PMSBY Scheme: Benefits, Eligibility, Coverage & Enrollment

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 Pradhan Mantri Suraksha Bima Yojana (PMSBY).

The PMSBY scheme 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 INR 2 Lakh for accidental deaths and full disability, whereas it is INR 1 Lakh for partial disability. The premiums charged are only INR 12 per year, and the amount is auto-debited from your bank account.

To know everything related to the PMSBY scheme, keep reading.

What is Pradhan Mantri Suraksha Bima Yojana or PMSBY Scheme?

The PMSBY full form is Pradhan Mantri Suraksha Bima Yojana. It is a social security scheme announced by the government in the 2015 budget which offers a one-year accidental death and disability insurance coverage. 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 scheme helps the low-income earners in the society have adequate insurance coverage in case of death or disability in an accident. The following are the features and benefits of the scheme –

Features of the PMSBY Scheme

  • One can purchase the policy for a nominal amount of Rs. 12
  • The beneficiaries of the policy will receive the death benefit in case you (the policyholder) dies in an accident
  • The premium amount is auto-debited from the associated bank account
  • Choose between a long-term policy or annually renewable plan
  • The exit and re-entry measures are simple to understand
  • It offers tax benefits

Benefits of PMSBY Scheme

  • The policy offers accidental insurance cover without having to spend a lot of money
  • The policy financially takes care of the dependents in case of death
  • You (the policyholder) no longer have to worry about missing the premium due dates
  • The policy offers secure processing and continuous coverage
  • You (the policyholder) get the flexibility to either continue or discontinue the plan as per your wish
  • The premiums paid towards the plan can be claimed for tax deductions under Section 80C of the Income Tax Act. Also, the sum of up to INR 1 lakh receive by the beneficiaries is non-taxable under Section 10(10D)

Now let us take a look at the coverage of the PMSBY scheme.

Coverage of Pradhan Mantri Suraksha Bima Yojana

The PMSBY scheme offers the following coverage in case of –

  • An accident leading to your (the policyholder’s) death: INR 2 Lakh (given to the beneficiaries of the policy)
  • Permanent total disability: INR 2 Lakh
  • Permanent partial disability: INR 1 Lakh

What is not covered under Pradhan Mantri Suraksha Bima Yojana (PMSBY Scheme)?

As explained earlier, the PMSBY scheme is solely an accident and disability insurance cover. There are a few limitations when it comes to the cause of the death and nature of the disability. It is 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

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

  • Your Aadhar card must be furnished as a primary KYC document to be registered under this scheme. 

  • In case the Aadhar is not linked to the bank account, a copy of the Aadhar card must be attached with the PMSBY application form. 

  • You are eligible to join the scheme only through a single bank account. 

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

  • If you are a Non-Resident Indian, although eligible, the claim benefit will be paid to the insured/nominee in Rupees. 

Documents Required for PMSBY Scheme

You have to fill the PMSBY form which is available in most of the Indian official languages. The details include your name, Aadhar card number, contact information and Nominee details. Along with this, if your Aadhar card is not linked to your bank account, you have to submit an Aadhar copy. 

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 scheme 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

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  PMSBY Scheme

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

Rs. 12 p.a.

Rs. 30 p.a.

Termination of assurance

  • Multiple bank accounts

  • 70 years or above

  • Insufficient bank balance

  • Closes Account

  • Multiple bank accounts

  • 55 years or above

  • Insufficient bank balance

  • Closes Account

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 Rs. 1 crore at affordable premiums.

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.

Happy Customers of Finserv MARKETS

Getting a loan to take care of my wedding and relieving my parents to enjoy the occasion was the best decision I ever made. Easy-to-apply, amazing interest rate and quick disbursal, what more can one ask for!

I am passionate about the vehicle I drive. I want to protect it with the best available option. What amazed me was the full transparency, quick quotes and the attractive discount on the premium while choosing the annual payment option!

Check your personal loan eligibility in seconds!

My husband and I will finally move into our own house this Diwali. All thanks to Bajaj Finserv, with competitive interest rates, minimal processing fees and easy to repay EMIs, our dream saw the light of reality in no time!

Get the best FD interest rates starting @ 8.40%. Let's start!

Kids grow up fast and to fulfill their dream trip to Disneyland I had everything but instant funds. With no collateral or guarantor required and a hassle-free processing, I gifted my family a memorable trip to Orlando with just a click!

Get sum insured up to 1 Crore! Let's start!

The best way to start looking for health insurance is to do a close study of the coverage needs and checking the insurance company's claim ratio. No unnecessary jargons, easy to apply claims process and choice of premia!

Zero additional charge on part-payment option on Business loans! Let's start!

I bought my first iPhone using my Bajaj Finserv EMI Network Card. Zero downpayment with a No cost EMI on Bajaj Finserv EMI store just made my day!

Get home loan sanctioned online in 72 hours! Let's start!