Pradhan Mantri Suraksha Bima Yojana (PMSBY) - Features and Benefits

What is the Pradhan Mantri Suraksha Bima Yojana (PMSBY)?

The Government of India initiates several schemes for the welfare of the society and its people. Different schemes are set to mitigate various public issues and help people lead a better life. One such scheme that came into existence in May 2015 is the PMSBY scheme.

The PMSBY full form is Pradhan Mantri Suraksha Bima Yojana. This health insurance policy is available to Indian citizens between 18 and 70 years old with an active savings account. It offers risk coverage of ₹2 lakh for accidental deaths and full disability and ₹1 lakh for partial disability. The premium for PMSBY is only ₹12 per year, and the amount is auto-debited from the bank account. The coverage is for one year, starting June 1 to May 31 of the subsequent year. You can renew it annually.

Features and Benefits of Pradhan Mantri Suraksha Bima Yojana

The PMSBY policy is ideally a financial aid for economically backward families in India. It provides adequate health insurance coverage to the insured in case of their death or disability due to accident(s). Let’s further explore the features and benefits of PMSBY.

Features of the PMSBY Scheme

• One can purchase the policy for a nominal amount of ₹12.

• The policy's beneficiaries will receive the death benefit after the insured’s unfortunate demise in an accident.

• The health insurance premium amount is auto-debited from the linked savings bank account.

• Applicants can choose between a long-term policy or an annually renewable plan as per convenience.

• The exit and re-entry measures are simple to understand.

• It offers several tax benefits.

Benefits of PMSBY Scheme

• This health insurance policy offers accidental insurance cover without spending a lot of money.

• The policy provides financial aid to the dependents if the insured dies in an accident.

• With the auto-debit option, the insured no longer has to worry about missing the premium due dates.

• The policy offers secure processing and continuous coverage.

• The insured gets the flexibility to either continue or discontinue the plan as per their wish.

• The premiums paid towards the plan can be claimed for tax deductions under Section 80C of the old income tax regime. Also, the sum of up to ₹1 lakh received by the beneficiaries is non-taxable under Section 10(10D) of the Income Tax Act, 1961.

Coverage of Pradhan Mantri Suraksha Bima Yojana

The PMSBY policy offers the following coverage in case of:

What is Not Covered Under Pradhan Mantri Suraksha Bima Yojana?

As explained earlier, the PMSBY policy is solely an accident and disability insurance cover. A few limitations when it comes to the cause of the death and nature of the disability are as follows:

• The policy does not cover death due to suicide

• Non-permanent disabilities (that is, partial disabilities without irrecoverable loss) are not covered

Eligibility Criteria of Pradhan Mantri Suraksha Bima Yojana

The applicant should fulfil the following eligibility criteria to apply for PMSBY:

• Any person in the age group of 18 to 70 years with a savings account.

• Aadhaar Card must be furnished as a primary KYC document.

• If the Aadhaar Card is not linked to the savings bank account, a copy of the same should be attached to the PMSBY application form.

• The applicant can join the scheme only through a single bank account.

• In the case of a joint account, all account holders can join the scheme.

• If the applicant is a Non-Resident Indian (NRI), although eligible, the claim benefit will be paid to the insured/nominee in Rupees

Documents Required for Pradhan Mantri Suraksha Bima Yojana

To enrol under PMSBY, you need the following document(s):

• PMSBY Application Form: The insured has to fill out the PMSBY form, which is available in most Indian official languages. The details in the form include the insured’s name, Aadhaar card number, contact information, and nominee details.

• Aadhaar Card: Ideally, the insured’s savings bank account should be linked to his/her Aadhaar card. If it is not linked, the insured must submit a copy of this card with the PMSBY application form.

How to Enrol for Pradhan Mantri Suraksha Bima Yojana?

You can approach your local bank branch to subscribe to the PMSBY scheme. A bank account is a must as the premium gets auto-debited every month. In partnership with banks, Bajaj Allianz health insurance is one of the few insurance companies that offer services under this scheme.

The application form can also be downloaded from the government’s Jansuraksha website https://jansuraksha.gov.in/Forms-PMSBY.aspx and is available in multiple languages.

