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About Pradhan Mantri Suraksha Bima Yojana (PMSBY)

The Government of India initiates several schemes for the welfare of society and people. Different schemes are set to mitigate various public issues and help people live their lives peacefully. One such scheme that came into existence in May 2015 is the PMSBY scheme.

The PMSBY full form is Pradhan Mantri Suraksha Bima Yojana and the policy is available to the Indian citizens between the age of 18 years old 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 a period of one year, starting June 1 to May 31 of the subsequent year. It can be renewed 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 insurance coverage to the insured in case of their death or disability due to accident(s). The following table gives an overview of the various features and benefits of PMSBY.

Features of the PMSBY Scheme

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

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

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

  • As per convenience, applicants can choose between a long-term policy or an annually renewable plan.

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

  • It offers several tax benefits.

Benefits of PMSBY Scheme

  • The policy offers accidental insurance cover without having to spend 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:

An accident leading to the insured’s death

₹2 lakh, given to the beneficiaries of the policy

Permanent total disability

₹2 lakh

Permanent partial disability

₹1 lakh

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.

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

  • If the Aadhar 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 holders of the account 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.

Premium for Pradhan Mantri Suraksha Bima Yojana

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

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 the PMSBY form, which is available in most of the Indian official languages. The details in the form include the insured’s name, aadhar card number, contact information and nominee details.

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

Period of Enrolment for Pradhan Mantri Suraksha Bima Yojana

Anyone who wishes to enrol under the Pradhan Mantri Bima Yojana scheme needs to do it before June 1. The commencement period is from June 1 to May 31 of the subsequent year, which means the scheme is for a year. The insured can renew for PMSBY annually and set up an auto-debit facility with the associated savings bank account.

How to Enroll for Pradhan Mantri Suraksha Bima Yojana?

You can approach your local bank branch to subscribe to the PMSBY scheme. Having a bank account is a must as the premium gets auto-debited every month. In partnership with banks, Bajaj Allianz 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 as well.

The registration for the PMSBY policy can be initiated 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. Login 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 has to visit the bank and provide the requested details.

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

List of Banks Providing the PMSBY Scheme

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

Bank Names

Allahabad Bank

Corporation Bank

Karur Vysya Bank Ltd

State Bank of India

Andhra Bank

Dena Bank

Kotak Mahindra Bank Ltd

State Bank of Mysore

Axis Bank

Federal Bank Ltd

Lakshmi Vilas Bank

State Bank of Patiala

Bank of Baroda

HDFC Bank Ltd

Oriental Bank of Commerce

State Bank of Travancore

Bank of India

ICICI Bank Ltd

Punjab & Sind Bank

Syndicate Bank

Bank of Maharashtra

IDBI Bank Ltd

Punjab National Bank

UCO Bank

Bhartiya Mahila Bank

Indian Bank

Ratnakar Bank Ltd

Union Bank of India

Canara Bank

Indian Overseas Bank

South Indian Bank Ltd

United Bank of India

Central Bank of India

Induslnd Bank Ltd

State Bank of Bikaner & Jaipur

Vijaya Bank

City Union Bank Ltd

Jammu & Kashmir Bank Ltd

State Bank of Hyderabad

Yes Bank Ltd

Conditions for Termination of Pradhan Mantri Suraksha Bima Yojana

The accident 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. Rs 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 name of the insured 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. In case a nominee has not been appointed, in the case of death of the insured, the amount shall be transferred to his/her legal heir. This is done upon submission of the succession certificate from the legal heir. The maximum time allotted to the bank to finish the claim procedure is 30 days.

How To Renew Pradhan Mantri Suraksha Bima Yojana

The policy can be renewed by enabling the auto-debit facility of paying the premium amount. Once this amount is debited from your associated bank, the policy will be renewed automatically. The PMSBY scheme can be renewed on an annual basis 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. Login 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

Pradhan Mantri Suraksha Bima Yojana Vs Pradhan Mantri Jeevan Jyoti Bima Yojana

The main difference between PMSBY and PMJJBY is:

Type of insurance

Accident Insurance

Life Insurance

Maximum age limit to avail the benefits

70 years

50 years

Premium amount

₹12 p.a.

₹30 p.a.

Termination of assurance

  • Multiple bank accounts

  • 70 years or above

  • Insufficient bank balance will terminate the scheme

  • Multiple bank accounts

  • 55 years or above

  • Insufficient bank balance will terminate the scheme

Conclusion

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

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

Now, even if you are unable to qualify under the government-initiated schemes, you most definitely do not want to use all your life savings to cover the medical expenses. An adequate health insurance plan at Finserv MARKETS will cover these expenses for you and your loved ones.

In other regards, you are also responsible for securing the financial future of your family in your absence. For such situations, term insurance plans at Finserv MARKETS come in handy. You can avail life insurance coverage of up to ₹1 crore at affordable premiums.

Best Health Insurance Plans Available at Finserv MARKETS

FAQs

  • ✔️What is total disability?

    Complete loss of vision from both eyes or one eye or loss of two hands/feet or any one hand or foot.
  • ✔️How is the premium apportioned?

    Insurance premium to public sector or other general insurance companies - Rs. 10 p.a. Reimbursement of expenses to the agent - Rs. 1 p.a. Reimbursement of administrative expenses to the participating banks - Rs. 1 p.a.
  • ✔️How many master policy holders are there for the PMSBY scheme?

    There are over 28 participating banks who are the master policy holders of the PMSBY scheme.
  • ✔️What is the type of insurance coverage offered?

    It is an accident insurance coverage for death, total or partial disability.
  • ✔️Is there a toll free number for the PMSBY scheme?

    You can call 1800-180-1111 or 1800-110-001 for any queries.

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