The Pradhan Mantri Suraksha Bima Yojana (PMSBY) is an accident insurance scheme introduced by Government of India in May 2015. PMSBY is meant for lower income group of the society. However, PMSBY can benefits each and every one. Let us learn how it can benefit you.
“Nothing is more important than your life and your ability to make a living. So it makes sense to insure your greatest asset – you.” Author Unknown
Features of PMSBY
The major features of PMSBY are as below:
- It is an accident insurance policy. It cover death, permanent and partial disability. However, death by suicide and partial disability without irrecoverable loss are not covered unless specified otherwise.
- The insurance coverage is ₹2 lakh in case of death or permanent disability like total and irrecoverable loss of both eyes or loss of use of both hands or feet or loss of sight of one eye and loss of use of hand or foot. In case of partial disability like total and irrecoverable loss of sight of one eye or loss of use of one hand or foot coverage is ₹1 lakh.
- The premium is as low as ₹12/- per year. However, it may undergo review in case any claim arise.
- On occurrence of the event the money is paid to the policyholder, nominee or legal heir as may be the case.
- The premium amount is auto debited from the linked saving account of the policy holder.
- The policy can be subscribed for long term by paying aggregate premium or renew at the end of each year. The policy tenure is 1st June till 31st
- The policyholder can discontinue the policy and subscribe again if he or she wishes.
Eligibility criteria for PMSBY
This policy is available to all subject to fulfilment of following criteria’s
- The minimum age requirement for being part of the scheme is 18 years.
- The maximum age limit to avail this scheme is 70 years.
- Interested potential policyholders must have an active savings bank account.
- The applicant’s saving bank account should be integrated with the person’s Aadhaar card.
- In case the Aadhaar details are not linked to the mentioned bank account, a copy of the card should be sent along with the application.
How to enrol for PMSBY
PMSBY is implemented by Department of Financial Services, Ministry of Finance, Government of India and administered by General Insurance Companies. The scheme is distributed through participating bank. Anybody eligible and willing to enrol for PMSBY may approach one of these participating bank or insurance companies. In case of Bank, he or she should have account in that bank. The enrolment can be done by physically visiting the branch, online through SMS facility (if mobile number is registered with the bank) and internet banking. The step by step process is as given below:
Physical process – visit the branch, collect the PMSBY form, fill up all details like name, contact details, saving account number, Aadhaar number, and details of the selected nominee. Apart from English and Hindi, this form is also available in regional languages. In case the applicant’s Aadhaar card details are not linked to the stated savings bank account, the applicant will have to submit a copy of the Aadhaar card. The same will have to be accompanied with the application form.
Through SMS – the banks and insurance companies have toll free numbers for enrolling in PMSBY. Here’s how you can activate the policy using the SMS facility.
- Step 1 – Make call on the toll free number
- Step 2 — Receive activation SMS.
- Step 3 – Reply to the activation SMS with ‘PMSBY Y’.
- Step 4 – Receive a message acknowledging the receipt.
- Step 5 – Bank will manage the processing information from the back-end of the savings account.
Through internet banking – to avail this facility the subscribe need to have internet banking facility in the account. Here’s how you can activate the policy using the internet banking facility.
- Step 1 – Login to the internet banking account.
- Step 2 – Click on Insurance.
- Step 3 – Identify the account to be used for paying the premium amount.
- Step 4 – Check details and confirm.
- Step 5 – Download receipt and note the stated reference number.
Benefits of PMSBY
The major benefits of this scheme are
- Simple and cheap accidental insurance cover without much terms and conditions.
- The nominee will receive the amount to overcome the grief or to handle the disability of policyholder.
- The policy get renewed with auto-debit facility. Thereby the policy remain valid as long as the account has sufficient money to debit.
- The policy can be discontinued and renewed as per wish of the policyholder.
- Deduction as per Section 80C and Sum Insured of ₹ 1 lakh is non-taxable as per Section 10(10D) of the Income Tax Act.
Claim Process of PMSBY
Like the policy, the claim process is also simple. The policyholder can raise the claim in case of partial or total disability. In case of death, nominee can file a claim. In absence of nominee, the claim amount is paid to the legal heir of the deceased policyholder. Here’s the claim process.
Step 1 – Policyholder/nominee should reach out to the bank or the insurance company from where the policy was purchased to raise a claim.
- Step 2 – Obtain claim form and fill it with details as required therein.
- Step 3 – Submit the filled form with the relevant supporting documentation such as identity proof, crossed cheque, disability certificate or death certificate etc.
- Step 4 – The insurance company will cross the details to confirm genuineness.
- Step 5 – If the claim and documents are found genuine, the claim amount will be transferred to the specified bank account.
Frequently Asked Questions
Listed below are commonly asked questions related to PMSBY.
Which organisations are responsible for administering and offering the scheme?
This scheme is administered by general Insurance companies who offer the product with necessary approvals on similar terms as mooted by Government. The insurance company need to tie up Banks for enrolling their customer for this policy.
Are joint account holders eligible for the scheme?
Yes joint account holders eligible for the scheme.
Which organisation will be known as the Master Policyholder?
The participating bank will be the master policyholder under which individuals will be enrolled.
When will the policy be terminated?
The policy will be terminated under following circumstances.
- The policyholder attains age 70 years.
- There is no sufficient balance in the account to debit for renewal premium.
- The policyholder voluntarily discontinues the policy.
- There is multiple policy issued to same policyholder. Only one policy is allowed per person.
- The policyholder expires and claim is settled.
Does the scheme cover death by murder?
Yes. Such unnatural death are also included in the policy.
Is death or disability due to natural calamities covered?
Yes. Death or disability due to natural calamities are included.
Is it possible for a Non-resident Indian to be a part of this scheme?
Yes. Non-Resident Indian can also participate in the scheme.
Will the policy reimburse expenses related to the hospitalisation in case of an accident?
No. there is no provision to reimburse expenses under this scheme.
Is it necessary to support accidental death claims with documentary evidence?
Yes. Supporting documents like police FIR in case of death due to car accident, hospitalisation details etc are required.
Will This Cover Be In Addition To Cover Under Any Other Insurance Scheme The Subscriber May Be Covered Under?
Yes. The member may choose to take any other accident insurance along with PMSBY. However, PMSBY is only one per person.