Pradhan Mantri Suraksha Bima Yojana (PMSBY)- The Complete Guide for 2024

Posted by  Fintra , updated 2023-12-06

Pradhan Mantri Suraksha Bima Yojana (PMSBY), a social security scheme in India that provides one-year accidental death and disability cover and can be renewed yearly. The Government announced PMSBY as one of the three social security schemes in the 2015 budget. The two other schemes are Atal Pension Yojana (APY) and Pradhan Mantri Jeevan Jyoti Bima Yojana (PMJJBY).

Basically, PMSBY is an accidental insurance scheme providing accidental death and disability coverage for one year and it has an annual renewal facility. The minimum premium rate is Rs. 12 per annum, and due to this reason, the policy is known to be the most beneficial for the poor and low-income section of society. This scheme gives life coverage of Rs. 2 lakh for the accidental demise and permanent total disability along with Rs. 1 lakh for permanent partial disability.

Those who are between the ages of 18-70 years and are having a savings bank account can subscribe to this scheme. Do note that if you are having multiple saving bank accounts, you can only subscribe to the scheme by using one of your saving bank accounts. To enhance your knowledge about Pradhan Mantri Suraksha Bima Yojana (PMSBY), in this blog Fintra will briefly discuss the various aspects of the policy by highlighting the following topics:

1. What is Covered Under PMSBY Policy and How Much It Is?
2. Inclusion and Exclusion in Pradhan Mantri Suraksha Bima Yojana (PMSBY)?
3. Features of Pradhan Mantri Suraksha Bima Yojana (PMSBY)
4. What Is The Pradhan Mantri Suraksha Bima Yojana (PMSBY) Period Of Enrolment?
5. How To Enrol For The Pradhan Mantri Suraksha Bima Yojana (PMSBY) Scheme?
6. Eligibility
7. Claim Process of Pradhan Mantri Suraksha Bima Yojana (PMSBY)
8. Termination of Pradhan Mantri Suraksha Bima Yojana (PMSBY)
9. List of Banks Offering Pradhan Mantri Suraksha Bima Yojana (PMSBY) 

What is Covered Under PMSBY Policy and How Much It Is?

Under PMSBY, the risk coverage available is Rs 2 lakh for accidental death and permanent total disability, and Rs 1 lakh only for permanent partial disability. The Government has defined permanent disability as total and irrecoverable loss of both eyes or loss of use of both or one hand or foot. On the other hand, permanent partial disability is defined as the total and irrecoverable loss of eyesight or loss of a hand or foot. The scheme can be availed in addition to any other insurance a person has. Moreover, since this is a pure life insurance plan, it doesn’t have any provision for reimbursing of hospitalization expenses following accidents as it is not a Mediclaim policy.

Inclusion and Exclusion in Pradhan Mantri Suraksha Bima Yojana (PMSBY)?

As defined under PMSBY, any accidents, death, and/or disability caused due to natural calamities are covered by the policy. However, the plan won't provide coverage against suicide and any deaths due to murder are will be covered under the policy. PMSBY also doesn't give coverage if there's an irrecoverable loss of eyesight or loss of one hand or foot.

Features of Pradhan Mantri Suraksha Bima Yojana (PMSBY)

1. How much premium to pay? Excluding the service tax, the scheme's annual premium is just Rs. 12.
2. How do to pay the premium? For your convenience, the health insurance premium amount gets deducted from your savings account that has the “auto-debit” facility enabled. Every year the account will be auto-debited by the bank at the start of the cover i.e on 1^st If it is debited after 1^st June, then the cover will start from the date of the auto-debit of the premium by the bank. Getting enrolled in this scheme from more than one bank would not make one eligible for a cover from both banks. You can avail of it from only one bank and the premium paid to other banks will be kept by the bank itself.
3. How much is the sum assured? A lump sum amount of Rs. 2 lakhs will be paid to the nominee if the subscriber has lost their life due to an accident. Moreover, the same amount will be paid out if full disablement occurs.
4. When does the sum assured get paid out? When the subscriber meets with an accident or suffers from permanent partial disablement, a sum of Rs. 1 lakh will be given to the individual. Do note that under this scheme full disability is defined as the loss of sight in both the eyes, loss of both the hands/feet, whereas partial disability is defined as the loss of sight in one of the eyes and/or loss of use of one of the hands or feet.

