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Pradhan Mantri Suraksha Bima Yojana

Know in detail about the Pradhan Mantri Suraksha Bima Yojana.

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Insurance is an investment that is essential to maintain an untroubled life. It is a promise of a financial cushion for unpredictable times. The Government of India has launched an accident insurance scheme called Pradhan Mantri Suraksha Bima Yojana. It is an initiative to provide insurance to the large population of India that remains uninsured.

In a country like India with significantly high population, the government takes several steps to ensure each individual lives a safe and secure life.

While there are many types of investments that allow wealth creation, it is always favorable to set up a steady financial relief source to prepare for unforeseen circumstances. Pradhan Mantri Suraksha Bima Yojana is specifically designed for this purpose. 

What is Pradhan Mantri Suraksha Bima Yojana? 

Pradhan Mantri Suraksha Bima Yojana, as an insurance scheme offers accidental death and disability cover to individuals. The plan offers a one-year cover which is renewable from year to year.

It is provided by the Public Sector General Insurance Companies or any other General Insurance Company; if they are willing to offer the product on similar terms with necessary approvals and tie-up with banks for this purpose.

Under the Pradhan Mantri Suraksha Bima Yojana, all savings bank account holders between 18 and 70 years of age can opt for the cover. In case an individual holds multiple savings bank accounts, he will be eligible for the scheme through one savings bank account only. The primary KYC document for the Pradhan Mantri Suraksha Bima Yojana is Aadhar Card.  

Every individual has varying financial requirements depending on their lifestyle. The Pradhan Mantri Suraksha Bima Yojana may serve as an additional layer of financial security over an existing plan. It is best to calculate term insurance coverage that your family requires to live comfortably in the future. It will help ensure long-term protection and avail of the Pradhan Mantri Suraksha Bima Yojana benefits. 

Benefits and Features of Pradhan Mantri Suraksha Bima Yojana 

Let's look at the features and benefits in detail to avail of the Pradhan Mantri Suraksha Bima Yojana services effectively.

  • The scheme covers one year starting from June 1 to May 31 of subsequent year. You can renew it annually by paying the premium in the last week of May every year.
  • An individual can subscribe to the Pradhan Mantri Suraksha Bima Yojana anytime during the earlier mentioned period. 
  • A premium of Rs.12/- per annum per member applies to the scheme. It will be deducted from the policyholder's savings account in one installment through the 'auto-debit' facility.
  • Similar to any other insurance policy, Pradhan Mantri Suraksha Bima Yojana offers financial compensation to the nominee in the unfortunate case of the policyholder's loss of life.
  • You can join the scheme by downloading the Pradhan Mantri Suraksha Bima Yojana form and submit it to your banker. Alternatively, there are options to activate it through SMS or netbanking as well.

Here are the benefits offered under Pradhan Mantri Suraksha Bima Yojana:

 

Table of Benefits

Sum Insured

a.

In the event of death

Rs. 2 Lakhs

b.

Total and irrecoverable loss of both eyes or loss of use of both hands or feet or loss of sight of one eye & loss of use of a hand or foot

Rs. 2 Lakhs

c.

Total and irrecoverable loss of sight of one eye or loss of use of one hand or foot

Rs. 1 Lakh

There are no maturity benefits available under Pradhan Mantri Suraksha Bima Yojana. 

Highlights of Pradhan Mantri Suraksha Bima Yojana 

Pradhan Mantri Suraksha Bima Yojana aims to offer financial assistance in times of crisis to India's lower-income population. Here are the highlights of the accident insurance scheme:

Eligibility 

Any individual between the age of 18-70 years with a savings bank account is eligible to apply for this Yojana. Account-holders must consent to join/enable auto-debit, as per the modality to enroll in the scheme. 

Policy Period 

The policy covers one year starting from June 1 to May 31 of next year. Individuals enrolling in the scheme on or after June 1, the cover shall begin from the date of premium payment and end on May 31 of next year. 

Renewal

Pradhan Mantri Suraksha Bima Yojana allows renewal of the cover on an annual basis. The policyholder must give their consent to enable the auto-debit facility on or before May 31 for the coverage period of June 1 to May 31 on an annual renewal basis.

Policy Period 

The policy covers one year starting from June 1 to May 31 of next year. Individuals enrolling in the scheme on or after June 1, the cover shall begin from the date of premium payment and end on May 31 of next year. 

Renewal

Pradhan Mantri Suraksha Bima Yojana allows renewal of the cover on an annual basis. The policyholder must give their consent to enable the auto-debit facility on or before May 31 for the coverage period of June 1 to May 31 on an annual renewal basis.

 

Risk Coverage 

The maximum coverage offered under the Pradhan Mantri Suraksha Bima Yojana extends upto Rs. 2 Lakhs. The cover is subject to the exclusions of the policy.

Exclusions 

Accidents or disability caused due to natural calamities is covered under the Pradhan Mantri Suraksha Bima Yojana. However, loss of life due to intentional self-injury does not come under the provision of the scheme.

Payment Mode

Pradhan Mantri Suraksha Bima Yojana allows only one mode of payment for premium, which is auto-debit from the policyholder's savings account. Unless the account holder files a cancellation request for the same, the premium will be auto-debited during the last week of May of every year, effectively renewing the policy. 

