Insurance is an essential service to enrol on. Times are unpredictable, and you never know what comes your way. Insurance is a soft bed to free fall on when the going gets tough. The government actively acknowledges the importance of insurance and hence has started its own insurance scheme known as Pradhan Mantri Suraksha Bima Yojana (PMSBY).

About the Pradhan Mantri Suraksha Bima Yojana (PMSBY)

The Pradhan Mantri Suraksha Bima Yojana (PMSBY) is an accident and disability insurance scheme where it covers the policyholder in cases like death and disability. There are, however, certain restrictions to the cause of death and the nature of the disability. For example, death by suicide is not covered under the PM Suraksha Bima Yojana. In the case of non-permanent disabilities or even partial disability without irrecoverable loss, the benefits of the scheme will not be applicable.

How to apply for Pradhan Mantri Suraksha Bima Yojana (PMSBY)?

Public Sector General Insurance Companies (PSGICs) and other general insurance companies, in partnership with participating banks, administer and manage the scheme.

Individuals can register by approaching an affiliated bank or insurance firm. You can also do so by downloading the form from the government’s official website.

Participating banks are allowing applicants to apply for the scheme via SMS or net banking. The application form as well as the Aadhar card must be submitted by the applicant.

Steps to register in the scheme by SMS are as follows:

  1. An activation SMS will be sent to the applicant.
  2. The applicant must reply to the SMS with the text ‘PMSBY Y’.
  3. After sending that SMS, an acknowledgement message will be sent to the applicant.
  4. The request will be processed by the Bank using the information in the savings account.

Steps to register in the scheme using Net Banking are as follows:

  • Go to your internet banking account and log in.
  • Select Insurance from the dropdown menu.
  • Select an account that will be utilised to pay the premium.
  • Verify and confirm all the details.
  • Save the acknowledgement to your computer for future use.

Features of the PM Suraksha Bima Yojana

The scheme has specifically been designed to offer financial aid and assistance to those in the lower-income group so that they have a chance to insure themselves against unfortunate events in life.

Here are some of the features that the PMSBY offers:

  1. The PMSBY offers a low-priced policy that can be purchased for just ₹12. You get accident insurance for this price, without having to spend a lot as compared to other policies available. 
  2. In case of the unfortunate death of the policyholder, the money is given to the nominee. This is so done to maintain the welfare of the family. 
  3. Auto-debit is a fine feature which this scheme offers. So forget having to go to your bank to renew your policy. This would be an automated process, and therefore, one less thing to worry about; one less chore to take care of. 
  4. With the PMSBY, you have the choice to choose a long-term policy or stick with a short term policy. You can even opt for yearly renewability. 
  5. Super easy exit and re-entry, in case you aren’t so sure about your finances. This offers flexibility to those who do not always have a steady source of income and leads to their finances dwindling regularly. 
  6. It saves up on tax. Deductions according to section 80C and Sum insured of ₹1 lakh are non-taxable as per section 10 (10D) of the Income Tax act. 

Eligibility criteria for the PM Suraksha Bima Yojana

In order to benefit from the features of the PMSBY, there are certain eligibility criteria to meet. Here there go, as follows:

  1. The minimum age needed to be a part of this scheme is 18 years
  2. The maximum age limit prescribed by the PMSBY is 70 years.
  3. The potential policyholder should have active savings account with a government bank
  4. The applicant’s savings bank account should be integrated with the person’s Aadhar card
  5. The applicant would have to make a minimum premium payment of ₹12.

What Is Covered In The Pradhan Mantri Suraksha Bima Yojana?

For accidental death and permanent disability, the risk cover is Rs. 2 lakh, and for permanent partial disability, it is Rs. 1 lakh.

Permanent disability is defined as the loss of both eyes or the use of both or one hand or foot for an indefinite period of time.

Total and irreversible loss of vision or use of a hand or foot is classified as permanent partial impairment.

Cause of disability/deathCoverage
AccidentsYes
Natural CalamitiesYes
SuicideNo
MurderYes

Process for raising a claim?

In the event of an unfortunate incident such as an accident, drowning, or other similar occurrences, the police must be notified. In all other circumstances, the hospital record must be available to prove the event.

The claim can be filed by the nominee/appointee mentioned on the enrolment form, or by the legal heirs if there is no nominee. The individual’s disability claim will be credited to his or her bank account. It will be credited to the nominee’s/legal heir’s bank account in the event of death.

Download the claim form from here.

Can The Scheme Be Terminated?

Any of the following occurrences will result in the Scheme’s termination:

  1. The person reaches the age of 70.
  2. The inability to keep insurance alive due to the closure of a bank account or a lack of sufficient balance.
  3. If the insurance firm receives the premium mistakenly from numerous bank accounts, the insurance cover will be limited to one account and the premium will be forfeited.

In conclusion

The PMSBY is eventually a sure-fire way to ensure your future and make sure that any harm coming your way will not have a financial consequence thereafter. Life is unpredictable; and hence with this scheme, you get a chance to secure the future of your family members.