Backed by the Union government, the Pradhan Mantri Suraksha Bima Yojana (PMSBY)is an accident insurance scheme for the poor and lower-income section of society. The scheme offers accidental disability and death cover for one year and can be annually renewed. Accidents, death, or disabilities caused by natural calamity is covered under PMSBY. But if the applicant commits suicide, the family does not get any benefit from it. Other than this, death due to murder is covered under the scheme but partial disability is excluded.
How and when to enroll?
The scheme has one year cover from June 1 to May 31 of next year. Insurance cover shall commence from the date when the premium was debited from account. The scheme will be offered by banks and will be administered through public sector general insurance companies. People can apply for this scheme from their homes too, through SMS or net banking. Or else the form can be downloaded from the official website and can be submitted to the banker.
Eligibility to apply
Any individual between 18-70 years of age with saving bank accounts is eligible to avail benefits of the scheme. In case of a joint bank account, all account holders can join the Pradhan Mantri Suraksha Bima Yojana. Though NRIs are also eligible to enroll in the scheme, the claim benefit will be paid only in Indian currency.
What are the benefits given under PMSBY?
Under the scheme, in total disability and accidental death cases, the risk coverage provided is Rs 2 lakh. While the risk coverage is Rs 1 lakh in cases of permanent partial disability. The Pradhan Mantri Suraksha Bima Yojana has no provision to reimburse hospital expenses, following any accidents which later might lead to any death or disability.
In addition to this, the Goods and Services Taxes (GST) is exempted from the scheme.
What is Insurance Premium?
According to the scheme, the premium payable is Rs 12 per annum, and that too per member. It will be exclusive of all taxes and through an auto-debit facility, the amount will be deducted every year, on or before June 1.
The accident cover might be restricted under some circumstances, including if the bank if gets closed, the applicant reaches the age of 70, or there is insufficient balance to keep insurance in force.