When I first heard about PMSBY – Pradhan Mantri Suraksha Bima Yojana, the first thought that came on my mind is “It is a government insurance scheme. Hence, it is going to be a hectic and lot of paperwork process that cannot be availed by everyone. There are going to be a cut off on the eligibility”. But to my surprise, this is a very simple and affordable insurance scheme introduced by our government of India. Also, all the adults are eligible for this scheme without any criteria. Let’s see further about PMSBY in this article.
What is PMSBY – Pradhan Mantri Suraksha Bima Yojana?
PMSBY is an accidental insurance scheme launched by the Public Sector General Insurance company (PSGIC) and other insurance companies in 2015. This is almost like a term life insurance plan that we apply on private insurance company. PMSBY basically covers for death, partial or permanent disability of a contributor. The total coverage is going to be Rs.2 Lakhs and the premium is just Rs.20 per year.
A Real-life Situation:
One of my friends has lost her father in an unexpected accident. Her father is a bread winner of their family. After the death of her father, the family had a severe financial crisis. They didn’t know what to do.
Thats when, I realized the importance of term insurance. If at all her father availed for any term insurance, the family would have been peaceful without any financial problem.
In spite of it, our government has taken an initiative for term insurance with the coverage of Rs.2 Lakhs you can avail just by paying Rs.20 per year as a premium.
Features:
Type of scheme: Accidental/ Disability coverage.
Coverage amount: If the subscriber is dead or permanently disabled, the coverage amount is Rs.2 Lakhs.
Premium: The premium amount is automatically deducted in their respected banks. Yearly premium is Rs.20 including tax.
Renewal: It is a yearly plan. You need to renew the policy each year.
Auto-debit: Individual has to provide consent for automatic deduction of the contribution.
Application: You can join PMSBY scheme in almost all banks or post office.
Enrolment Period: This is a one-year plan from 1st June to 31st May. To join this scheme, the individual must enroll before May 31.
Cause of death or disability: You get the coverage only for unexpected accidents, murder or natural disaster but you cannot claim for suicide.
Termination: If the contributor is above 70 years, on closure of the bank account and insufficient balance will lead to termination of the coverage.
Tax Benefits: Tax is exempted under section 80C and also, the coverage amount is tax free.
Where to avail:
- Though the contributor has multiple bank account/Post office account, the individual can avail this scheme in any one account.
- Suppose, you paid the insurance in multiple account, only one contribution is considered.
Benefits:
Death benefits of PMSBY:
On the death of the contributor, his/her family or nominee will get the coverage amount of Rs.2 Lakhs.
Permanent Disability:
In case, if the contributor lost his/her both the eyes or hands or feet in the unexpected accident or he/she may be paralyzed in such situation, the contributor gets Rs.2 Lakhs as coverage.
Partial Disability:
Suppose, if the contributor lost a single eye or feet/ hand due to accident that leads to disability, the contributor gets Rs. 1 Lakh as a coverage amount.
Eligibility:
- Age limit is between 18 to 70 years.
- You must have a savings account in participated banks to avail PMSBY.
- Contributor must give a consent to auto debit the premium from the account.
- All Indian citizens can join this scheme in their respected banks or post office.
- Even NRI’s can join the scheme.
Documents Required for PMSBY – Pradhan Mantri Suraksha Bima Yojana:
- Aadhar card for KYC process.
- Account details.
Application Process:
Online:
- Visit your bank website and login with your internet banking credentials.
- Search for the PMSBY scheme
- Fill the form, verify and accept the terms and condition
- Click on submit and download the acknowledgement.
Offline:
- Visit your bank.
- Request for the PMSBY scheme form. Also, you can download the application form.
- Fill up the form, and submit it along with the required documents such as account number, Aadhar number, and nominee details.
- Get the acknowledgment slip for future use.
How to claim?
- Firstly, the accident should be reported to Police and should be certified by the hospital for either the death or permanent disability.
- Download the claim form and submit it to the respected bank.
- The claim amount will be paid to the insurer account in case of disability or to the nominee/ legal heir bank account if the insurer is dead.
Final thoughts:
We always think that accidental insurance is only for rich people with high income. But our government has launched a scheme with the aim of giving financial security for the needful. I am sure, it is not going to make us rich, but a small contribution like Rs.20 each year can at least bring a temporary peace among our loved ones. So, you can make use of this article and apply for the PMSBY – Pradhan Mantri Suraksha Bima Yojana scheme in your bank or Post office.
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FAQs:
If the insurer committed suicide, will the insurer family get the coverage amount?
No.
Are all the members of the joint account being eligible for this scheme?
Yes
I have a multiple bank account. Can I join this scheme in all banks?
No. Eligible can avail only in one bank.
Does the person died because of natural disaster eligible to get the coverage?
Yes.
Can I rejoin the scheme after an interval?
Yes, you can rejoin the scheme at any time.