What Is The Pradhan Mantri Suraksha Bima Yojana (PMSBY) Period Of Enrolment?

The cover is for one year, starting June 1 to May 31 of the next year. The option to join/pay by auto-debit must be given by subscribers as written consent to the bank by May 31st of every year. Those who want to continue beyond the 1st year must give their written consent to the bank for auto-debit before May 31st for each successive year.

How To Enrol For The Pradhan Mantri Suraksha Bima Yojana (PMSBY) Scheme?

The scheme can be availed by visiting Public Sector General Insurance Companies and other Insurance Companies, in collaboration with many banks. The banks are free to choose a different company for implementing the scheme for their subscribers. You can visit the bank and then fill in the form or you can download the form online and then submit it to your bank. You need to submit the form along with the Aadhar card. Some banks have also initiated an SMS-based enrolment facility for the scheme. You can also get enrolled in this scheme using internet banking. 

Following are the steps to enrol through SMS:

• An activation SMS will be received on your mobile.
• Respond to the SMS as ‘PMSBY Y’.
• You will then get the acknowledgement message.
• The Bank will finally process the request with the information available in your savings account.

Following are the steps to enrol through Net Banking:

• Log in to your internet banking account.
• Click on the Insurance tab.
• Select the account you desire to use for paying the premium.
• Verify the details and confirm.
• Download the acknowledgement and save it for future reference.

Eligibility

Indians who have a bank account and fall in the age group of 18-70 years are eligible to join the PMSBY. If the person has multiple bank accounts, then they may join the scheme using only one of the accounts. If the individual has a joint account, then all the members can avail of the scheme separately. Even the NRI’s are eligible to opt for the scheme but the claim benefit will be paid only in Indian Currency to them.

Claim Process of Pradhan Mantri Suraksha Bima Yojana (PMSBY)

When any occurrence of an accident happens, it is vital to inform the bank promptly. You can obtain the claim form from the bank or the insurance company. The claim form must be submitted within 30 days of the occurrence of the accident. Moreover, along with the claim form, it's vital to also attach the FIR, death certificate, and the report of post-mortem, disability certificate (if any), and the discharge certificate. The banks will verify the details and the case will then be forwarded to the insurance company within 30 days of submission of the claim. Finally, the claim will be paid out to the nominee. If the nominee is absent, then the claim will be remitted to the legal heir.

Termination of Pradhan Mantri Suraksha Bima Yojana (PMSBY) 

The Scheme gets terminated in the occurrence of any of the following events:

• When the person turns 70 years old.
• The scheme will be terminated if there's the closure of the savings bank account or if there's insufficiency of balance to keep the policy active.
• If there are multiple bank accounts and the receipt of the premium is inadvertently received by the insurance company, the insurance cover will then get restricted to one account and the premium will get forfeited.

List of Banks Offering Pradhan Mantri Suraksha Bima Yojana (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

Conclusion

In today's time, accidents are frequently taking place on Indian roads. The middle class and the rich can easily opt for accidental insurance but for the poor people, it's impossible to pay such high premiums. Due to these reasons, the government realized this problem and later designed the social security scheme known as Pradhan Mantri Suraksha Bima Yojana.

With all the above mentioned benefits and features that this scheme offers and with its minimum premium rates, Pradhan Mantri Suraksha Bima Yojana (PMSBY) is termed to be one of the best social security schemes. It provides life protection to individuals of lesser means without hurting their savings significantly.