Pradhan Mantri Suraksha Bima Yojana

Pradhan Mantri Suraksha Bima Yojana (PMSBY) is an accident insurance scheme launched by the Government of India. The scheme aims to bring the uninsured population under insurance cover. The Scheme is available to people in the age group 18 to 70 years with a bank account who give their consent to join / enable auto-debit on or before 31st May for the coverage period 1st June to 31st May on an annual renewal basis.

The policy offers an insurance cover against death, total disability, and partial disability. The insurance premium of Rs 12 for the policy shall be deducted from the registered bank account of the policyholder.

Benefits of Pradhan Mantri Suraksha Bima Yojana(PMSBY)

The PMSBY gives people from the lower-income group a chance to insure themselves against unfortunate events that can lead to death or disability. Here are the benefits of the government scheme.

  1. Easy processing of continuous cover.
  2. No regular payment formality worries due to auto-debit facility.
  3. Flexibility to continue or discontinue as per one’s wish.
  4. Accident insurance cover without spending a lot as compared to other policies.
  5. Deduction as per Section 80C and Sum Insured of Rs. 1 lakh is non-taxable as per Section 10(10D) of the Income Tax Act.

Pradhan Mantri Suraksha Bima Yojana Premium

The PMSBY premium is Rs. 12 for a year. It will be auto-debited from the registered bank account of the policyholder. There is a possibility that the premium will be reviewed as per the annual claims experience.

You can renew PMSBY by enabling the auto-debit facility. This way the premium will be automatically debited from your bank account and the policy shall be renewed. The scheme can be renewed on an annual basis. The policy duration is between June 1 to May 31.

Eligibility Criteria for Pradhan Mantri Suraksha Bima Yojana

You will have to meet certain requirements to be able to avail the benefits of the PMSBY. Here’s a list of such eligibility requirements.

  1. The minimum age requirement for being part of the scheme is 18 years.
  2. The maximum PMSBY age limit to avail this scheme is 70 years.
  3. Interested potential policyholders must have an active savings bank account.
  4. The applicant’s saving bank account should be integrated with the person’s Aadhaar card.
  5. In case the Aadhaar details are not linked to the mentioned bank account, a copy of the card should be sent along with the application.
  6. Payment of the premium of Rs. 12.

Key Features of Pradhan Mantri Suraksha Bima Yojana

  1. This is a low-priced policy especially for weaker sections of the society and can be purchased for Rs. 12.
  2. Money is given to the nominee in case of an insurer’s death.
  3. The auto-debit option of premium from the bank account is available.
  4. Option to choose either a long-term policy or yearly renewability.
  5. Easy exit and re-entry rules.
  6. It can also help in saving tax.

Coverage of Pradhan Mantri Suraksha Bima Yojana

The accident cover of the member will terminate/be restricted in any of the following events:

  1. Any accident leading to the policyholder’s death – Rs. 2 lakhs will be given to the nominee
  2. In the case of Permanent total disability – Rs. 2 lakhs to the insurer.
  3. In the case of Permanent partial disability – Rs. 1 lakh to the insurer.
  4. Closure of bank account or insufficiency of balance to keep the insurance in force.
  5. In case a member is covered through more than one account and the premium is received by the insurance company inadvertently, the insurance cover will be restricted to one account and the premium will be forfeited.

Termination of Pradhan Mantri Suraksha Bima Yojana

Following situations in which the policy holder would be immediately terminated are given below:

  1. Closure of account with the bank or insufficiency of balance for debiting premium.
  2. In case of multiple coverage under the scheme, the cover will be restricted to Rs 2 lakh and other insurance covers are terminated and premium shall be forfeited.
  3. In case of policy holder reaches the age of 70.
  4. In case of multiple banks have debited the premium (the only one will be allowed). The policy can be cancelled by the individual by getting in touch with the participating bank.

Documents Required to Enroll for Pradhan Mantri Suraksha Bima Yojana

To be a part of the Pradhan Mantri Suraksha Bima Yojana(PMSBY), you will need the following documents:

Form – Duly filled PMSBY application form containing details such as name, contact details, Aadhar number, and details of the selected nominee have to be submitted. This form is available in several regional languages apart from English and Hindi for ease of people belonging to all the sections of the society. For example, the form is also available in Marathi, Oriya, Tamil, etc.

Aadhar Card – In case the applicant’s Aadhar card details are not linked to the mentioned savings bank account, he/she will have to submit a copy of the Aadhar card. The same needs to be accompanied with the application form.