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Pradhan Mantri Suraksha Bima Yojana

Pradhan Mantri Suraksha Bima Yojana
  • 10th Mar 2021 |
  • 7,293

With events in life taking a turn toward 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. It has taught us the value of a well-thought-out financial road map that can be used to navigate the way forward when circumstances become challenging.

In this journey of financial planning, life insurance holds immense importance. To emphasise the value of a life insurance cover and encourage its subscription, the Government of India launched the Pradhan Mantri Suraksha Bima Yojana (PMSBY).

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 being 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 cover 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 an insurance cover. 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. In the event that 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, or loss of use of both hands or feet, or 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 that the subscriber might hold.

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Who Can Benefit from the Pradhan Mantri Suraksha Bima Yojana?

The Pradhan Mantri Bima Yojana can be availed by people in the age bracket of 18 to 70 years considering that they have a bank account and have provided their consent to join or enable auto-debit on or before 31st May for the coverage period 1st June to 31st May on an annual renewal basis.

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

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

In case the policyholder wishes to exit the scheme, they can rejoin it in the future by paying the annual premium following certain conditions.

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. In order to implement the PMSBY scheme for their subscribers, the banks are free to rope in any general insurance company.

  • To enrol 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 enrol for PMSBY insurance is through net-banking.
  • To enrol for the PMSBY, reach out to a bank that is affiliated with the scheme or an insurance company.
  • The form for registering can also be downloaded from the government’s Jan Suraksha website where it is available in multiple languages.

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 they will have to respond to it as ‘PMSBY Y.’
  • Once the above response has been sent, the customer receives an acknowledgement message.
  • For processing the application, details from the present savings account will be taken. These include the name of the nominee, demographic details, relationship with the nominee, and the nominee’s date of birth.
  • In case the above-mentioned details 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 payment of premium fails owing to insufficient funds in the bank account of the policyholder 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, simply search for it in the search bar from the home page.
    • You then need to select the account through which you will be paying the premiums.
    • Once you select 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.
    • You will then have to click on the declaration:
    • o Good health declaration o Terms & Conditions /Scheme Details/FAQs o I do not hold any other policy of the same
    • Following this, click on ‘Continue’ to view the complete details of the PMSBY insurance that you have opted for
    • 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, drowning, or death involving a crime, the incident needs to be reported to the police.
    • Other incidents need to be supported by an immediate hospital record.
    • In the event that the policyholder dies, the claim can be filed by the nominee or the legal heir if the nominee is not mentioned by the subscriber.
    • The disability claim is credited into the bank account of the insurance holder, whereas the death claim is credited to the account of the nominee or the legal heir.

    What is Included and Excluded in the PMSBY Scheme?

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

    However, if the policyholder were to commit suicide, the family does not receive the death insurance benefit. Major 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
    • Closure of the bank account owing to insufficient funds for keeping the policy in force
    • If the member is covered through more than one account and the insurance company receives the premium inadvertently, the insurance cover will be restricted to just one account, and the premium will be forfeited.

    In Conclusion

    The Pradhan Mantri Suraksha Bima Yojana comes with several benefits making it an admirable accident cover policy. The PMSBY was created with the aim 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.

Kotak e-Term Plan

Features

  • Nominal Cost
  • Multiple Plan Options
  • Flexible Payout Options
  • Critical Illness Rider
  • Tax Savings
  • Long term Coverage

Ref. No. KLI/22-23/E-BB/492

T&C

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