“Pradhan Mantri Suraksha Bima Yojana – An accident insurance scheme“
The number of accidents happening in India daily has increased drastically. Although India has all the medical facilities but still not every citizen can afford it. Those with money can take care of themselves at the time of any calamity but those who only have enough money to survive, find it difficult to cater to their medical expenses.
For this, the government has tried to offer assistance in the form of a social security scheme – “Pradhan Mantri Suraksha Bima Yojana”.
What is Pradhan Mantri Suraksha Bima Yojana?
The Pradhan Mantri Suraksha Bima Yojana provides a cover for accidental death, permanent disability, and partial disablement. Announced in the 2015 budget, the scheme is an accident insurance cover with a low premium which is quite affordable even for the poor.
Moreover, PMSBY aims to provide accident insurance to people in the high-risk category like truck drivers, laborers, mechanics, etc.
Features of Pradhan Mantri Suraksha Bima Yojana:
- The annual premium for the insurance cover is Rs.12 which excludes the service tax (14%).
- PMSBY is only for people who are Below Poverty Line.
- Premium deducts automatically every year, i.e. it automatically deducts from the policyholder’s savings bank account every year in June via auto-debit facility.
- The scheme has two options available, either to renew the scheme every year or to take a long term plan. The applicant can choose either of them.
What is the policy’s enrollment period?
It is necessary to renew the insurance cover every year. The cover has an enrollment period from June 1 to May 31 of the subsequent year.
Moreover, first-time subscribers who want to continue their cover must give their consent before May 31 to continue the policy for subsequent years.
Also read, what is Pradhan Mantri Jhan Dhan Yojana.
What all comes under the PMSBY cover?
If the policyholder dies in an accident then the nominee gets Rs. 2 lakhs as insurance cover. The same case exists if the subscriber is totally disabled in the accident. However, if the accident caused partial disability to the subscriber then the nominee receives Rs. 1 lakh as cover.
Permanent disability means any loss that is not recoverable, i.e. loss of eyesight, loss of hands or loss of feet. Partial disability means the loss of eyesight of one eye or loss of any one hand or foot like a limb.
Furthermore, the scheme is not for a Mediclaim which means that the scheme does not cover any hospital expenses after the accident. The scheme runs in addition to any other existing insurance cover.
Some important inclusions and exclusions
- The scheme covers deaths or disabilities caused by any natural calamity.
- Also, it covers any death or disability caused by murder.
- Any partial disability which is without any irrecoverable loss of any eyesight or any hand is not under the cover.
- Also, the insurance does not provide a benefit to the nominee if the subscriber commits suicide.
Eligible criteria for Pradhan Mantri Suraksha Bima Yojana?
Below are the eligibility criteria to apply for Pradhan Mantri Suraksha Bima Yojana –
- The age of the applicant must be between 18 – 70 years.
- The applicant must have a Savings bank account.
- The subscriber must have an Aadhar number linked with the bank account. A copy of Aadhar card is necessary to attach in case if the account is not linked with the Aadhar number.
- If the applicant has multiple bank accounts then he is eligible to join the scheme only through one account. However, in the case of a joint account, all the account holders can join the scheme.
Also read, what is Pradhan Mantri Awas Yojana.
What are the documents required to apply for PMSBY?
To apply for the insurance scheme, the first one must fill the Pradhan Mantri Suraksha Bima Yojana form with information such as Name, Contact information, Aadhaar number and Nominee details. The application form is available in English, Bengali Hindi, Oriya, Marathi, Tamil, Telugu, and Gujarati.
In addition to this, the applicant must attach a copy of Aadhar card if his savings bank account is not linked to his bank account.
What is the process of applying for Pradhan Mantri Suraksha Bima Yojana?
Under the scheme, the government collaborated with participating banks. The scheme implements and runs through Public Sector General Insurance Companies (PSGICs) and other general insurance companies.
To begin with, download the form from http://www.jansuraksha.gov.in/Forms-PMSBY.aspx, and submit it with your banker. Moreover, the participating bank also accepts applications through SMS and net banking. You can choose any option suitable for you.
To apply through SMS
- The bank sends all the eligible customers an SMS asking for a response.
- To enroll for the insurance scheme, the customer responds by replying to the message as ‘PMSBY Y’.
- Upon the receipt of a response by the bank, the customer then receives an acknowledgment message.
- Subsequently, the bank derives all the necessary information for processing the application like the demographic details and the nominee name, nominee relationship and nominee date of birth from the customer’s savings account.
- If the nominee’s details are not available in the bank’s records then the application process stops here and the applicant can apply again from the nearest bank’s branch or through net banking.
Furthermore, in the case of failure of the auto-debit of the premium because of insufficient funds or other reasons, the insurance cover ceases to be in force.
What are the benefits of Pradhan Mantri Suraksha Bima Yojana?
Apart from the insurance cover, there are several other benefits to this scheme. The policyholder can also avail a deduction under Section 80C for the premium paid. Also, the sum insured received up to Rs.1 lakh is tax-free under Section 10(10D).
When can PMSBY terminate?
The insurance cover can terminate in the following scenarios –
- If the applicant reaches the age of 70 years, the insurance automatically terminates.
- If the savings bank account listed in the insurance scheme closes due to insufficient funds.
- If due to any reasons the insurance cover seizes, it reinstates after the premium is paid in full. The risk cover for that period suspends and the risk cover reinstates at the sole discretion of the insurance company.
- The participating banks will have to deduct the premium in the month when the auto-debit option is given and that amount remits to the insurance company in that same month.
- However, in case if the subscriber has more than one account for which he receives cover then the insurance cover restricts to one account and the extra premium paid will be forfeited.
What is the process to apply for a claim in Pradhan Mantri Suraksha Bima Yojana?
In case of any accident that leads to death or irrecoverable disability (total or partial), the nominee must inform the bank immediately. They must obtain the claim form from the bank or the website, duly fill it and submit it within 30 days of the accident.
Moreover, it is necessary to attach all the required documents like – original FIR, post mortem report, death certificate or in case of disability – disability certificate issued by a civil surgeon or a discharge certificate.
The bank will further process the claim and will complete it within 30 days of receiving the application for the claim. After all the checking and inspects, the claims will disburse to the concerned nominee or heir.