PMSBY (Pradhan Mantri Suraksha Bima Yojana) Scheme was introduced by Narendra Modi Government on 2015 along with PMJJBY. Pradhan Mantri Suraksha Bima Yojana is intended to provide low-cost Accident and Disability coverage to common people.
In India, even though Life Insurance Corporation of India-the public sector giant- and many Private Insurers are striving hard to increase the insurance penetration, Still the majority of people are devoid of any insurance cover.
Naturally, if an accidental death or permanent disability occurs for the breadwinner of the family, the risk has to be suffered by the unfortunate family. It is great thinking from the ministry of India to address such a socio-economic problem through PMSBY scheme.
|Minimum Entry Age||18 Years|
|Maximum Entry Age||70 Years|
|Premium Per Annum||Rs. 12 + Service Tax (if Applicable)|
|Premium Mode||Directly Auto Debited From Bank Account (as a single instalment)|
|Accidental Death Coverage||Rs. 2,00,000|
|Total and irrecoverable loss of both eyes||Rs. 2,00,000|
|Loss of use of both hands or feet||Rs. 2,00,000|
|loss of sight of one eye and loss of use of one hand or one foot||Rs. 2,00,000|
|Total and irrecoverable loss of sight of one eye or loss of use of one hand or one foot||Rs. 1,00,000|
FAQs about Pradhan Mantri Suraksha Bima Yojana(PMSBY) scheme.
- What is the main benefit of PMSBY scheme?
Rs. 2,00,000/- in case of accidental death or permanent full disability and a sum of Rs. 1,00,000/- in case of partial but permanent disability.
- Who can join in PMSBY scheme?
Any person between the age of 18 and 70 with a savings bank account can join the scheme.
- How much premium one should pay to join PMSBY?
Rs. 12/- per person per year.
- How to pay the premium for PMSBY?
The only mode of premium payment available for PMSBY is through auto debit as a single installment from your bank account.
- How to enroll in PMSBY scheme?
A Consent cum Declaration form for Auto Debit of premium in prescribed format has to be provided at your bank. Aadhar card is considered as the KYC document for PMSBY.
Important points to remember while joining PMSBY.
- Maximum Accident and Disability coverage available per person is Rs. 200000 only.
- The scheme is for one year but will be renewed automatically every year.
- Insurance coverage ceases when the scheme holder attains an age of 55.
- Latest date for joining PMSBY was 31 August 2015.
- This scheme is materialized through all government-sponsored general insurance companies, while other insurance companies will have the option to join the program delivery by signing-up with banks.
- Premium paid under the scheme is eligible for Income Tax rebate under section 80C.
- Assurance may be terminated in case of closure of the bank account or if the Account balance is low and unable to debit the premium.
Download Rules regarding Pradhan Mantri Suraksha Bima Yojana (PMSBY).
Download Claim Form for PMSBY.
Download Enrolment form for PMSBY.
Anish L J is a ‘Financial Planner’ and member of Chartered Insurance Institute(CII), London and Insurance Institute of India. He is also a finance, insurance and software consultant. He thoroughly follows the developments in finance, insurance, and other related sectors.