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Pradhan Mantri Suraksha Bima Yojana

Pradhan Mantri Suraksha Bima Yojana (PMSBY) is India's government-backed accident insurance scheme. Know More about Pradhan Mantri Suraksha Bima Yojana and its benefits.

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Amit Raje
Written By :
Amit Raje

Amit Raje is an experienced marketer who has worked in various Fintechs and leading Financial companies in India. With focused experience in Digital, Amit has pioneered multiple digital commerce in India. Now, close to two decades later, he is the vice president and head of the D2C business department. He masters the skill of strategic management, also being certified in it from IIMA. He has challenged his challenges and contributed his efforts in this journey of digital transformation.

Amit Raje
Reviewed By :
Prasad Pimple

Prasad Pimple has a decade-long experience in the Life insurance sector and as EVP, Kotak Life heads Digital Business. He is responsible for developing user friendly product journeys, creating consumer awareness and helping consumers in identifying need for life insurance solutions. He has 20+ years of experience in creating and building business verticals across Insurance, Telecom and Banking sectors

With events in life taking a turn towards the unknown due to the pandemic, we as individuals experienced a cultural shift that compelled us to introspect. This introspection stimulated by the lockdown and the changing parameters that it brought along, carefree movies, self-help books, and meditation, has convinced us of the importance of living in the moment. However, it has done this while making us more sensitive towards our responsibilities for the future. In addition, it has taught us the value of a well-thought-out financial roadmap that can be used to navigate the way forward when circumstances become challenging.

In order to keep people ready for such unknowns, the Government of India launched the Pradhan Mantri Suraksha Bima Yojana (PMSBY). Let us deep dive and understand more about it.

What is the Pradhan Mantri Suraksha Bima Yojana (PMSBY)?

Announced by the Government of India in the 2015 budget, the Pradhan Mantri Suraksha Bima Yojana is one of the three social security schemes. The other two are Pradhan Mantri Jeevan Jyoti Bima Yojana (PMJJBY) and the Atal Pension Yojana (APY).

The PMSBY is a government-sponsored socially oriented insurance scheme that aims to provide insurance coverage in the event of an accident leading to the death or disability of the policyholder. The PMSBY insurance scheme offers a one-year accidental death and disability cover, which can be renewed annually.

The one-year cover starts from June 1 to May 31 of the following year. The option to join or to pay by auto-debit has to be provided by May 31 every year. Those who wish to continue with the insurance policy after the conclusion of the first year have to give their consent for auto-debit before May 31 for successive years.

With a highly affordable premium of ₹12 per year, the PMSBY scheme aims to bring the uninsured population under insurance coverage. Under the PMSBY insurance, the risk coverage available for accidental death and permanent total disability is ₹2 lakhs, whereas the risk coverage for permanent partial disability is ₹1 lakh. Therefore, if the policyholder dies owing to an accident, the nominee will be given the amount of ₹2 lakhs.

Permanent total disability takes into account total and irrecoverable loss of both eyes, loss of use of both hands or feet, loss of eyesight, and loss of use of a hand or a foot. Permanent partial disability is defined as total and irrecoverable loss of eyesight or loss of use of a hand or foot. This scheme will be in addition to any other insurance plan the subscriber might hold.

Who can apply for PMSBY?

Anyone with a bank account between the ages of 18 and 70 who agrees to sign up for or activate auto-debit on or before May 31 for the coverage period spanning from June 1 to May 31 on an annual renewal basis is eligible to participate in the scheme.

How to apply for PMSBY?

You can enroll in the PMSBY by going to a bank or insurance firm connected to it. The Pradhan Mantri Suraksha Bima Yojana form, popularly known as the PMSBY form, can be downloaded from the Jansuraksha website of the government.

Benefits of PMSBY

  • Without investing a lot of money, this health insurance policy provides accidental insurance coverage.
  • If the insured perishes in an accident, the policy will help the dependents financially.
  • The insured no longer has to be concerned about forgetting to pay their premiums on time, thanks to the auto-debit option.
  • The insured has the freedom to decide whether to keep the plan going or stop it as they see fit.

Under Section 80C of the previous income tax code, the plan premiums paid are tax deductible. Additionally, under Section 10(10D) of the Income Tax Act of 1961, the beneficiaries’ receipt of up to ₹1 lakh is not subject to taxation.

How to download the PMSBY certificate?

The bank where you submitted your scheme application is where you can obtain the certificate. The general methods for downloading a PMSBY policy certificate vary depending on the bank.

