Pradhan Mantri Suraksha Bima Yojana (PMSBY) is one of three social security schemes, that the government had announced in the 2015 Budget. The other two being Pradhan Mantri Jeevan Jyoti Bima Yojana (PMJJBY) and the Atal Pension Yojana (APY) So an accident insurance scheme, PMSBY offers a one-year accidental death and disability cover, which can be renewed annually. The Scheme is available to people in the age group 18 to 70 years with a bank account who give their consent to join / enable auto-debit on or before 31st May for the coverage period 1st June to 31st May on an annual renewal basis. Aadhar would be the primary KYC for the bank account.
The risk coverage under the scheme is Rs.2 lakh for accidental death and full disability and Rs. 1 lakh for partial disability. The premium of Rs. 12 per annum is to be deducted from the account holder’s bank account through ‘auto-debit’ facility in one installment. The scheme is being offered by Public Sector General Insurance Companies or any other General Insurance Company who are willing to offer the product on similar terms with necessary approvals and tie up with banks for this purpose.
What is the difference between PMSBY and other Schemes?
There are two aspects of Pradhan Mantri Suraksha bima Yojana that make it different in its offering and approach. Firstly, it is the sheer size and depth of inclusion to bring and get covered the maximum number of people under this scheme, which kind of makes it very ambitious and challenging. Today, if an earning member of a family becomes permanently disabled or dies an accidental death, his or her family faces a life in penury and hardship, with no protection or support from any institution or group.
By joining the Pradhan Mantri Suraksha bima Yojana scheme and by paying a nominal premium ofRs. 12/- per person per year, he or she will get an insurance cover for a sum ofRs. 2,00,000/-(two lakh) in case of accidental death or permanent full disability ora sum of Rs. 1,00,000/-(one lakh) in case of partial but permanent disability. The scheme will be valid for a year and it can renewed every year.
A lot of government social security schemes have not received a very positive response from people due to lack of financial system infrastructure at a nearby location and moreover, the paperwork involved in opening accounts or making claims was too much for them to handle. Even the leakages in the system resulted in large sections remaining excluded from the benefits of these schemes. This has now been largely address by the present government that has made extensive use of technology to augment its social scheme delivery and monitor mechanisms. All the payments will directly credited to the beneficiary’s account with no scope for leakages.
Benefits of this scheme:
The benefits of this scheme are as follows:
|If accident causes the subscriber’s death so||Rs.2 lakh is paid to the nominee.|
|If an accident leads to total and irrecoverable loss of use if both hands or feet, loss of eyes or loss of sight in one year and loss of use of a hand or foot so||Rs.2 lakh is paid.|
|If accident causes irrecoverable and total loss of sight of one eye and loss of use of one hand or foot so||Rs.1 lakh is paid.|
The subscriber can also avail deduction under Section 80C for the premium paid. The sum insured received up to Rs.1 lakh is tax free under Section 10(10D).
Eligibility Criteria for PMSBY:
The eligibility criteria for Pradhan Mantri Suraksha Bima Yojana is as follows:
- The minimum age requirement is 18 years.
- The maximum age requirement is 70 years.
- Those having a savings bank account and falling under the age group of 18 – 70 years are eligible to subscribe to the policy.
- The bank account must linked with the Aadhaar card.
- If the bank account is not link with the Aadhaar card, then the Aadhaar card copy is must attach with the application form.
- If the individual has more than one savings account, he or she is only eligible to join the scheme through a single bank account.
- Premium to be paid is Rs.12 yearly.
- The premium amount is auto debited from the insured’s bank account.
- The scheme is valid for a year and it can be renewed at the end of the year.
- The primary KYC document required is the applicant’s Aadhaar card.
What is the key features of this scheme?
The features of this scheme are as follows:
- The accidental death insurance cover renewable each year.
- The annual premium to paid is Rs.12. This premium is excluding the service tax which is charged at 14%.
- Up to Rs.2 lakh cover is payable to the nominee of the subscriber if he or she dies in an accident or is totally disabled due to the accident.
- The premium is auto debited from the bank account of the subscriber.
- The subscriber can avail the long term option or renew the scheme every year.
- The subscriber can exit the scheme at any time and can sign-up at any time in the future.
Who can implement this Scheme?
All government-sponsored general insurance companies will offer the scheme, while other insurance companies will have the option to join the program delivery by signing-up with banks.
What are the documents Required?
The Pradhan Mantri Suraksha Bima Yojana application form is to duly filled. The details to filled are:
- Aadhaar number.
