Pradhan Mantri Suraksha Bima Yojana

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.

FAQs

What is PMSBY?

Pradhan Mantri Suraksha Bima Yojana (PMSBY) is a government-initiated social security scheme in India designed to offer affordable accidental death and disability insurance coverage to citizens across different age groups. Launched by the Indian Government, it aims to provide financial support in case of accidents or disabilities.

What does PMSBY cover?

PMSBY provides coverage for accidental death, total and permanent disability, and partial disabilities resulting from accidents. It offers a predetermined sum assured to nominees or legal heirs in the event of accidental death or disability.

What are the benefits of the PMSBY scheme?

The benefits of the PMSBY scheme include affordable annual premium, coverage for accidental deaths and disabilities, flexibility to exit the scheme, tax deductions on premium under Section 80C, and tax-free benefits under Section 10(10D).

Who is eligible for Pradhan Mantri Suraksha Bima Yojana?

To be eligible for PMSBY, individuals must be between the ages of 18 and 70, have a savings bank account linked with Aadhar, and pay a yearly premium of Rs. 12. The scheme can be renewed annually, and multiple savings accounts do not permit multiple enrollments.

What is covered under PMSBY?

PMSBY covers permanent total disability up to Rs. 2 lakh, accidental death up to Rs. 2 lakh, and permanent partial disability up to Rs. 1 lakh. However, non-permanent disabilities and policyholder death by suicide are not covered.

How can I apply for Pradhan Mantri Suraksha Bima Yojana?

Applying for PMSBY is easy. Visit participating banks or insurance companies to register, or apply online through the bank’s internet banking facility. Ensure your Aadhar card is linked to your savings account or submit a copy along with the application form.

What is the PMSBY claim process?

In case of an accident, inform the bank or insurance company immediately. Download and fill the PMSBY claim form, submit it within 30 days, along with required documents such as FIR report, post-mortem report, and disability certificate. The claim is processed within 30 days, and the amount is remitted to the nominee or insured’s bank account.