Recognizing the need for affordable and comprehensive insurance coverage, the Government of India introduced the Pradhan Mantri Suraksha Bima Yojana (PMSBY), a revolutionary initiative aimed at providing financial security and peace of mind to every citizen.
In this comprehensive guide, we delve into the intricacies of the PMSBY, shedding light on its features, benefits, eligibility criteria, and the simple steps to enroll.
What is PMSBY?
Pradhan Mantri Suraksha Bima Yojana (PMSBY) is a government-backed social security scheme in India that aims to provide affordable accidental death and disability insurance coverage to citizens across various age groups. Launched by the Government of India, the scheme is part of the broader financial inclusion initiatives to ensure financial protection and support for individuals and their families in the event of accidents or disabilities.
Under the Pradhan Mantri Suraksha Bima Yojana, policyholders are offered a range of benefits:
- Accidental Death Coverage: In case of the policyholder’s unfortunate demise due to an accident, a predetermined sum assured is paid to the nominee or legal heir.
- Total and Permanent Disability Benefit: If the policyholder faces total and permanent disability resulting from an accident, the scheme provides a lump sum payout to support their financial needs.
- Partial Disability Coverage: The scheme also offers compensation for certain types of partial disabilities, providing additional financial support
The scheme comes with an exceptionally affordable premium, automatically deducted from your bank account. If, unfortunately, the account holder passes away, the nominee receives the payout. Similarly, in the event of the account holder’s incapacitation, the funds are directly disbursed to them.
PMSBY Scheme Benefits
There are many PMSBY benefits for the insured. Some of these are:
- Accidental death insurance coverage is renewable annually
- The PMSBY scheme is affordable, and Rs. 12 premium is charged, excluding a 14% service tax
- Up to Rs. 2 lac is payable to the nominee in case of accidental death or total permanent disability of the insured
- There is flexibility as the scheme can be exited at any time
- Under Section 80C of the Income Tax Act, tax deductions can be claimed on the premium paid.
Under Section 10(10D,) a sum of up to Rs. 1 lakh received under the Pradhan Mantri Suraksha Bima Yojana is tax-free.
Pradhan Mantri Suraksha Yojana Eligibility Criteria
To apply for the Pradhan Mantri Suraksha Bima Yojana, the following criteria must be met:
- The applicant must be between the age of 18 and 70 years.
- It is mandatory for the applicant to have a savings bank account
- The bank account must be linked with the Aadhar card. If it is not linked, then a copy of the Aadhar card must be attached to the application document.
- In case of multiple savings accounts, the applicant can apply for the PMSBY scheme through one account only.
- The yearly premium payable is Rs. 12, which is automatically debited from the bank account.
- The scheme has a validity of one year, after which the insured can opt for PMSBY renewal.
PMSBY Scheme Coverage
To understand the PMSBY scheme details, we must understand what is covered and not covered under this insurance.
| Covered | Not covered |
|---|---|
| Permanent total disability is covered for Rs. 2 lakh | Non-permanent disabilities are not covered |
| Accidental death of the insured is covered for Rs. 2 lakh | Policyholder death by suicide is not covered |
| Permanent partial disability is covered for Rs. 1 lakh | Partial disability without irrecoverable loss is not covered |
Documents Needed to Apply for Pradhan Mantri Suraksha Bima Yojana
Provided below is a compilation of essential documents necessary for enrollment in the PMSBY.
- Application Form – Submit a completed PMSBY application form with particulars including name, contact information, Aadhaar number, and nominee details. This form is accessible in various regional languages besides English and Hindi, such as Marathi, Tamil, and Oriya.
- Aadhar Card – If the applicant’s Aadhaar card information isn’t connected to the specified savings bank account, a copy of the Aadhaar card must be furnished alongside the application form.
Pradhan Mantri Suraksha Bima Yojana Renewal Process
The PMSBY renewal process is simple. The scheme can be renewed using the auto-debit option in which the bank account will be debited for the PMSBY premium, renewing the insurance policy. The policy is in effect from 1st June to 31st May, and the renewal must be done before the end of May.
In case of non-renewal, a cancellation request has to be sent to the bank or the insurance company.
Pradhan Mantri Suraksha Bima Yojana Claim Process
The PMSBY claim form has to be filed to claim benefits under the scheme. The procedure is as follows:
- As a first step, you must inform the bank or the insurance company about the occurrence of the accident immediately.
- Download and fill the PMSBY claim form available on the official website at www.jansuraksha.gov.in or the bank or insurance company.
- Once the form is filled out, it must be submitted within 30 days from the accident date.
- In case of the insured death, the document must be supplemented with the original FIR report, post-mortem report, and death certificate. In case of disability, a disability certificate issued by a civil surgeon and a discharge certificate has to be provided.
- The details are verified by the PMSBY authorities, and then the claim is processed within 30 days of receiving the documents.
- The claim amount is remitted either to the insured’s bank account or the nominee’s bank account.
- If the insured does not have a nominee, the money will be passed on to the legal heir in case of death of the insured. The legal heir will have to furnish the succession certificate.
List of Participating Banks and Insurance Companies in the Pradhan Mantri Suraksha Bima Yojana
The following banks and insurance companies are offering the Pradhan Mantri Bima Yojana:
The participating banks are:
- Axis Bank
- Bank of India
- Bank of Maharashtra
- Bharatiya Mahila Bank
- Canara Bank
- Central Bank
- Corporation Bank
- Dena Bank
- Federal Bank
- HDFC Bank
- ICICI Bank
- IDBI Bank
- IndusInd Bank
- Kerala Gramin Bank
- Kotak Bank
- Oriental Bank of Commerce
- Punjab and Sind Bank
- Punjab National Bank
- South Indian Bank
- State Bank of Hyderabad
- State Bank of India
- State Bank of Travancore
- UCO Bank
- Union Bank of India
- United Bank of India
- Vijaya Bank
The participating insurance companies are:
- Bajaj Allianz
- Cholamandalam MS
- ICICI Lombard
- National Insurance
- New India Assurance
- Reliance General Insurance
- United India Insurance
- Universal Sompo
Conclusion
A government-backed health insurance program, the Pradhan Mantri Suraksha Bima Yojana provides coverage for accidental deaths and disabilities. This scheme is particularly attractive for citizens who can’t afford any other health insurance. It also provides peace of mind that in case of any accidents that might hamper a steady source of income, their family will be taken care of.
What is PMSBY?
What does PMSBY cover?
What are the benefits of the PMSBY scheme?
Who is eligible for Pradhan Mantri Suraksha Bima Yojana?
What is covered under PMSBY?
How can I apply for Pradhan Mantri Suraksha Bima Yojana?
What is the PMSBY claim process?