Master Policy Holder 

The participating bank, with which the policyholder has a savings account, will act as the Master Policy Holder for the participating subscribers.

Affordability 

Unlike the insurance policies that offer cover for a high premium cost, the Pradhan Mantri Suraksha Bima Yojana provides financial assistance at a minimal premium.

Ease

Many people are deterred from purchasing an insurance policy due to the overwhelming formalities associated with it. The Pradhan Mantri Suraksha Bima Yojana eliminates the worries of keeping up with the periodic premiums since the one-time premium is debited automatically from the policyholder's savings account. 

Terms and Conditions Related to Pradhan Mantri Suraksha Bima Yojana 

The eligible individual can avail of the Pradhan Mantri Suraksha Bima Yojana benefits if they comply with the following terms and conditions. 

1. If an individual holds multiple savings bank accounts, the account holder can only apply for one Pradhan Mantri Suraksha Bima Yojana policy. If various policies are active, the premiums will be refunded to the respective accounts, and no claims will apply to the additional policy requests. 

2. The scheme will remain active as long as the account holder pays the premiums annually until 70.

3. Pradhan Mantri Suraksha Bima Yojana recognizes the customer response received through their registered mobile number as their consent for the premium auto-debit. 

4. The policy will not be renewed if the account holder's mobile number is not updated in the savings account.

1. If an individual holds multiple savings bank accounts, the account holder can only apply for one Pradhan Mantri Suraksha Bima Yojana policy. If various policies are active, the premiums will be refunded to the respective accounts, and no claims will apply to the additional policy requests. 

2. The scheme will remain active as long as the account holder pays the premiums annually until 70.

3. Pradhan Mantri Suraksha Bima Yojana recognizes the customer response received through their registered mobile number as their consent for the premium auto-debit. 

4. The policy will not be renewed if the account holder's mobile number is not updated in the savings account.

 

 

5. The premiums will be auto-debited from the savings account annually. If the customer wishes to cancel the Pradhan Mantri Suraksha Bima Yojana subscription, a request must be filed on time

6. In case any information provided by the account holder turns out to be untrue, the policy is liable to cancellation, and all premiums shall stand forfeited.  

How to Apply for Pradhan Mantri Suraksha Bima Yojana? 

An eligible individual can apply for the Pradhan Mantri Suraksha Bima Yojana by approaching an affiliated bank or an insurance provider. The government's Jansuraksha website also allows you to download the Pradhan Mantri Suraksha Bima Yojana form in different languages.

Pradhan Mantri Suraksha Bima Yojana certificate download will allow you to avail of the scheme's benefits. Here's a sample of how you can apply for the Pradhan Mantri Suraksha Bima Yojana through the SMS facility:

  • Eligible customers receive an activation SMS
  • Reply 'PMSBY Y' to activate the scheme
  • You will receive an acknowledgment message for the receipt of the response
  • The Bank will manage the processing information such as nominee relationship and details from the savings account.

In case, the required details are not available in core banking records, the confirmation will not be taken ahead for processing. Customer may then apply from the nearest branch/net banking.

Here's a sample process to apply for the Pradhan Mantri Suraksha Bima Yojana using NetBanking:

  • Log in to the internet banking of the respective Bank
  • Click on the Insurance tab and select the Pradhan Mantri Suraksha Bima Yojana option
  • Choose the account to be used for paying the premium amount
  • Review all the details and confirm
  • Download the receipt of confirmation and note the unique reference number

Frequently Asked Questions (FAQs)

Q. Which organizations are responsible for offering and administering the scheme? 

A. The Pradhan Mantri Suraksha Bima Yojana is offered/administered through the Public Sector General Insurance Companies (PSGICs) and other insurance companies willing to provide the product with necessary approvals on similar terms, in collaboration with participating Banks.

Q. Is it possible to re-join the scheme after canceling it? 

A. Yes, individuals who exit the scheme at any point are eligible to re-join the Pradhan Mantri Suraksha Bima Yojana in the future by paying the annual premium.

Q. Are joint account holders eligible for the scheme?

A. Yes, joint account holders can avail of the benefits of the Pradhan Mantri Suraksha Bima Yojana.

Q. Does the scheme follow the financial year pattern for the policy period?

A. Pradhan Mantri Suraksha Bima Yojana does not follow the financial year pattern. It offers coverage for the period between June 1 and May 31.

Q. When will the policy be terminated? ?

A. In case the policyholder closes the bank account, has insufficient balance, or reaches the age of 70, Pradhan Mantri Suraksha Bima Yojana will be terminated. Additionally, if multiple premiums have been deducted from a different savings account, the policy will be cancelled as well.

 

Sources

https://jansuraksha.gov.in/Files/PMSBY/English/Rules.pdf

https://financialservices.gov.in/insurance-divisions/Government-Sponsored-Socially-Oriented-Insurance-Schemes/Pradhan-Mantri-Suraksha-Bima-Yojana(PMSBY) (Sep’21)

http://uplabour.gov.in/lc/StaticPages/FAQ-PMSBY.aspx , Last updated on 1st September, 2021

https://transformingindia.mygov.in/scheme/pradhan-mantri-suraksha-bima-yojana/#intro 

https://datia.nic.in/en/service/pradhan-mantri-suraksha-bima-yojana/ (July’2021)

ARN No.: Sept21/Bg/15B

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