All About Pradhan Mantri Suraksha Bima Yojana

The Indian government has made numerous initiatives to offer the best possible care and protection for its inhabitants. The Indian government has left no stone unturned in displaying concern for its residents, from bringing about developmental and infrastructural changes in the healthcare business to offering social security through different subsidised health insurance programmes.

During the Budget Speech in 2015, the Former Finance Minister of India, Late Mr. Arun Jaitley, announced three social security schemes. All of these programmes were designed to give social security to persons who worked in India’s unorganised sector. Pradhan Mantri Suraksha Bima Yojana (PMSBY) was one of these three programmes.

We hope that this article has shed some light on the PMSBY concept and what it entails, continue reading to know more.

What is PMSBY?

As previously stated, the Pradhan Mantri Suraksha Bima Yojana (PMSBY) is a social security scheme introduced by the Indian government during the 2015 Budget Speech in Parliament. The PMSBY system is a government-backed accident insurance programme that protects people falling between the age of 18 – 70 from accidental death and disability.

This policy is beneficial in preparing an individual for unexpected crises because it provides accident insurance coverage that is up to 2 lakhs at a very low annual premium of only $12.

Key Highlights Of The PMSBY Scheme

The primary features of the PMSBY insurance scheme includes:

• Coverage is for a year and is renewed every year.
• This programme is open to both Indians and non-resident Indians.
• Covers up to 2 lakhs in case of death or total or partial disability as a result of an accident.
• The annual policy will be valid from June 1 to May 31.
• Each member will have to pay a $12 annual fee to receive the benefits under this system.
• The beneficiary’s bank account will be debited annually for a premium of $12.

Inclusions and Exclusions under the PMSBY scheme

Here is what will be covered under the PMSBY insurance scheme:

• The scheme will cover the applicant’s accidental death.
• The scheme will not cover the applicant if he or she commits suicide.
• The scheme will cover the applicant if he or she dies as a result of homicide.
• Permanent total disability will be covered, which includes the loss of both eyes, hands, or feet.
• Permanent partial disability, such as the loss of one or more of one’s eyes, hands, or legs, will be covered as well.
• In the event of accidental death or permanent total disability, compensation of Rs. 2 lakh will be awarded. In the instance of partial disability, a one-lakh compensation will be granted.

Eligibility Criteria For Availing Of The Benefits Of The PMSBY Scheme

Individuals between the ages of 18 and 70 can enroll in the PM Suraksha Bima Yojana to take advantage of the benefits provided by the scheme. These benefits are available to both Indians and NRIs. The claim amount, however, will only be reimbursed in Indian rupees.

The following are the prominent points to keep in mind while determining whether or not someone is eligible for this scheme:

• He/she should have an individual or a joint bank account in his/her name.
• Aadhar number is mandatory for KYC purposes.
• If an individual has multiple bank accounts, her/she can join from only one bank account.
• In the case of a joint account, all account holders can join the scheme from the same bank account.

How to avail the benefits of this scheme?

The PMSBY system would be handled by both public and private sector general insurance providers, such as ICICI Lombard. To become a beneficiary under this scheme, you can apply with any of these insurance firms by SMS or Net Banking.

Simply download the PMSBY form from the government’s website and submit it to a bank or insurance provider with the completed form.

Steps to enroll for PMSBY through SMS

Step 1 – Send a message on the onboarding organisation’s toll-free number

Step 2 – You will receive an activation message

Step 3 – Reply to the activation message with “PMSBY Y”

Step 4 – You will receive an acknowledgement message

Step 5 – The bank will process your request as per the information in your savings account

Steps to enroll for PMSBY through Net Banking

Step 1 – Log in to your net banking account

Step 2 – Click on “Insurance”

Step 3 – Select the bank account to be used for premium payment

Step 4 – Verify the details and click on “Confirm”

Step 5 – Download and save the acknowledgement receipt for future reference

Final Thoughts

The PMSBY scheme’s goal is to provide residents with social security by offering personal accident insurance at a substantially cheaper cost than the market rate. It is a yearly plan that must be renewed every year via auto-debit of the $12 premium cost. When a claim is filed, the policyholder or his or her nominee will get a predetermined sum of 1 lakh or 2 lakhs.