All About Pradhan Mantri Suraksha Bima Yojna

The Government of India launched the Pradhan Mantri Suraksha Bima Yojana (PMSBY) to prepare people for sudden life emergencies. The scheme aims to extend insurance coverage to economically vulnerable sections of society, ensuring a considerable sum for accidental death and total permanent disability.

It is important to have detailed knowledge to benefit from PMSBY insurance offered by the Government of India. Let us understand PMSBY insurance thoroughly and make the right decision for the future.

What is the Pradhan Mantri Suraksha Bima Yojana?

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

The one-year cover runs from June 1 to May 31 of the following year. The option to join or to pay by auto-debit must be provided by May 31 every year. Those who wish to continue with the insurance policy after the first year’s conclusion must consent to 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 from 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.

Features of PMSBY

PM Suraksha Bima Yojana is a crucial safety net for individuals and families, offering affordable and comprehensive features. Let us take a look at a few of them:

Eligibility

PMSBY is open to all residents of India aged 18 to 70 years who have a savings bank account. This inclusive eligibility ensures a broad reach across different demographics, promoting financial security for a diverse population.

Coverage

The scheme provides coverage against accidental death and total disability, offering a sum assured of ₹2 lakh for accidental death and ₹1 lakh for total permanent disability. This coverage helps mitigate financial burdens resulting from unforeseen accidents.

Premium

PMSBY is remarkably affordable, with an annual premium of just ₹12 per member. This low premium makes it accessible to economically disadvantaged individuals who may not typically afford insurance, promoting financial inclusion.

Policy Period

The coverage period for PMSBY is annual, from June 1st to May 31st of the subsequent year. This ensures continuous protection against accidents throughout the policy year.

Auto-Renewal

The policy is auto-renewable annually, provided the premium of ₹12 is paid annually. This feature eliminates the hassle of manual renewal, ensuring uninterrupted coverage for policyholders without needing to reapply each year.

Benefit of PMSBY

PMSBY has various benefits, including financial support for policyholders and beneficiaries. Let us take a look at the other benefits:

Financial Protection

PMSBY offers crucial financial security by providing a lump sum in case of accidental death or disability, ensuring peace of mind for policyholders and their families.

Low Cost

With its affordable premium, PMSBY makes insurance accessible to all, especially those from economically weaker sections, promoting widespread financial inclusion.

Social Security

By extending coverage to a broad population scope, PMSBY enhances social security, fostering a safety net that safeguards individuals and contributes to societal resilience.

Support for Family

In times of adversity, PMSBY provides monetary aid and emotional and familial support, ensuring that loved ones are cared for and can maintain their quality of life.

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 and Activate it?

Applying for and activating the PMSBY is an easy process designed to be accessible to all eligible individuals. Here’s how you can apply and activate PMSBY:

Eligibility Check

Ensure you meet the eligibility criteria, which include being a resident of India between 18 and 70 years old and having a savings bank account.

Enrollment Process

PMSBY is typically offered through participating banks. You must complete the PMSBY application form, which is available at the bank branch or online through the bank’s website. You must provide details such as your name, address, age, Aadhaar number (if applicable), and nominee details.

Premium Payment

The annual premium for PMSBY is ₹12 per annum. The bank provides an auto-debit facility that automatically deducts this amount from your savings account.

Activation

Once your application form is processed and the premium is deducted from your savings account, your PMSBY coverage becomes active. The bank will send you a confirmation or policy certificate confirming your enrollment and coverage under PMSBY.

Policy Renewal

PMSBY offers annual coverage, so ensure that the premium of ₹12 is paid annually to keep the policy active. The policy needs to be renewed each year to continue enjoying the benefits of PMSBY.

Claim Process

In case of accidental death or disability, inform the bank immediately. To initiate the claim settlement process, submit the necessary claim form along with supporting documents such as medical reports, death certificates, police reports (for accidents), etc.

How to Download the PMSBY Certificate?

You can obtain the certificate from the bank where you submitted your scheme application. The general methods for downloading a PMSBY policy certificate vary by bank.

Documents Needed for Enrolment Under PMSBY

For enrolment under Pradhan Mantri Suraksha Bima Yojana (PMSBY), you typically need minimal documentation:

• Completed Application Form: Download the form from https://jansuraksha.gov.in/forms-pmsby.aspx and fill it out accurately.

• Proof of Identity: An Aadhaar card is generally preferred. Another government-issued ID might be acceptable if you don’t have an Aadhaar card linked to your bank account.

• In some cases, your bank might request additional documents for verification purposes.

Who can Benefit from PMSBY?

PMSBY is designed to benefit all individuals aged 18 to 70 with a savings bank account. It aims to provide financial protection to economically vulnerable segments of society who may not have access to traditional insurance coverage.

The scheme mainly targets individuals from economically weaker sections who may need access to comprehensive insurance coverage due to financial constraints. The low premium makes it affordable for everyone. 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. The banks are free to include any general insurance company in implementing the PMSBY scheme for their subscribers.

To enroll in the scheme, the subscriber can download a form 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. The registration form may also be downloaded from the government’s multilingual Jan Suraksha website.

As mentioned above, enrollment can be made through SMS or net banking.

To Activate the PMSBY through SMS

Eligible customers will be sent an SMS and have to respond to it as ‘PMSBY.’ The customer receives an acknowledgment message once the above response has been sent. Then, the current savings account details will be considered before processing 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 processed. 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 due to insufficient funds in the policyholder’s bank account or other reasons, the insurance cover ceases to be in force.

To Activate the PMSBY Scheme Through Net Banking

To activate your PMSBY through net banking, you have to follow these easy steps:

• 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 policy cover amount, the premium amount, and the nominee’s details (concerning the account selected) will be displayed.
• You could either replicate the nominee details or add a new one.
• Finally, you must click the health declaration option, opting for good health.

How to Claim for PMSBY?

The claim process for PMSBY can be initiated by either the nominee (in case of death) or the insured themselves (for permanent disability). Here are the steps:

• Inform the Bank: Quickly inform your bank about the death or permanent disability. It can often be done at your branch or through customer support channels.

• Claim Form Acquisition: You can obtain a claim form from your bank branch, designated insurance company, or their website.

• Form Completion: Duly fill out the claim form and attach the necessary documents.

• Document Submission: Submit the completed claim form and supporting documents to your bank within 30 days of the incident.

Key Takeaways

• PMSBY is open to all Indian residents aged 18 to 70 with a savings bank account.
• It provides a ₹2 lakh sum assured for accidental death and ₹1 lakh for total permanent disability.
• They are affordably priced at ₹12 annually per member, making them accessible even to economically disadvantaged individuals.
• PMSBY’s annual coverage cycle runs from June 1st to May 31st, ensuring continuous protection against accidental risks throughout the policy year.

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