Pradhan Mantri Vaya Vandana Yojana (PMVVY) for Senior citizens aged 60 years and above.
Pradhan Mantri Vaya Vandana Yojana Plan No. 842 is a Government subsidized pension Scheme which shall provide an assured return of 8% p.a. payable monthly (i.e. equivalent to 8.30% p.a.) on the pensioner surviving during the policy term of 10 years.
Pradhan Mantri Vaya Vandana Yojana (PMVVY) Plan No. 842 Benefits:
The benefits payable under Pradhan Mantri Vaya Vandana Yojana plan are as under:Pension Payment :
On survival of the Pensioner during the policy term, Pension in arrears (at the end of each period as per mode chosen by the Pensioner) shall be payable.Death Benefit:
On death of the Pensioner during the policy term, the Purchase Price shall be refunded to the nominee/legal heirs.Pradhan Mantri Vaya Vandana Yojana Plan No. 842 Maturity Benefit:
On survival of the pensioner to the end of the policy term, Purchase price and the final pension instalment shall be payable.Eligibility Conditions and Restrictions:
Minimum Entry Age : [60] years (completed)
Maximum Entry Age : No limit
Policy Term : 10 Years
Minimum Pension : Rs. 1,000 per month / 3,000 per quarter / 6,000 per half year / 12,000 per year
Maximum Pension : Rs. 5,000 per month / 15,000 per quarter / 30,000 per half year / 60,000 per year
Ceiling of maximum pension is for a family as a whole i.e. total amount of pension under all
the policies allowed to a family under Pradhan Mantri Vaya Vandana Yojana plan shall not exceed the maximum pension limit.
The family for this purpose will comprise of pensioner, his/her spouse and dependants.
Mode of Pension Payment :
Mode of pension payment shall be monthly, quarterly, half-yearly or yearly.
The pension payment shall be through NEFT or Aadhaar Enabled Payment System.
The first instalment of pension shall be paid after 1 year, 6 months, 3 months, or 1 month from
the date of purchase of the same depending on the mode of pension payment i.e. yearly, half-
yearly, quarterly or monthly respectively.
Pension Rates:
The pension rates are not age specific and the rate of pension for Rs.1000/— purchase price fordifferent modes of pension payments are as below:
Yearly : Rs. 83.00 pa.
Half-yearly : Rs. 81.30 pa.
Quarterly : Rs. 80.50 pa.
Monthly : Rs. 80.00 p.a.
The pension instalment shall be rounded off to the nearest rupee.
Purchase Price:
Pradhan Mantri Vaya Vandana Yojana (PMVVY) plan can be purchased by payment of a lump sum Purchase Price. The pensioner has an
option to choose either the amount of pension or the Purchase Price.
For offline sale of policies, the Purchase Price payable shall be accepted by cheques/drafts
payable on the Branch of the Bank which is member of the Local / CTS/ Speed Clearing Center.
The minimum and maximum Purchase Price under different modes of pension will be as under:
Mode of Pension Minimum Purchase Price Maximum Purchase Price
Yearly Rs. 1,44,578/— Rs. 7,22,892/—
Half-yearly Rs. 1,47,601/— Rs. 7,38,007/—
Quarterly Rs. 1,49,068/— Rs. 7,45,342/—
Monthly Rs. 1,50,000/— Rs. 7,50,000/—
The purchase price shall be rounded off to the nearest rupee.
Rebates:
No rebate (including CEIS rebate) is available under this Pradhan Mantri Vaya Vandana Yojana.Taxes:
Statutory Taxes, if any, imposed on this Plan by the Government of India or any other
constitutional tax Authority of India shall be as per the Tax laws and the rate of tax as applicable
from time to time.
Surrender Value:
The scheme allows premature exit during the policy term under exceptional circumstances like
the Pensioner requiring money for the treatment of any critical/terminal illness of self or spouse.
The Surrender Value payable in such cases shall be 98% of Purchase Price.
Loan:
Loan facility is available after completion of 3 policy years. The maximum loan that can be
granted shall be 75% of the Purchase Price.
The rate of interest to be charged for loan amount would be determined from time to time by the
Corporation.
Loan interest will be recovered from pension amount payable under the policy. The Loan
interest will accrue as per the frequency of pension payment under the policy and it will be due
on the due date of pension. However, the loan outstanding shall be recovered from the claim
proceeds at the time of exit.
Suicide Clause:
There shall be no exclusion on count of suicide and full Purchase Price shall be payable.
Free Look Period :
If a policyholder is not satisfied with the "Terms and Conditions” of the policy, he/she may returnthe policy to the Corporation within 15 days (30 days if this policy is purchased online) from the
date of receipt of the policy.
The amount to be refunded within free look period shall be the Purchase Price deposited by the
policyholder after deducting the charges for Stamp duty and pension paid, if any.
Policy stamping :
Policy stamping charges will be at the rate of 20 paisa per thousand of Purchase Price underthis Plan.
Reinsurance:
No reinsurance is required for policies taken under Pradhan Mantri Vaya Vandana Yojana plan.
Assignments/Nominations
Assignment as per section 38 of the insurance Act, 1938 as amended from time to time shall beallowed in favour of HO of india only, if pensioner opts for loan under the policy.
Nomination by the pensioner is required as per Section 39 of the insurance Act, 1938, as
amended from time to time.
The notice of nomination or change of nomination should be submitted for registration to the
office of the Corporation, where the policy is serviced. In registering nomination the Corporation
does not accept any responsibility or express any opinion as to its validity or legal effect.
Pradhan Mantri Vaya Vandana Yojana - Proposal Form 842
Normal requirements for claim:
All the claim payments under this plan shall be paid through NEFT/ Aadhaar Enabled Payment
System. Other requirements are as under:
For benefit payable on death of the Pensioner:
The normal documents which the claimant shall submit while lodging the claim in case of death
of the Pensioner shall be claim forms, as prescribed by the Corporation, accompanied with
original policy document, proof of title, proof of death, to the satisfaction of the Corporation. if
the age is not admitted under the policy, the proof of age of the Pensioner shall also be
submitted.
For pension payments:
The Pensioner shall submit the Life Certificate in the proforma of the Corporation or online
“Jeevan Pramaan” as enabled by Corporation in this regard at the time intervals as prescribed
from time to time. The pension payments shall be released only on receipt of the Life Certificate.
For benefit payable on Surrender:
The Pensioner shall submit the discharge form along with the original policy document, proof ofmedical treatment of self/spouse and proof of age, if the age is not admitted earlier.
For benefit payable on Maturity:
The Pensioner shall submit the discharge form along with the original policy document andproof of age, if the age is not admitted earlier.