Pradhan Mantri Suraksha Bima Yojana (PMSBY) is an accident insurance scheme launched by the Government of India. The scheme aims to bring the uninsured population under insurance cover.
This scheme is available at a highly affordable premium of Rs.12/- per year. The scheme can be chosen by individuals who fall under the 18-70 years age group and hold a savings bank account. The scheme can be renewed annually.
PMSBY Scheme Details and Features
- This is a low-priced policy especially for weaker sections of the society and can be purchased for Rs. 12.
- Money is given to the nominee in case of an insurer’s death.
- The auto-debit option of premium from the bank account is available.
- Option to choose either a long-term policy or yearly renewability.
- Easy exit and re-entry rules
- It can also help in saving tax.
Coverage Under Pradhan Mantri Suraksha Bima Yojana
- Any accident leading to the policyholder’s death – Rs. 2 lakhs will be given to the nominee
- In the case of Permanent total disability – Rs. 2 lakhs to the insurer
- In the case of Permanent partial disability – Rs. 1 lakh to the insurer
Non – Coverage under Pradhan Mantri Suraksha Bima Yojana
As mentioned earlier, the PMSBY is an accident and disability insurance policy and it can be claimed in the case of an insurer’s death and disability. However, there are also certain restrictions related to the cause of death and the nature of the disability. Death by suicide will not be covered under this scheme and non-permanent disabilities (partial disability without irrecoverable loss) will not be eligible for a claim unless specified otherwise.
Where can you get the scheme from?
The scheme is managed by Public Sector General Insurance Companies (PSGICs) and other general Indian insurance companies in collaboration with the participating banks. The banks are free to rope in any general insurance company for implementing the scheme for their subscribers.
To enroll for this scheme, you can download the form from http://www.jansuraksha.gov.in/Forms-PMSBY.aspx, and submit it to your banker. Some banks have also initiated an SMS-based enrolment process and through net banking too.
List of Participating Banks in PMSBY
Below-given is the list of banks that are a part of the PMSBY.
- Allahabad Bank
- Axis Bank
- Bank of India
- Bank of Maharashtra
- Bharatiya Mahila Bank
- Canara Bank
- Central Bank
- Corporation Bank
- Dena Bank
- Federal Bank
- HDFC Bank
- ICICI Bank
- IDBI Bank
- IndusInd Bank
- Kerala Gramin Bank
- Kotak Bank
- Oriental Bank of Commerce
- Punjab and Sind Bank
- Punjab National Bank
- South Indian Bank
- State Bank of Hyderabad
- State Bank of India
- State Bank of Travancore
- Syndicate Bank
- UCO Bank
- Union Bank of India
- United Bank of India
- Vijaya Bank
Enrollment Process for Pradhan Mantri Suraksha Bima Yojana
You can register for the PMSBY by contacting an affiliated bank or an insurance company as mentioned above. The Pradhan Mantri Suraksha Bima Yojana form or the PMSBY form can also be downloaded from the government’s Jan Suraksha website where it is available in multiple languages.
The registration process can be initiated either through the respective bank’s internet banking facility or simply by sending an SMS on the onboarding organization’s toll-free number.
Activating through SMS
- Step 1 – Receive the activation SMS.
- Step 2 – Reply to the activation SMS by typing ‘PMSBY Y’.
- Step 3 – You will receive a message acknowledging the receipt.
- Step 4 – The respective bank will manage the processing information from the back-end of the savings account.
Activating through the internet banking facility (PMSBY Online Apply).
- Step 1 – Login to the internet banking account of the respective bank.
- Step 2 – Click on the insurance.
- Step 3 – Identify the account which is to be used for paying the premium amount.
- Step 4 – Check all the details and confirm.
- Step 5 – Download the confirmation receipt and note the stated reference number.
PM Suraksha Bima Yojana Eligibility
- People under the age group of 18 – 70 years are eligible to apply.
- The premium of Rs. 12/- per annum will be deducted from the account holder’s savings account through the auto-debit facility.