You can register for the PMSBY policy via the internet banking facility of your respective bank. It can also be done by sending a message on the onboarding organisation’s toll-free number.

To activate the policy using the SMS facility, follow these steps:

1. Receive activation SMS

2. Reply to the message with ‘PMSBY Y’

3. Receive the acknowledgement receipt

4. The bank will proceed to manage and verify the information from its end

To activate the policy using the internet banking facility, follow these steps:

1. Log in to the respective internet banking account

2. Click on insurance

3. Choose the account to be linked for paying the premiums

4. Check the details and confirm

5. Download the receipt and note down the reference number

Points to be Noted:

• The bank will obtain nominee details such as their relationship with the insured, date of birth, etc., from the savings account. However, if this information is unavailable, the insured must visit the bank and provide the requested details.

• If the auto-debit transaction fails, the PMSBY policy will terminate.

Premium for Pradhan Mantri Suraksha Bima Yojana

Much like any government-initiated scheme, PMSBY is available to Indian citizens for a nominal price of ₹12 per year. This amount is deducted directly from the linked savings bank account of the insured on an annual basis. The premium is deducted on or before June 1 each year.

List of Banks Providing the PMSBY Scheme

The following is the list of banks that offer the PMSBY scheme enrollment at their branches:

Conditions for Termination of Pradhan Mantri Suraksha Bima Yojana

The insurance cover will be terminated under the following circumstances:

• Once you attain 70 years of age

• If you do not have a minimum balance in your savings account to pay the premium, i.e. ₹12 per annum

• If you have multiple accounts, the insurance premium amount will be auto-debited from one account, and the extra premium will be forfeited.

• If the insurance cover is terminated due to technical reasons or insufficient balance, it can be reinstated after the premium is paid in full.

Claim Process of Pradhan Mantri Suraksha Bima Yojana

The claim process of PMSBY is completed in 5 easy steps.

• Step 1: The insured or the nominee must immediately inform the bank about the accident.

• Step 2: The PMSBY claim form can be obtained from the designated bank or the insurance company’s website, which must be completed and submitted to the bank (offline or online) within 30 days of the accident. It must be submitted along with the FIR, post mortem report, or death certificate. In the case of total or partial disability, the disability certificate must be provided, which is issued by a civil surgeon. A discharge certificate must also be enclosed.

• Step 3: The bank will verify the documents and details, after which the case is forwarded to the insurance company within 30 days of claim submission.

• Step 4: After confirmation of the insured's name in the list of the insured persons in the master policy, the claim is processed within 30 days of receiving the documents from the bank.

• Step 5: The claim amount is then deposited into the nominee/insured’s account. If a nominee is not appointed, the amount is transferred to the legal heir after the insured's death. However, the legal heir has to submit the succession certificate. The maximum time allotted to the bank to finish the claim procedure is 30 days.

How to Renew Pradhan Mantri Suraksha Bima Yojana

You can enable the auto-debit facility of paying the premium amount to auto-renew the policy. Once this amount is debited from your associated bank, the policy will automatically renew. The PMSBY scheme can be renewed annually and has a duration of June 1 to May 31. It is advisable to renew the plan before the end of May.

How to Check PMSBY Application Status?

The steps below will help you check the PMSBY’s application status:

1. Visit your bank’s official website

2. Log in to the internet banking portal

3. Visit the appropriate PMSBY section

4. Enter your account number

5. Enter the PMSBY application number

6. Click ‘Submit’

7. The application status will be displayed on the screen

Conclusion

Health insurance in today’s world is a necessity. Even the government is looking for ways to offer basic health insurance for everyone in India. That way, people no longer have to worry about treatment costs and can avail healthcare services when needed.

You can also read the features and benefits of another government scheme, PMJAY, which offers healthcare services to Indian citizens who cannot afford health insurance for themselves and their families.

Now, even if you do not qualify for government-initiated schemes, you do not want to use all your life savings to cover your medical expenses. An adequate health insurance plan at Finserv MARKETS will cover these expenses for you and your loved ones. You are also responsible for securing your family's financial future in your absence. For such situations, term insurance plans come in handy. You can avail life insurance coverage of up to ₹1 crore at affordable premiums.

Best Health Insurance Plans Available at Bajaj MARKETS