Who Can Benefit from the Pradhan Mantri Suraksha Bima Yojana?

The premium of ₹12 per annum will be deducted from the savings account of the policyholder through the auto-debit facility. If the subscriber holds multiple bank accounts in one or different banks, they will be eligible to join the scheme only through one bank account. However, if the subscriber holds a joint statement, all the account holders are eligible to join the scheme.

NRIs can also avail of the PMSBY scheme; however, if a claim arises, the benefit will be settled with the nominee or the beneficiary only in Indian currency.

How to Register for the Pradhan Mantri Suraksha Bima Yojana?

The PMSBY insurance is managed by Public Sector General Insurance Companies (PSGICs) and other general Indian insurance companies in collaboration with the participating banks. To implement the PMSBY scheme for their subscribers, the banks are free to rope in any general insurance company.

To enroll for the scheme, the subscriber can download a form that has to be handed over to their banker. Some banks have also initiated an SMS-based enrolment process. Another online method to enroll for PMSBY insurance is through net banking. You can contact a bank affiliated with the scheme or an insurance company. Additionally, the registration form may be downloaded from the government’s multilingual Jan Suraksha website.

As mentioned above, the enrolment can be done through SMS or net banking.

To activate the PMSBY scheme through SMS:

Eligible customers will be sent an SMS and have to respond to it as ‘PMSBY.’ Once the above response has been sent, the customer receives an acknowledgement message. Then, details from the current savings account will be taken to process the application. These include the nominee’s name, demographic information, relationship with the nominee, and date of birth. If the details mentioned above are not present in the core banking records, the confirmation for the policy will not be taken ahead for processing. If this happens, the customer can apply for the policy at their nearest branch or do it through net banking. It is also important to note that if the premium payment fails to owe to insufficient funds in the policyholder’s bank account or for any other reasons, the insurance cover ceases to be in force.

To activate the PMSBY scheme through net banking:

  • Log in to your net banking.
  • The PMSBY will be displayed under the relevant section; if you cannot find it, search for it in the search bar from the home page.
  • You then need to select the account through which you will pay the premiums.
  • Once you choose the account, the amount of the policy cover, along with the premium amount and the details of the nominee (with reference to the account selected), will be displayed.
  • You could either replicate the nominee details or opt to add a new nominee.
  • Finally, you will have to click on the declaration. Good health declaration

Terms & Conditions /Scheme Details/FAQs

I do not hold any other policy following this; click on ‘Continue’ to view the complete details of the PMSBY insurance that you have opted for. Next, verify the scheme registration details and if you are convinced, click on ‘Confirm’. Once this is done, download the acknowledgement form, which carries a unique reference number, and save this for future needs.

How to Make the Claim for PMSBY Scheme?

As the PSMBY covers death caused by accident, this needs to be confirmed by documentary evidence. In case of unfortunate events such as accidents, drownings, or death involving a crime, the incident must be reported to the police. Other incidents need to be supported by an immediate hospital record. If the policyholder dies, the claim can be filed by the nominee or the legal heir if the subscriber does not mention the nominee. The disability claim is credited into the bank account of the insurance holder, whereas the death claim is credited to the nominee’s account or the legal heir.

What is Included and Excluded in the PMSBY Scheme?

Accidents and any disability or death owing to natural calamities defined in the policy are covered under PMSBY. Additionally, death because of murder is also covered in PMSBY insurance.

However, if the policyholder commits suicide, the family does not receive the death insurance benefit. Significant exclusions also comprise intentional self-injury, attempted suicide under the influence of drugs or alcohol, or any loss arising from a breach of law with or without criminal intent.

The accident cover of the member will also be terminated or restricted if:

The policyholder crosses the age of 70 or the bank account is closed owing to insufficient funds for keeping the policy in force.

Suppose the member is covered through more than one account and the insurance company receives the premium inadvertently. In that case, the insurance coverage will be restricted to just one account, and the bonus will be forfeited.

In Conclusion

The Pradhan Mantri Bima Yojana has several benefits making it an admirable accident cover policy. The PMSBY was created to provide insurance policies to the weaker sections of society and to ensure their family’s financial security, which is why the policy is made available at a highly reasonable premium. The policy also comes with a hassle-free claim settlement procedure, and the enrolment procedure is also customer-friendly so that it can be used by many.

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Ref. No. KLI/22-23/E-BB/2435

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- A Consumer Education Initiative series by Kotak Life