Pradhan Mantri Suraksha Bima Yojana(PMSBY) Scheme

During the budget 2015, the government of India announced three social security schemes, namely, Pradhan Mantri Suraksha Bima Yojana (PMSBY), Pradhan Mantri Jeevan Jyoti Bima Yojana (PMJJY) and the Atal Pension Yojana (APY) for the welfare of the poor. The PMSBY is an accident insurance scheme that offers coverage against death and disability caused due to an accident. The cover is provided for one year, post which it can be renewed annually.The introduction of the PMSBY is considered a great boon for the poor and the migrant workers who cannot get insurance cover due to the high premium cost. The Pradhan Mantri Suraksha Bima Yojana has a minimum premium of Rs. 12 per year, and it offers coverage up to Rs. 2 lakhs in the event of policyholder’s demise. The death benefit is paid to the appointed nominee. Thus, the PMSBY scheme provides financial security to the families of the poor.

To subscribe to the PMSBY insurance scheme, you must meet the following requirements:

• You must be aged between 18 and 70 years at the time of applying for the insurance policy.
• You must have an active savings bank account.
• Your bank account should be linked to the Aadhaar card.
• If you have not linked Aadhar card to the bank account, you must submit a photocopy of the card along with the application form.
• You must pay the premium of Rs. 12 towards the insurance policy.

The Pradhan Mantri Suraksha Bima Yojana is offered only through the PSGICs – Public Sector General Insurance Companies, and in partnership with the participating banks. The banks have the flexibility to collaborate with any general insurance company to implement the scheme for the people.To apply for the PMSBY insurance scheme, you must download the application form http://www.jansuraksha.gov.in/Forms-PMSBY.aspx and submit it at the bank. You can also subscribe to the PMSBY scheme through net banking. And, some banks have initiated an SMS-based enrolment process.

The PMSBY coverage is offered for one year, starting from June 1 to May 31 of the following year. If you wish to continue your subscription beyond one year, you must give your consent to your bank to auto-debit the premium amount every year by May 31 for the subsequent years.

The primary objective of introducing the Pradhan Mantri Suraksha Yojana was to provide accident insurance to the poor and give their family financial protection in the event of any mishap. The premium is capped at Rs. 12 per year (plus service tax) to help the poor get insurance cover.What Is Excluded In Pradhan Mantri Suraksha Bima Yojana?
Pradhan Mantri Suraksha Bima Yojana is an insurance policy that offers cover against accident and disability, which means coverage amount will be given out on the vent of untimely death or disability. Though, there are few exclusions in this as death by suicide and temporary disabilities are not covered in this policy.

Pradhan Mantri Suraksha Bima Yojana is an insurance policy that offers cover against accident and disability, which means coverage amount will be given out on the vent of untimely death or disability. Though, there are few exclusions in this as death by suicide and temporary disabilities are not covered in this policy.

The only payment mode for paying the PMSBY premium is through auto-debit from your savings bank account. The premium must be paid in one instalment on or before June 1. However, if the auto-debit takes place after June 1, the coverage will begin from the date of auto-debit of the premium.

The Pradhan Mantri Suraksha Bima Yojana provides coverage against accidental death and disability after it is confirmed by documentary evidence. In the event of the policyholder’s demise due to an accident, the accident must be reported to the policy, and the hospital must clarify it.To claim the death benefit, the nominee (as mentioned in the policy enrolment form by the insured) must file a claim. In case of disability, the sum assured will be credited to the policyholder’s bank account. Final Word With so many benefits associated with the PMSBY, including nominal premium rate, death benefit up to 2 lakhs, it is one of the best social security schemes in India. It provides significant financial protection to the people from low-income sections of society.

The information contained herein is generic in nature and is meant for educational purposes only. Nothing here is to be construed as an investment or financial or taxation advice nor to be considered as an invitation or solicitation or advertisement for any financial product. Readers are advised to exercise discretion and should seek independent professional advice prior to making any investment decision in relation to any financial product. Aditya Birla Capital Group is not liable for any decision arising out of the use of this information.