Pradhan Mantri Suraksha Bima Yojana (PMSBY) is an accident insurance scheme provided by the Government of India. It offers cover against disability and accidental death for one year. It is a scheme that can be renewed annually. The scheme is most beneficial to the lower-income section of society.
The PMSBY scheme was officially launched on May 8, 2015, by Prime Minister Narendra Modi.
Eligibility for PMSBY
The person should be between 18 to 70 years and should have a savings bank account.
NRI’s can also join the scheme. They will however receive all claims in Indian currency.
What is covered and not covered in the scheme?
Accidental death, disabilities as mentioned in the PMSBY, death due to murder are covered while death due to suicide, or cases of partial disability are not covered under PMSBY.
How does one enroll in PMSBY?
The enrollment process is offered through public sector general insurance companies and banks. A person can apply through net banking or SMS or download the form from the official website and submit to a bank offering enrollment services for PMSBY.
The PMSBY scheme runs from June 1 to May 31. If a person enrolls on or after June 1, the cover will start from the date the premium was debited from the account until May 31 of the next year.
One person can join the scheme only through one bank account.
What is the sum insured and premium payable under the PMSBY scheme?
The total limit of the amount that can be claimed under the PMSBY scheme is Rs 2 lakh only.
The total sum insured in case of death is Rs 2 lakh.
In case of total and irrecoverable loss of both eyes or both hands or feet or loss of sight of one eye and one hand or foot, the sum insured is Rs 2 lakh.
In case of total and irrecoverable loss of sight of one eye or loss of use of one hand or foot, the sum insured is Rs 1 lakh.
The premium payable is Rs 12 per annum per member (exclusive of all taxes). The premium will be auto-debited from the individual’s account on or before June 1 every year. The Goods and Services Taxes (GST) is also exempted from PMSBY.
In what cases, the PMSBY scheme will get terminated?
The PMSBY scheme will stand terminated when an individual attains 70 years of age, or there is not sufficient balance in the account to fund the insurance, or if the bank is shut down.
How to activate an application under the PMSBY scheme?
To activate an application under the PMSBY scheme, an individual should have a savings bank account that he or she needs to login to enable net banking to set up auto-debit payment mode for the premium deduction for the policy and follow the process further to activate the scheme accordingly.