Pradhan Mantri Suraksha Bima Yojana: PMSBY Details and Benefits

Pradhan Mantri Suraksha Bima Yojana

Suraksha Bima Yojana

The government led by Prime Minister Mr. Narendra Modi has launched numerous schemes. Pradhan Mantri Suraksha Bima Yojana is a significant scheme providing insurance cover to poor section. The accident insurance was first announced by the Finance Minister Mr. Arun Jaitely in 2015. It was implemented soon to increase the number of people who are covered against accidents. Pradhan Mantri suraksha bima yojana is meant for people between 18 to 70 years old with a bank account. The insurance policy carries nominal annual premium amount. We have discussed this government-backed insurance program in details. Insurance is provided against accidental death and permanent disability.

Suraksha bima yojana

Pradhan Mantri Suraksha bima yojana gives financial protection to poor families from deaths and disabilities caused by accidents. There are a large number of state-owned and private insurance companies. But a certain section remains deprived due to the inability to afford premiums. Pradhan Mantri Suraksha bima yojana carries very affordable premium charges. It thereby ensures financial security against unforeseen accidents without paying high premiums. In spite of being a very common concept in India, life insurance is restricted only to people above poverty line. This particular financial inclusion program is initiated to eliminate this restriction. The main purpose is to make insurance cover affordable for poor class.

Pradhan Mantri Suraksha Bima Yojana Overview

Here are the benefits that will be provided to the beneficiaries under this insurance program:

  1. The scheme is available for people aged between 18 to 70 years.
  2. A bank account is mandatory.
  3. The single annual premium amount in June will be auto-debited from the bank account.
  4. The annual premium amount is Rs. 12 (this does not include service tax). The service tax will be around 14% of the premium.
  5. The payment to nominee is as below:
  • 2 lakh in the case of accidental death or full disability. (Full disability is defined as loss of both the eyes, hands or feet.
  • 1 lakh in the case of partial and permanent disability. (Partial permanent disability means a loss of one hand or foot or one eye.

Pradhan Mantri Suraksha Bima Yojana

  1. Pradhan Mantri Suraksha bima yojana is valid for one year and can be renewed every year.
  2. The insurance program will be linked to the Jan Dhan Yojana bank accounts.
  3. The major KYC document for the scheme is Aadhar card.
  4. Even if the person is having more than one bank account, he/she can register only single bank account with this scheme.
  5. If the policyholder exits the scheme, it can be re-joined in future with the same terms and conditions.

PMSBY Claim Process

The claim process is quite similar to that of any private or state-owned bank.

  1. Inform the bank regarding the accident.
  2. The insurance claim should be submitted to the same bank from which the yojana is subscribed.
  3. The policyholder has to submit the claim form within 30 days from the date of the accident.
  4. The claim should be submitted with the supporting documents like death certificate, post mortem-report, FIR, hospital’s discharge certificate, and disability certificate if applicable.
  5. The insurance amount is paid to the nominee after the verification process by the bank.

Termination/Cancellation of Suraksha Bima Yojna

In following conditions, the insurance policy will be automatically terminated. No benefit will be payable to the subscribers under these conditions.

  1. If the policyholder has attained the age of 70 years.
  2. If the insurance is not renewed by the subscriber or stopped by the subscriber.
  3. If the insurance company terminates or suspends the account due to insufficient bank balance to pay a premium.

More than 124 million citizens have already subscribed for this scheme by February 2016. Public sector general insurance companies like New India Assurance, Oriental Insurance, United India Insurance, and National Insurance are offering Pradhan mantri suraksha bima yojana through link-ups with the banks. The concerned bank opening PMSBY account is free to appoint the insurance company of their choice. Keep following our site for information on various governmental schemes like Sukanya samriddhi yojanaPradhan mantri jan dhan yojna and PM awas yojana.

Be the first to comment

Leave a Reply

Your email address will not be published.