Navigating PMJJBY Claim Rejection Due to Account Closure: Insights and Experiences
Dealing with insurance claims can be challenging, especially when unforeseen issues arise. Recently, I encountered a situation where a life insurance claim under the Pradhan Mantri Jeevan Jyoti Bima Yojana (PMJJBY) was denied due to the closure of the policyholder’s bank account. I wanted to share this experience in case others face similar hurdles and to seek advice from the community.
The Background
My late father had a PMJJBY policy with State Bank of India (SBI), with the last premium paid in May 2020. Unfortunately, he passed away on May 22, 2021, within the policy’s coverage period, which was valid until May 31, 2021. It was only in June 2025 that we discovered the policy details through an acknowledgment slip.
The Issue
Upon approaching the bank to initiate a claim, SBI confirmed the policy was active but informed us they couldn’t process the claim. Their core issue was that the bank account linked to the policy had been closed in June 2021. Their CBS system displayed a “Record Not Found” message, rendering them unable to upload or process our claim.
Steps Taken
In pursuit of resolution, I’ve undertaken multiple approaches:
- Submitted a formal letter to the bank requesting claim processing
- Filed an RTI application with the SBI Bangalore Circle to seek clarity
- Visited the regional SBI Life office for direct assistance
- Reached out via email and social media (Twitter) to SBI Life and PMJJBY official channels
Despite these efforts, the responses have been somewhat uniform: the bank states they cannot upload the claim due to system restrictions, and the insurance company says they haven’t received the claim from the bank.
Key Questions and Concerns
- Has anyone faced a similar issue where a claim was rejected because the bank account was closed?
- Is it possible for SBI Life to process the claim manually if provided with a bank’s official letter stating the claim and related documents?
- Are there successful cases of delayed claims under such circumstances?
- What approaches or documentation have worked for others in similar situations?
Seeking Community Support
This experience underscores the importance of awareness about policy and account status during claim processing. If you or someone you know has encountered a similar situation, your insights could be invaluable. Any advice on how to facilitate manual claim processing or navigate this process would be
