Pradhan Mantri Suraksha Bima Yojana (PMSBY)

Pradhan Mantri Suraksha Bima Yojana is a government scheme launched on 9th May 2015 by PM Narendra Modi.  It intends to provide an affordable insurance scheme for the poor and underprivileged people in the age group of 18 to 70 years with a bank account at a premium of Rs.12 per annum; risk coverage of Rs.2 lakh for accidental death and full disability and Rs.1 lakh for partial disability.

Details of the scheme :

PMSBY is an Accident Insurance Scheme offering accidental death and disability cover for death or disability on account of an accident. It would be a one-year cover, renewable from year to year. The scheme would be offered / administered through Public Sector General Insurance Companies (PSGICs) and other General Insurance companies willing to offer the product on similar terms with necessary approvals and
tie up with Banks / Post office for this purpose. Participating banks / Post office will be free to engage any such insurance company for implementing the scheme for their subscribers.

Benefits of Pradhan Mantri Suraksha Bima Yojana :

Pradhan Mantri Suraksha Bima Yojana (PMSBY) provides an insurance policy to the people belonging to the underprivileged sections of society. The scheme is administered by insurance companies from both the private and public sectors. Some of the benefits provided by the scheme are mentioned below:

• The Pradhan Mantri Suraksha Bima Yojana offers a life cover of Rs. 2 lakhs for one year to all its account holders. This life cover is provided in case of accidental death or permanent disability.
• A life cover of Rs. 1 lakh is provided to the beneficiary in case of partial disability.
• This scheme can be availed by any individual aged between 18 years to 70 years.
• In case of the death of the account holder, the benefits of the scheme can be availed by his/her nominee.
• The scheme provides an annual premium of Rs. 12 per annum per member. This premium is auto-debited in one instalment on or before 1st June of every year.

Eligibility for Pradhan Mantri Suraksha Bima Yojana :

Any individual must follow the below-mentioned criteria to be eligible for the Pradhan Mantri Suraksha Bima Yojana:

• Any individual aged between 18 years to 70 years are eligible to apply for the scheme.
• He/she must have a bank account along with their phone number linked to the account.
• The individual should submit their Aadhaar details while applying for the scheme. This Aadhaar details will be linked with their bank account.
• If any individual has multiple bank accounts of one or different banks, then he/she will be eligible to join the scheme through one bank account only. In the case of a joint account, the scheme benefits can be availed by all the bank account holders.
• In the case of an NRI beneficiary, the claim benefits will only be provided to the nominee in Indian currency.

As per Pradhan Mantri Suraksha Bima Yojana, any accidental death, murder or disability due to natural calamities is covered under this scheme. Whereas any suicidal death is not covered under Pradhan Mantri Suraksha Bima Yojana. Also, the family members will not be provided with any benefits in case of suicidal deaths.

Premium:

Rs. 20/- per annum per member. The premium will be deducted from the account holder’s bank/ Post office account through ‘auto debit’ facility in one instalment on or before 1 st June of each annual coverage period under the scheme. However, in cases where auto debit takes place after 1st June, the cover shall commence from the date of auto debit of premium by Bank/ Post office. The premium would be reviewed based on annual claims experience.

Termination of cover :

The accident cover for the member shall terminate on any of the following events and no benefit will be payable there under:

1. On attaining age 70 years (age nearest birthday).
2. Closure of account with the Bank/ Post office or insufficiency of balance to keep
   the insurance in force.
3. In case a member is covered through more than one account and premium is
   received by the Insurance Company inadvertently, insurance cover will be restricted
   to one bank/ Post office account only and the premium paid for duplicate
   insurance(s) shall be liable to be forfeited.
4. If the insurance cover is ceased due to any technical reasons such as insufficient
   balance on due date or due to any administrative issues, the same can be reinstated on
   receipt of full annual premium, subject to conditions that may be laid down. During
   this period, the risk cover will be suspended and reinstatement of risk cover will be at
   the sole discretion of Insurance Company.
5. Participating banks will deduct the premium amount in the same month when the
   auto debit option is given, preferably in May of every year, and remit the amount due
   to the Insurance Company in that month itself.

Important Links :