A Brief Look at Pradhan Mantri Suraksha Bima Yojana
Health Insurance

A Brief Look at Pradhan Mantri Suraksha Bima Yojana

Launched by the Government of India, the Pradhan Mantri Suraksha Bima Yojana (PMSBY) is an accident insurance scheme. This government initiative is aimed at helping daily wage and low–income families get access to accident insurance. Let’s take a closer look at this scheme, what it covers, and how to sign up for it.

What is Pradhan Mantri Suraksha Bima Yojana?

The Pradhan Mantri Suraksha Bima Yojana is a personal accident insurance scheme that financially covers the subscriber against accidental death and permanent full or partial disability. One can easily subscribe to the Pradhan Mantri Suraksha Bima Yojana through various public and private banks and insurance companies. The annual premium charged for subscribing to the Pradhan Mantri Suraksha Bima Yojana is just Rs.12 and the maximum claimable amount under this scheme is Rs.2 lakhs.

The PMSBY scheme details are as follows:

  • Eligibility

    The Pradhan Mantri Suraksha Bima Yojana can be subscribed to by anyone who is between 18 and 70 years of age with a savings account at a bank that is registered with the government under this scheme. An individual must give their consent to the government before subscribing to PMSBY.

  • The premium charged and method of payment

    The government has set the yearly premium for Pradhan Mantri Suraksha Bima Yojana at Rs.12. This amount is auto debited from your account once every year. Auto debit is the only mode payment that is accepted for the subscription and renewal of the PMSBY. You must raise a cancellation request if you wish to opt out of the scheme.

  • Tenure of the policy

    The subscription for the Pradhan Mantri Suraksha Bima Yojana needs to be renewed on a yearly basis. As per the government norms, the policy starts from the 1st of June and ends on the 31st of May of the subsequent year.

  • Condition of subscription

    You need to subscribe to the Pradhan Mantri Suraksha Bima Yojana on or before the 1st of June. Do note that the PMSBY expires on the 31st of May regardless of your subscription date.

  • Offered coverage under the scheme

    The maximum claimable amount offered by the PMSBY is Rs.2 lakhs per subscriber. The PMSBY pays out the entire Rs.2 lakhs in case the subscriber dies accidentally or suffers permanent disability during the insured period. Alternatively, if the subscriber becomes partially disabled, they will receive a compensation of up to Rs.1 lakh. Partial disablement includes the permanent loss of sight in one of the eyes, or the loss of one hand or leg.

  • Exceptions

    The government backed insurance plan does not cover self-inflicted injury and bodily damage incurred due to attempted suicide. The Pradhan Mantri Suraksha Bima Yojana also does not cover any loss incurred due to the breach of law.

What are the Benefits of Pradhan Mantri Suraksha Bima Yojana?

There are three major PMSBY benefits to note. These are:

  • Affordability

    The annual premium charged by the Ministry of Finance for subscribing to the Pradhan Mantri Suraksha Bima Yojana is fixed at Rs.12. Such a low price ensures that the insurance scheme is affordable and available to all. Also, any insurance pay–out received up to Rs.1 lakh through the PMSBY is exempted from tax under Section 10D of the Income Tax Act of 1961.

  • Scope of coverage

    The Pradhan Mantri Suraksha Bima Yojana provides maximum coverage of Rs.2 lakh for accidental death and total or partial permanent disability. This makes it the cheapest accident insurance policy in the market offering a valuable payout to tackle loss of income due to the death or disablement of the family breadwinner.

  • Auto–debit feature

    Auto–debit is the only acceptable mode of payment for subscribing to the PMSBY. This form of debit helps ensure that the coverage never lapses because you forgot to renew the subscription.

How Can I Sign Up for The Pradhan Mantri Suraksha Bima Yojana Insurance Scheme?

It is quite easy to subscribe to this government–backed insurance scheme. You can either sign up by logging into the online banking portal offered by your bank or by sending an SMS from your registered mobile number to the toll–free number of various participating banks and insurance companies. You will require the following set of documents to complete the subscription process:

  • Application form

  • Aadhaar Card

  • Contact details of the account holder

  • Contact details of the nominee

How to Raise an Insurance Claim?

As per the government norms, banks are required to process your Pradhan Mantri Suraksha Bima Yojana insurance claims within 30 days of application. Here is how you can raise a PMSBY insurance claim:

  • Report the accident to the bank within 24 hours of its occurrence and file the relevant FIR in the nearest police station.

  • Download the application form to raise a claim from the bank’s website and submit the same within 30 of the accident.

  • Attach the following documents – the original FIR, claim form, certificate of death or disability (whichever applicable), and a discharge certificate.

  • Once the details have been verified by the bank, the claim is sent to the insurance company for further processing.

  • If the insurance company accepts your insurance claim, the pay-out is processed within 30 days and remitted to the subscriber’s bank account in a lumpsum.

Things to Keep in Mind Before Subscribing to the Pradhan Mantri Suraksha Bima Yojana

There are a few terms and conditions that one must keep in mind before subscribing to the Pradhan Mantri Suraksha Bima Yojana. These are:

  • The subscription will be automatically marked obsolete once the subscriber reaches the age of 70 years.

  • The subscription gets cancelled if you close your account with the registered bank.

  • Even if you have multiple bank accounts with the registered banks, you can only subscribe to the Pradhan Mantri Suraksha Bima Yojana using one account.

  • If you do not have enough funds to renew the policy on the 31st of May, your subscription will expire.

  • If any information provided by the subscriber is found to be untrue, the subscription will be cancelled.

Accidents are unpredictable in nature. They can cause monetary losses and pose a threat to life in many cases. While accidents cannot always be prevented from happening, it is always better to secure your family’s financial future by getting yourself a personal accident insurance policy.

Disclaimer: The above information is indicative in nature. For more details on the risk factor, terms and conditions, please refer to the Sales Brochure and Policy Wordings carefully before concluding a sale.

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