Pradhan Mantri Suraksha Bima Yojana (PMSBY) is one of three standardized security schemes that the government had declared in the Budget of 2015 and the other two are Pradhan Mantri Jeevan Jyoti Bima Yojana (PMJJBY) and the Atal Pension Yojana (APY).
What is PMSBY?
As a mishap insurance scheme, PMSBY provides a one-year accidental death in addition to disability cover, which can be regenerated yearly. If you are not able to understand the English version of the policy and the scheme then you also get complete details in the Pradhan Mantri Suraksha Bima Yojana in Hindi version.
Matters covered and how much in PMSBY?
Under Pradhan Mantri Suraksha Bima Yojana by pm, the scope of risk coverage accessible is Rs 2 lakh for death due to the accident as well as permanent inability, and Rs 1 lakh for permanent partial disability. Permanent total disability is stated as aggregate and irrecoverable loss of the two eyes or loss of utilization of the two hands or feet or loss of visual perception and loss of utilization of a hand or a foot. Permanent partial disability is defined as complete and irrecoverable loss of visual perception or loss of utilization of a hand or foot.
This is new scheme like Ayushman Bharat National Health Protection scheme which will give Rs.5 lac of coverage to entire family.
The cover will be notwithstanding any other insurance plan the subscriber has. The plan isn’t a Mediclaim, i.e., there is no arrangement for repayment of hospitalization costs following the accident, ensuing in death or inability.
Important additions and eliminations
Mishaps, any fatality or disability (as outlined under PMSBY) as a result of natural calamities is secured under PMSBY. While death as a result of suicide is not covered, but death due to murder is covered. Partial disability without unrecoverable loss of visual perception or loss of utilization of one hand or foot is not covered. Likewise, the family gets no insurance benefit in case the policyholder commits suicide.
Premium and mode of payment
The premium payable is Rs 12 for each annum for every member and will be deducted from his bank account through an ‘auto debit’ facility in a single installment on or before 1st June of every year. Nevertheless, in situations where auto debit happens after June 1, the cover might begin from the date of auto debit of premium by the bank.
The yearly renewal dates might be June 1 in the subsequent years. Regardless of whether one gets enrolled with more than one bank, the claim, if relevant, will be paid by merely a single bank and the other premium may get forfeited. The premium will be checked on in view of yearly claims involvement. Notwithstanding, barring unforeseen adverse results, endeavors would be made to guarantee that there is no revision of the premium in the initial three years. Additionally, there won’t be any policy certificate issued to the individual subscriber as the participating banks will be the master policyholders.
Where to purchase the scheme
The plan is offered/managed through Public Sector General Insurance Companies (PSGICs) and other general insurance agencies, in cooperation with participating banks. The banks are allowed to connect with any general insurance company to implement the plan for their endorsers.
All you have to do is to fill in the Pradhan Mantri Suraksha Bima Yojana form online or offline and submit it. If you are an account holder of the State Bank of India then you can go in for Pradhan Mantri Suraksha Bima Yojana SBI.
Details of the scheme
The plan will be a one year cover, renewable from year to year; Accident Insurance Scheme offering accidental death and disability cover for death or inability by virtue of an accident. The plan would be offered/ distributed through Public Sector General Insurance Companies (PSGICs) and other General Insurance organizations willing to offer the product on comparative terms with vital endorsements and tie up with Banks for this reason.
Coverage in Pradhan Mantri Suraksha Bima Yojana
All individual (joint or single) having a bank account and are in the 18-70 year age group are qualified to join pm Suraksha Bima Yojana. If you have several bank accounts in one or different banks, then you are eligible to join the plan through one bank account only. If you have a joint account then all the holders of the account are eligible to join the scheme. Indeed, even NRIs are qualified; however, in the event that a claim emerges, the claim amount will be paid to the beneficiary/nominee only in INR. Aadhar would be the essential KYC for the bank account.
Participating Bank – the master policyholder
Participating Bank will be the Master policyholder for the benefit of the partaking endorsers. A basic and endorser agreeable organization and claim settlement process should be finalized by the individual general insurance agency in discussion with the participating Banks.
Expiry of cover
The cover expires when any of the below events occur and no benefit will be payable there under:
- On reaching 70 years.
- Closure of account with the Bank or insufficient balance to maintain the insurance scheme.
- In case a member is secured through more than one account and premium is received by the Insurance Company unintentionally, protection cover will be confined to one only and the premium will be forfeited.
- If the insurance cover is stopped because of any specialized reasons, like, inadequate balance on the due date or due to any managerial issues, the same can be reinstated on receipt of the full yearly premium, subject to conditions that might be set down. Amid this period, the risk cover will be suspended and restoration of risk cover will be at the sole prudence of Insurance Company.
- Participating banks will deduct the premium sum around the same time when the auto debit choice is given, ideally in May of every year, and remit the sum due to the Insurance Company in that month itself.
Final words About PMSBY
With every one of these advantages and highlights offered by this strategy and with its negligible premium rates, Pradhan Mantri Suraksha Bima Yojana is an outstanding policy amongst other government managed savings plans.