes (if any)

September, October, and November 3 Quarters INR 258 plus taxes (if any)

December, January, and February 2 Quarters INR 172 plus taxes (if any)

Page | 30
Entry Month Policy Period Premium Amount

March, April, and May 1 Quarter INR 86 plus taxes (if any)

Consider the following table for a better understanding of the same.

As of now, the auto-debit facility is the only available premium payment mode for the
PMJJBY scheme. The renewal time for the scheme is between May 25 and May 31, and
the amount will be debited directly from your bank account. However, this is unless the
policyholder has requested for the termination of the scheme with the respective bank.

The PMJJBY scheme offers a sum assured amount of INR 2 Lakh if you (the policyholder)
dies a premature death.

Eligibility Criteria

The minimum entry age of the

18 years
policy

The maximum entry age of the

50 years
policy

Maximum coverage age of the

55 years
policy

Policy Tenure 1 year

Bank Account Requirement Savings account mandatory for enrollment

Coverage period Begins from June 1 every year to May 31 of the next year

Page | 31
Eligibility Criteria

Sum assured amount INR 2 Lakh

Eligibility Criteria for PMJJBY Scheme

How to Enroll for Pradhan Mantri Jeevan Jyoti Bima Yojana

One can get PMJJBY via LIC or any other life insurance company in India. Also, many
banks have the facility for PMJJBY enrollment at its branches. Know that no matter how
many bank accounts you hold, you can enroll under this scheme with only a single
account. The scheme can be renewed every year, and the renewal date remains June 1 for
all the members. If you happen to quit the scheme for any reason, you can rejoin it by
paying the annual premium.

The enrollment process is quite simple –

1. Download the PMJJBY application form from

www.jansuraksha.gov.in/Forms-PMJJBY.aspx
The form is available in several languages, so choose the one that is convenient for
you.

2. Submit the duly filled form with your bank

3. Submit the necessary documents

4. Upon verification, you will be successfully registered under the scheme

Most banks also offer an SMS-based enrollment process. Check with your respective bank
for the details on the same and proceed with the application.

List of Banks Providing PMJJBY Scheme

The following is the list of banks in India that offer the PMJJBY scheme at their branches.

Page | 32
Bank Name

Allahabad Bank Corporation Bank Karur Vysya Bank Ltd State Bank of India

Kotak Mahindra Bank State Bank of

Andhra Bank Dena Bank
Ltd Mysore

State Bank of
Axis Bank Federal Bank Ltd Lakshmi Vilas Bank
Patiala

Oriental Bank of State Bank of

Bank of Baroda HDFC Bank Ltd
Commerce Travancore

Bank of India ICICI Bank Ltd Punjab & Sind Bank Syndicate Bank

Bank of
IDBI Bank Ltd Punjab National Bank UCO Bank
Maharashtra

Bhartiya Mahila
Indian Bank Ratnakar Bank Ltd Union Bank of India
Bank

United Bank of
Canara Bank Indian Overseas Bank South Indian Bank Ltd
India

Central Bank of State Bank of Bikaner

Induslnd Bank Ltd Vijaya Bank
India & Jaipur

City Union Bank Jammu & Kashmir State Bank of

Yes Bank Ltd
Ltd Bank Ltd Hyderabad

Conditions for Termination of Pradhan Mantri Jeevan Jyoti Bima Yojana

Page | 33
 The following are the termination conditions for the PMJJBY scheme –

 You (the account holder) attains the age of 55 years old

 Closure of the associated bank account or insufficient balance in the bank account

 In case of multiple coverages under the PMJJBY scheme, the cover will be restricted
to INR 2 lakh and other insurance covers will be terminated and premiums shall be forfeited

Additional Details of PMJJBY Scheme

A few other details that you need to know about the Pradhan Mantri Jeevan Jyoti Bima
Yojana plan are as follows.

 Upon enrolment, the policy has a 45 days cooling period after which the coverage
begins. However, the cooling period is exempted in case of accidental deaths, and the sum
assured is paid immediately.

 If the savings bank account linked to the plan is closed, it will lead to termination of
the policy.

 The Pradhan Mantri Jeevan Jyoti Bima Yojana plan is limited to only one policy per
policyholder. This is irrespective of the person having multiple saving bank accounts with
banks offering the scheme.

 The premium amount is deducted directly from the associated bank account between
May 25 and May 31 each year.

 In case the policy is terminated due to any given reason, it can be reinstated by paying
a full premium amount and proof of good health

 CONCLUSION

The Government of India is making efforts to provide financial and health security to the
poor and vulnerable families across the country.

The Pradhan Mantri Jeevan Jyoti Bima Yojana plan is one such great initiative. It offers
financial security to the family members in case of the insured individual’s death. That way,

Page | 34
the death benefit received by the family can be utilised until an alternate source of income is
generated

Page | 35
 CHAPTER FIVE
JOURNAL ENTRIES

INTRODUCTION

Internship at post office started at 19th of April and ended on 24th of April under the
supervision of our teachers and with assistant of Postal of Post office. Each day internees got
to learn about the organisation

Day 1 Interaction with PLI sector staff

Learning about PLI
GDS
Types of PLI
Bonus rates

Day 2 Interaction with postal assistant Mamu Doloi Das

Data Entry in PLI
RPLI
Knowing about PLI eligibility criteria

Day 3 Interaction with Postal assistant Mamu Doloi Das

Interaction with Postal assistant Mr. Ashish Kumar Singh
Briefly learning aboujt PMJJBY
Day 4 Intereaction with postal assistant: Goge Basar
Classes with all intern in assistance with P. A(Goge Basar)
Learning about the operation of post office
Public Grivences
Dealing with Public Grivences
Day 5 Interaction with Postal Assistant Mr. Ashish Kumar Singh
Requirements and eligibility criteria of PMJJBY
Learning how to claim insurance money
Day 6 Interaction with Postal Assistant Mr. Ashish Kumar Singh
Data collection
Learning about benefits of PMJJBY
Day 7 Interaction with Postal Assisant Mamu Doloi Das
Interaction with Postal Assistant Mr. Ashish Kumar Singh
Queries and Doubt Clearing Session with Mr. Ashish Kumar Sin’;’

DAYS LEARNING &ACTIVITIES

Page | 36
 CONCLUSION

As the days went on from the first day, activities and learning got more interesting.
Interaction with the postal assistant let internees know lot more about the organisation and
how the organisation work, from the policies of the organisation, employees of the
organisation, dealing with customer grievances, advertisement and to the customer
relationship management of post office.

REFRENCES

Page | 37
WEBSOURCES

Retrieved from: https://economictimes.indiatimes.com/wealth/insure/all-about-

pradhan-mantri-jeevan-jyoti-bima-yojana/articleshow/58907299.cms?from=mdr

https://www.policybazaar.com/pradhan-mantri-jeevan-jyoti-bima-yojana-pmjjby/

https://cleartax.in/s/pradhan-mantri-jeevan-jyoti-bima-yojana-pmjjby

https://en.wikipedia.org/wiki/India_Post

Page | 38
ANNEXURE

Page | 39
Page | 40