The Prime Minister, Shri Narendra Modi launched the Pradhan Mantri Suraksha Bima Yojana (PMSBY) scheme in 2015. A government-backed accident insurance scheme in India as part of the government's efforts to increase the penetration of insurance in the country.
Under the PMSBY, individuals between the ages of 18 and 70 years can enroll for an annual accident insurance cover of Rs. 2 lakh. The premium for the scheme is just Rs. 12 per year, making it highly affordable for a vast majority of Indians. The scheme is also available to people with disabilities. The scheme is renewable on an annual basis.
To enroll in the PMSBY, individuals need to fill out a form and provide their bank account details. The premium will be automatically debited from the account on a yearly basis. The scheme is available through various channels, including banks, post offices, and Common Service Centers (CSCs).
The PMSBY provides coverage for accidental death and permanent total disability due to an accident. It also provides for partial permanent disability caused by an accident. In the event of a claim, the nominee or legal heir of the insured person will receive the sum insured.
To apply for Pradhan Mantri Suraksha Bima Yojana (PMSBY), one can follow these steps:
Visit the official website of the bank you wish to register with for the scheme.
Look for the PMSBY registration form on the website and download it.
Fill in the form with the required personal and bank details.
Attach the necessary documents such as a photocopy of your ID proof and address proof.
Submit the completed form along with the documents to the bank.
Pay the premium amount as per the scheme.
The bank will provide you with an acknowledgement receipt for the registration.
After the registration process is complete, your details will be sent to the concerned authorities for further processing.
It is important to note that PMSBY can also be availed through banks or other financial institutions authorized by the government to implement the scheme. Moreover, eligible individuals can also apply for the scheme through the bank's mobile banking, net banking or mobile app, if available.
The scheme is available to all savings bank account holders and the coverage is automatic, meaning that account holders will be enrolled in the scheme unless they opt out. The scheme is also available to people who do not have a savings bank account, but they will have to actively enroll in the scheme.
It is important to note that PMSBY only covers accidental death and disability. It does not cover suicide deaths or non-permanent disabilities (partial disability without irrecoverable loss) unless stated otherwise.
To apply for PMSBY, the following documents are required:
To be eligible for PMSBY, individuals must meet the following criteria:
The nominee or claimants will need to sign a declaration, including the policy number and claim number, along with the date. The form will then be reviewed and signed by an authorized bank official, who will forward it to the insurance company.
Pradhan Mantri Suraksha Bima Yojana aims to provide insurance coverage to the uninsured sector and promote financial inclusion by reaching out to the weaker sections of society and ensuring financial security. The benefits received up to Rs. 1 lakh are tax-free under Section 10(10D) of the IT Act, 1961.
PMSBY is offered through various banks and insurance companies. The list of participating banks includes:
PMSBY offers the following features:
The benefits of PMSBY include:
In addition to the PMSBY, the government also launched the Pradhan Mantri Jeevan Jyoti Bima Yojana (PMJJBY) and the Pradhan Mantri Atal Pension Yojana (PMAPY) in 2015. These schemes are aimed at providing insurance and pension coverage to a large section of the population.
The Pradhan Mantri Suraksha Bima Yojana (PMSBY) and the Pradhan Mantri Jeevan Jyoti Bima Yojana (PMJJBY) are both government-backed insurance schemes offered to citizens of India. Below listed are the differences between them:
Overall, the PMSBY is a valuable scheme for the citizens of India, providing them with an affordable and accessible way to protect themselves and their families against the financial burden of accidental death and permanent disability. With low premium and ease of enrollment, it has the potential to reach a large section of the population that previously did not have access to accident insurance.
1. Will the subscriber receive any benefit if they suffer partial disability due to an accident?
Yes, the subscriber will receive Rs.1 lakh if they suffer from partial disability due to an accident.
2. Will I get the benefits of this scheme if I have another insurance scheme?
Yes, you will receive the benefits of the scheme in addition to any existing accidental insurance cover.
3. What happens if I have insufficient balance in my savings account and the account has been closed?
If you have insufficient balance in your savings account and it has been closed, or if you don't have sufficient balance to keep the policy in force, your accident cover assurance will be terminated.
4. Is a NRI eligible for coverage under PMSBY?
If a NRI has an eligible bank account that is located in India and meets the eligibility criteria, they can take the PMSBY scheme. The claim benefit will be paid to the nominee in Indian currency.
5. Can the hospitalization expenses be reimbursed under this scheme?
No, the hospitalization expenses following the accident that results in death or disablement is not reimbursed.
6. If the subscriber is missing and their death is not confirmed, will the nominee or legal heir get any benefits?
Insurance benefit is only paid on the confirmation of the death of the insured or on expiry of the period specified by law to presume the death of a person, which is 7 years.
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