With Pradhan Mantri Suraksha Bima Yojana (PMSBY), you can buy 1-year accidental death and disability cover at an annual premium of Rs 12. The offer is available with your Saving Bank Account, and you can enrol simply by activating an auto-debit mandate for an insurance policy.
Amid financial and health emergency we are facing on the backdrop of the Coronavirus pandemic, the significance of insurance is not overrated. At large, the Indian population is either uninsured or underinsured. With the confluence of digital media with technology, one can buy insurance right from the convenience of their home, while abiding by social distancing. Insurance is not an expense, but a need for the safety and security of a household! Indeed there are many affordable insurance plans for people of all age groups and health conditions, and the government of India also supports several Insurance schemes.
MyMoneyMantra is bringing a series of articles and user guides to educate people about available insurance schemes so that they can be well equipped to face any contingency in life. Insurance does assure the financial security of a household.
Pradhan Mantri Suraksha Bima Yojana or PMSBY is an accident insurance scheme backed by the central government. It is one of the three Social Security Schemes announced in the Union Budget 2015. The other two schemes are Pradhan Mantri Jeevan Jyoti Bima Yojana (PMJJBY) and the Atal Pension Yojana (APY).
What is PMJJBY? Pradhan Mantri Jeevan Jyoti Bima Yojana (PMJJBY) is a group term insurance plan available to people between 18 to 50 years at a nominal premium payment of Rs 330 per year. This is another social security scheme backed by the Indian government.
What is APY? Atal Pension Yojana (APY) was earlier called as Swavalamban Yojana. Under this government-backed pension scheme all subscribing workers (working for the unorganised sector) below 40 years of age are eligible to get pension up to ₹5,000 per month after the age of 60 years.
Coming back to PMSBY, all people in the age bracket of 18 to 70 years of age with bank accounts can enrol for the scheme. The scheme will debit Rs 12 for the year starting from June 1 to May 31 of the next year. The consent to join and mandate auto-debit should be provided before May 31 of every year. Likewise, the consent for renewals should be provided by May 31 of the successive year.
The insurance can be availed through public as well as private sector banks while the policy will be administered through public sector general insurance companies or general insurance companies willing to offer the scheme with the said terms.
The Aadhar Card is the primary KYC document of the bank account holders. The Policy entitles Rs.2 lakh for accidental death and full disability and Rs. 1 lakh for partial disability to the nominee/beneficiary of the policy.
Under PMSBY insurance policy, the policyholder is cover for Rs 2 lakh on accidental death or permanent total disability. The coverage amount is Rs 1 lakh for permanent partial disability of the policyholder. The total and irrecoverable loss of both eyes or loss of use of both hands or feet or loss of an eyesight and loss of use of a hand or a foot will be counted as Permanent total disability. While the total and irrecoverable loss of an eyesight or loss of use a hand or foot will be counted as a permanent partial disability. The insurance coverage is offered in addition to any other insurance plan the subscriber has.
No. There is no Mediclaim provision, and no reimbursement of hospitalisation expenses following an accident, resulting in death or disability will be covered under the scheme.
The PMSBY defines inclusions and exclusions clearly. Any death or disability resulting from an accident or a natural calamity is covered. The murder of the subscriber is also covered. On the other hand, death caused due to suicide is not covered. Also, other partial disabilities, other than ones defined as ‘irrecoverable loss of an eyesight or loss of use of one hand or foot’ are not covered under the policy.
All bank account holders in the age group of 18-70 years are eligible to apply for the PMSBY insurance scheme. Please note that you cannot join the scheme through multiple bank accounts. The scheme is offered through only one bank account. The joint bank account holders can also join. The NRIs are also eligible, however, the claim is paid in Indian currency only.
The premium payable is Rs 12 per annum per member, and the same is deducted from the bank account through an ‘auto debit’ facility on or before June 1 every year. In case the transaction is processed later than June 1, the policy starts from the date of the debit of the premium amount.
PMSBY is offered at Rs 12 annual premium. In order to subscribe for the insurance cover, you just need to share consent with your bank. The bank in partnership with any of the participating Public Sector General Insurance Companies (PSGICs) and other general insurance companies, will offer you the scheme. You can apply physically, via SMS or net banking.
The policy will terminate in the following events:
iii. In case the person enrols through multiple savings accounts and insurance cover will be offered for only one account and the premium received by other accounts will be forfeited.
In case of the accidental death of the account holder, the nominee/appointee/ legal heir should claim as per the enrolment form.