Pradhan Mantri Suraksha Bima Yojana (PMSBY): Benefits, features, and more

Date : 15/10/2020
Read: 6 mins

Here is all the information that you need about the Pradhan Mantri Suraksha Bima Yojana (PMSBY)

Pradhan Mantri Suraksha Bima Yojana (PMSBY) Benefits, features, and more

The Pradhan Mantri Suraksha Bima Yojana (PMSBY) is a personal accident insurance scheme announced by the Government of India. Introduced in the Union Budget in 2015, it offers protection against accidental death, permanent partial disability, and permanent complete disability. It is also referred to as the Rs 12 PM insurance scheme and is targeted at people from low income groups.

The PMSBY scheme is offered by banks in partnership with public sector general insurance companies and other insurers. The PMSBY age limit covers people aged 18–70 years. The annual premium for the scheme is only Rs 12 and is deducted through auto-debit from the bank of the account holder in return for the insurance cover.

The insurance amount can be claimed by the policyholder, nominee of the policy, or the legal heir. In case of a mishap covered under the policy, one needs to inform the bank within 30 days. The bank collects the information and passes it on to the insurance provider. After all documents and data are analysed and verified, the amount is credited to the bank account of the claimant.

Terms and conditions of the PMSBY scheme

Here is a list of requirements to be met to qualify for the PMSBY scheme:

You need to be at least 18 years old.
You cannot be older than 70 years.
You must have an active savings bank account.
Your savings bank account must be linked to your Aadhaar number; if it’s not, you should attach a copy of your Aadhaar card with your application form.
The policy is open to both residents as well as non-resident Indians (NRIs).

Inclusions in the PMSBY scheme

The PMSBY insurance scheme covers the following:

Accidental death due to an accident, murder, or natural calamity.
Partial disability such as loss of a hand, leg, or an eye.
Complete disability such as loss of one or both hands or feet, loss of eyesight, etc.
Only permanent and irrecoverable disability is included in the Yojana.

Exclusions in the PMSBY scheme

The following are not covered under the scheme:

Death due to accident by suicide or attempted suicide.
Death or disability because of self-inflicted injuries.
Disability suffered within 45 days after the purchase of the policy.
Coverage offered by the PMSBY scheme

The risk coverage offered under the PMSBY scheme is as follows:

In case of accidental death, the policyholder can get a compensation of Rs 2 lakh.
In case of permanent partial disability, the policyholder is eligible for a compensation of Rs 1 lakh.
In case of permanent complete disability, the policyholder is eligible for a compensation of Rs 2 lakh.

Enrolment process for the PMSBY scheme

In order to enrol for the scheme, you need to contact one of the affiliated insurance companies or banks to collect the application form. The form can also be found on the government’s official website and can be downloaded in multiple languages.

There are two ways to register: via netbanking, or by sending an SMS to a toll-free number. If you choose the netbanking option, you can log into your bank’s website and click on ‘insurance’. You will be asked to select the account to enable auto-debit of the premiums.

With the SMS method, you will receive an activation message after you contact the toll-free number. You need to then reply to this message with ‘PMSBY Y’ to show your consent to join. The concerned bank will process the information and enrol you into the scheme.

Claim process for the PMSBY scheme

In case of an unfortunate event covered under the insurance scheme, you need to submit a claim form to the bank. The nominee and legal heir can fill in the form in case of demise of the policyholder. However, in case of disability, only the policyholder can fill the form.

You may be asked for the following documents:

Identity proof of the nominee or legal heir.
Bank account details of the nominee or legal heir.
First information report (FIR) in case of death or disability in an accident or criminal activity.
Post-mortem report.
Death certificate.
Hospital bills or records in case of hospitalisation.
Disability certificate issued by a certified doctor.
Termination of coverage under the PMSBY scheme

Your coverage can be cancelled in the following circumstances:

If you cross the age of 70 years.
If there is inadequate balance in your account to pay the premium or if you close your bank account. (However, the scheme can be renewed once your bank account is functioning and has sufficient balance.)
Remember, if you register for the scheme from more than one bank account, only one insurance cover will be considered and the registration from the second bank account will be automatically cancelled.

Pradhan Mantri Jeevan Jyoti Bima Yojana (PMJJBY) versus Pradhan Mantri Suraksha Bima Yojana (PMSBY)

Pradhan Mantri Jeevan Jyoti Bima Yojana (PMJJBY) is a life insurance plan whereas PMSBY is a personal accident scheme. The PMJJBY policy is also offered by banks and life insurance companies. Both PMJJBY and PMSBY are voluntary schemes designed for low-income groups.

Both these schemes are valid for only one year, after which they need to be renewed. The PMJJBY renewal process is the same as for PMSBY and needs to be initiated before 31 March each year. PMJJBY age limit is fixed at 18–50 years.

Last words

The Pradhan Mantri Suraksha Bima Yojana is a useful and cost-effective insurance scheme that can help people of limited means. The annual premium of Rs 12 is affordable and the cover of up to Rs 2 lakh can help families continue with their lives even in the event of an unfortunate setback. Do you know these 7 Government schemes that are aimed to aid economic development and financial stability that you can benefit from?