Pradhan Mantri Suraksha Bima Yojana is an insurance scheme launched by Prime Minister Narendra Modi in May 2015. This scheme aims to provide monetary benefits to people if they were ever to get into an accident. Read on to get complete coverage on this insurance scheme.
Table of Contents
What is Pradhan Mantri Suraksha Bima Yojana?
Pradhan Mantri Suraksha Bima Yojana is an insurance scheme. According to this scheme, if one pays a yearly premium of Rs 12, then they are eligible for up to Rs 2 lakh accidental insurance. Thus, the premium payment comes down to Re 1 per month.
What are the benefits of Pradhan Mantri Suraksha Bima Yojana?
Pradhan Mantri Suraksha Bima Yojana provides the following benefits:
- If the insured person dies in an accident, then his family receives Rs 2 lakh as insurance.
- If the insured person suffers a loss or disablement of both eyes, both hands or both legs in an accident; then he receives and insurance of Rs 2 lakh.
- Or if the insured person suffers a loss or disablement of either eye, hand or leg in an accident; then he receives and insurance of Rs 1 lakh.
Eligibility for joining Pradhan Mantri Suraksha Bima Yojana
Anyone who concurs the below conditions is eligible to join this scheme:
- Any person between the age of 18-70 years.
- The person must have an active savings bank account. If he has multiple bank accounts, then he can use any one of them to enrol in this scheme.
- The scheme benefits individuals for up to 70 years of age. If a person suffers disablement or death until they are 70 years of age, then they are covered under this scheme.
What is the premium payment mode for Pradhan Mantri Suraksha Bima Yojana?
The insured person has to enable auto-debit from his bank account. This means that the amount will automatically transfer from your bank account to the insurance company, without any further approval from you. This is the only mode of payment currently available. You can always opt-out of this auto-debit scheme in the future by submitting an application in your bank.
What are the exclusions under PMSBY?
The insured person is not liable for an insurance claim under the following situations:
- When the cause of death is suicide.
- If the accident occurred under the intoxication of alcohol, drugs, etc.
- If the injury was sustained in the midst of a criminal case.
What is the coverage period for Pradhan Mantri Suraksha Bima Yojana?
The coverage period for PMSBY extends from June 1st to May 31st. If the insured person suffers an accident, injury or death during this coverage period then he is liable to claim the insurance money. Even if you join the scheme in the middle of the coverage period, you still need to pay the full premium amount of Rs 12. No deductions will be available in the premium amount in such cases.
Who will offer the PMSBY?
Various insurance agencies will offer this scheme via multiple bank outlets. The main protagonist being LIC and its subsidiaries. More or less, all the banks in the country will offer you this scheme.
How to enrol in Pradhan Mantri Suraksha Bima Yojana?
- One can enrol into this scheme by filling out an offline form at their bank. It is a single-page form which is available at the banks itself. For making your task quite easier, you can also download the form the internet itself. You need to fill-up the form and submit it to the bank within the stipulated period of time. The standard format of the offline form is given below. If you want, you can also save this particular image and print it out for filling up and submitting to the bank.
- The second option for enrolling in PMDBY is with the help of internet banking. One can carry out all the processes online via their net banking website. In this case, it is necessary to link your bank account with the same from where the premium amount will be auto-debited.
- The last option is via the HDFC SMS service. HDFC bank has provided customers with this particular opportunity to enrol by SMS. You can go to the online HDFC portal and check out the process which will help you out.
In all the above-given options, you need to submit your Aadhaar details for enrolment purpose. Aadhaar is the only document proof mandatory for enrolment.
What is the claim process of Pradhan Mantri Suraksha Bima Yojana?
Documents required for insurance claim
The following documents need to be submitted when one wants to claim the insurance money under PMSBY:
- A duly signed PMSBY claim form which you can receive from the bank.
- An FIR and death certificate if the insured person has passed away in the accident.
- A disablement certificate from a government hospital if the insured person has suffered severe injuries.
- Additionally, you also have to submit a postmortem report in the case of death.
- For disablement, you have to submit the FIR of the accident.
- In both death and disablement cases, you also have to submit a cancelled cheque of the bank of the nominee, where the insurance money will be transferred.
Steps for insurance claim
- The person under the insurance or the nominee (in case of death of the insured person) needs to reach out to the bank branch where the particular account is held.
- You need to submit a complete PMSBY claim form such as the one given below. This PMSBY claim form can be taken from the branch of the bank itself and the rest follows.
- The claim application has to be raised within 30 days from the date of occurrence of the accident either by candidate or nominee. Else the person will no longer be eligible for this insurance claim.
- The bank officer will examine the nomination, account details, and all the auto-debit particulars associated with the same. After he clarifies the form, he will forward the same to the required insurance agency or company.
- The insurance company will, in turn, verify all the documents.
- After all the verifications are complete, your claim will be processed within 30 days. It will be processed within 30 days of the receipt from the bank into consideration along with the insurance company.
- The required or notable amount of the claim will be remitted to the account of the nominee or the insured person.
How successful is Pradhan Mantri Suraksha Bima Yojana?
This particular scheme is said to be highly successful as multitudes of people have enrolled for it. Until April 2018, 13.48 crore people were enrolled in PMSBY. Glancing at the number, we can understand how successful this particular scheme is. But, if you think it in detail, we can say that only 10-12% of the country’s population has enrolled in the same. Therefore, we can say that there is still scope for 80-85% of the Indian population to still be a part of it.
Furthermore, over 16000 claims have been made and settled under this scheme. This might help in understanding how effective this scheme is. In all the claim settlements, a total amount of Rs 328 crore has been settled as per government and the insurance companies which are there with this particular scheme.
Scope of PMSBY
The Pradhan Mantri Suraksha Bima Yojana aims to provide social security to a vast majority of the population. The mass of the country does not have any insurance cover. Hence, this scheme encourages an insurance cover as well. Furthermore, for the multiple Jan Dhan accounts which were opened for the lower strata of the society, this scheme enables auto-debit which encourages rolling of money in all the accounts. Thus, all bank accounts remain active and do not risk getting dormant.
Video summary
Learn about more such government insurance schemes on LLA blog.
Join the LLA telegram group for frequent updates and documents.
Download the telegram group and then search ‘Labour Law Advisor’ or follow the link – t.me/JoinLLA.
It’s FREE!