- Contact information.
- Nominee details.
- The application form is available in English, Hindi, Bengali, Marathi, Oriya, Telugu, Tamil and Gujarati.
The only document that has to submitted along with the application form is the Aadhaar Card copy if the Aadhaar is not link to your savings bank account.
How to Enroll in this scheme?
Well, it has two options that are available. You can choose any one of them. They are:
A sample process-detail to activate through SMS:
1. Eligible customers will sent an SMS asking them to respond as ‘PMSBY Y’.
2. To enrol for the scheme, customer replies as ‘PMSBY Y’.
3. Customer will get an acknowledgement message for receipt of the response.
4. For processing the application, the demographic details and the nominee name, nominee relationship and nominee date of birth will be taken from the details present in the savings account.
5. In case, the nominee details are not available in core banking records, the confirmation will not taken ahead for processing. Customer may then apply from the nearest branch/net banking.
6. In case, the auto debit of the premium fails due to insufficient funds or other reasons, the insurance cover ceases to be in-force.
Sample process-detail to activate through net banking:
1. Log in to net banking.
2. You will shown PMSBY at the relevant space.
3. Select the account through which you wish to pay your premium.
4. Policy cover amount, premium amount and nominee details (as per the selected account) will be displayed. You can choose to replicate the savings account nominee or add a new nominee.
5. Click on the following declarations/details:
*Good health declaration.
*Terms & Conditions/Scheme Details/FAQs.
*”I do not hold any other policy of the same”.
6. Click on ‘Continue’. You will then shown the complete details of the PMSBY scheme you have registered for.
7. If you are okay with the scheme registration details that display, click on ‘Confirm’.
8. Download the acknowledgement, which carries a unique reference number.
9. Do save the acknowledgement document for future reference.
What will we do in the case of Claim?
Pradhan Mantri Suraksha bima Yojana covers deaths caused by an accident and confirmed by documentary evidence so, in case of incidents like road, rail and similar vehicular accidents, drowning, death involving any crime, etc., the accident should reported to police. In case of incidents like snake bite, fall from tree, etc, the cause should be supported by immediate hospital record. If the death of the account holder, the claim can fill by the nominee/appointee as per the enrollment form or by his legal heir/s in case there is no nomination made by him. The disability claim will credited in the bank account of the insured bank account holder. Death claims will remitted to the bank account of the nominee/legal heir(s).
You can download the claims form from http://www.jansuraksha.gov.in/Forms-PMSBY.aspx.
How much is the premium and how will we pay?
The premium payable is Rs 12 per annum per member and will deducted from his bank account through an ‘auto debit’ facility in one instalment on or before June 1 every year. However, in cases where auto debit takes place after June 1, the cover shall commence from the date of auto debit of premium by the bank.
The annual renewal dates shall be June 1 in subsequent years. Even if on enroled with more than one bank, the claim, if applicable, will paid by only one bank and the other premium may forfeited so, the premium will reviewed based on annual claims experience. However, barring unforeseen adverse outcomes, efforts would be made to ensure that there is no upward revision of the premium in the first three years. Also, there won’t any policy certificate issued to individual subscribers as the participating banks will be the master policyholders.
What is the nature of the Pradhan Mantri Suraksha Bima Yojana scheme?
Ans:- The Pradhan Mantri Suraksha bima Yojana is a one year cover personal accident insurance scheme so, the scheme can renewed yearly and it offers protection against death or disability due to accident.
What is the eligibility criteria to subscribe to Pradhan Mantri Suraksha Bima Yojana (PMSBY)?
Ans:- The subscriber must be between the ages of 18 – 70 years and must have a savings bank account in the participating banks is eligible for subscribing to the Pradhan Mantri Suraksha bima Yojana.
What benefits will the subscriber’s nominee receive in the event the subscriber dies in an accident?
Ans:- The nominee will receive Rs.2 lakh in the event the subscriber dies in an accident.
Can a subscriber enrol for the scheme in two or more banks?
Ans:- No, subscriber can enroll for the scheme through one savings bank account only so, if he or she has enroll for the scheme through another account, it will terminated and the insurance cover will restricted to one account only.
What is the role of the insurance company and the participating banks?
Ans:- The participating banks and the insurance companies will have to administer the scheme so, the participating bank will have to recover the annual premium in one installment from the account holder on or before the due date through the auto-debit facility. So, after collecting the annual premium the amount must transferred to the insurance company. For more details.