- Individuals who wish to exit the scheme at any point can rejoin the scheme in future years by paying the annual premium, subject to conditions.
Documents Required to Enroll for PMSBY Scheme
To be a part of the PMSBY, you will need the following documents:
Form – Duly filled PMSBY application form containing details such as name, contact details, Aadhar number, and details of the selected nominee have to be submitted. This form is available in several regional languages apart from English and Hindi for ease of people
belonging to all the sections of the society. For example, the form is also available in Marathi, Oriya, Tamil, etc.
Aadhar Card – In case the applicant’s Aadhar card details are not linked to the mentioned savings bank account, he/she will have to submit a copy of the Aadhar card. The same needs to be accompanied with the application form.
Termination Conditions of the Scheme
The accidental coverage will be discontinued and no benefits will be paid if any of the following conditions are met:
- When the subscriber reaches the age of 70.
- If the savings bank account is closed due to a failure to maintain the minimum balance required to keep the insurance in force.
- If the subscriber is protected by more than one account, the insurance coverage will be limited to one account, and any additional premium paid will be forfeited.
- If an insurance policy is cancelled owing to technical issues or a lack of funds, it can be reactivated once the premium is paid in full. The risk cover will be suspended for that period, and the risk cover will be resumed at the sole discretion of the insurance carrier.
- When the auto-debit option is selected, participating banks must deduct the premium in the month, and that amount must be sent to the insurance company in the same month.
The Process to Claim PMSBY
The following is the method for claiming PMSBY benefits:
- The insured or the nominee (in the event of death) must immediately notify the bank of the accident’s occurrence.
- Claim forms can be received from the bank, specified insurance providers, or via the website. The form must be filled out completely.
- The completed claim form must be presented to the bank branch within 30 days of the accident’s occurrence.
- The claim form must be accompanied by the original FIR, post mortem report, death certificate, or disability certificate issued by a Civil Surgeon. A discharge certificate should be included as well.
- The bank will check the account information and then transfer the case to the insurance company within 30 days of the claim being submitted.
- The insurer will next validate that the insured is on the master policy’s list of insured persons.
- The claim will be processed within 30 days of obtaining the bank’s papers.
- The admissible claim will then be credited to the account of the nominee or insured.
- If the insured has not designated a nominee, the death claim will be paid to the insured’s lawful heir. The succession certificate must be produced by the legitimate heir.
- The bank is given a maximum of 30 days to complete the claim procedure.
Pradhan Mantri Suraksha Bima Yojana Benefits
- A Risk coverage of Rs. 2 Lakhs is provided for accidental death and permanent total disability.
- A Risk coverage of Rs. 1 Lakh is provided for permanent partial disability.
- To ensure a hassle-free claim settlement experience for the claimants, a very simple and subscriber friendly administration & claim settlement process has been implemented
- The PMSBY scheme is solely focused on providing insurance policies to the weaker sections of the society, ensuring their family’s financial security.
- Claim settlement will be made to the bank account of the insured or the nominee in case of death of the account holder.
- There is a web-based system that is in the process of being established to keep the claimants informed about the progress and status of the claim, until the settlement.
PMSBY – FAQs
Q1. Will I be able to profit from this scheme if I already have another insurance plan?
Yes, the scheme’s benefits will be added to any existing accidental insurance coverage.
Q2. What happens if I have inadequate funds in my savings account and it has been closed?
Your accident cover assurance will be cancelled if you have an inadequate amount in your savings account and it has been closed, or if you do not have sufficient balance to keep the policy in effect.
Q3. Can hospitalisation costs be reimbursed under this plan?
No, hospitalisation expenditures incurred as a result of an accident that ends in death or disability are not reimbursed.
Q4. Should the FIR be obtained in order to receive benefits?
If you are seeking benefits under PMSBY, you must get the FIR.
Q5. Will the insured be compensated if he has a partial handicap that is irreversible?
If the disability is recovered, no benefit will be provided to the insured.