Pradhan Mantri Suraksha Bima Yojana (PMSBY)
Introduction
The scheme is available to people of the age group of 18 to 70years with a bank account to give their consent to join and enable auto-debit on or before 31st May for the coverage period from 1st June to 31st May on an annual basis. It is a prime minister’s safety insurance scheme and government-backed accident insurance scheme in India. It was originally mentioned in the 2015 Budget speech by finance minister late Arun Jaitley in February 2015. It was formally launched by prime minister Narendra Modi on 8th May in Kolkata. The scheme will be a one-year cover personal accident insurance scheme, renewable from year to year, offering protection against death or disability due to accident. It helps to stay prepared in cases of unforeseen emergencies, with unexpected death and impairments towards you and your family.
The PMSBY has certain features and benefits that make the average person keen to invest in it. One can avail of the insurance schemes from the public or private sector banks or L.I.C. One must have operating savings account with a participating bank under the scheme. The premium is under tax benefits. These Suraksha schemes are common among the underprivileged Indians who are involved in the unorganized working sectors. Anyone can apply for the schemes regardless of their income.
Why Does The Scheme Start?
Towards fulfilling Prime Minister Narendra Modi’s vision of making India a fully secured society a target has been set to increase the coverage from 22 crores to 37crore under PMSBY in the next five years which will take us closer to covering the eligible population through these flagship schemes for social security. It intends to provide an affordable insurance scheme for the poor and underprivileged people belonging to the age group of 18 to 70years with a bank account at a premium of Rs. 20 per annum, these social security schemes are dedicated to the welfare of the citizens recognizing the need for securing human life from unforeseen risks/losses and financial uncertainties, as declared by the finance ministry mentioned. In order to ensure that the people from the unorganized section of the country are financially secure. One of the main objectives under the National Mission for Financial Inclusion announced by the honorable Prime Minister on August 15th, 2014, was to expand the coverage of insurance in order to provide the poor and marginalized sections of the society the much-needed financial security through affordable rates.
It is initiating the government’s drive popularly known as from Jan Dhan to Jan Suraksha. Likewise, this social security scheme is to be administered through both public and private sector insurance companies in tie-up with scheduled commercial banks, regional rural banks, and cooperative banks.
List Of Banks/Insurance Companies
1. Bank:-
Allahabad Bank | Kotak Bank |
Axis Bank | Oriental Bank of Commerce |
Bank of India | Punjab National Bank |
Bank of Maharashtra | Punjab and Sind Bank |
Bhartiya Mahila Bank | South Indian Bank |
Canara Bank | State Bank of Hyderabad |
Central Bank | State Bank of India |
Corporation Bank | State Bank of Travancore |
Dena Bank | Syndicate Bank |
Federal Bank | UCO Bank |
HDFC Bank | Union Bank of India |
ICICI Bank | United Bank of India |
IDBI Bank | Vijaya Bank |
IndusInd Bank | Kerala Gramin Bank |
2. Insurance Companies Participating In The Scheme:-
Bajaj Allianz |
Cholamandalam MS |
ICICI Lombard |
National Insurance |
New Delhi Assurance |
Reliance General Insurance |
United India Insurance |
Universal Sompo |
Premium Changes
- Seven years after starting of PMSBY government raised the premium rates for the first time. Following the annual Premium of PMSBY that provides a death coverage of Rs. 2 lakhs to the policy beneficiary in case of the insured’s accidental demise has moved up from Rs. 12 to 20. Because of a high claim pay-out in comparison to the premium collection made the insurance plans unviable, unless the premium is increased. Government-sponsored insurance schemes for the underprivileged all over the world face a particular challenge and it increases the claimed rise due to inflation, Covid but premiums cannot be increased due to affordability constraints. Higher than normal morality rate during the Covid 19 pandemic and high rate of inflation makes the continuation of the insurance plans difficult without increasing the premiums. The premium rates of the schemes have been revised by making it Rs.1.25 per day premium for the scheme. From June 1, 2022, the premium will stand at Rs. 20. In percentage terms the premium will be increased by 67%. The decision has been taken in view of the long-standing adverse claims experience of the schemes. Claims of the scheme have been deposited into the bank accounts of the beneficiaries through the Direct Benefit Transfer (DBT) route. Revised rates would also encourage other private insurers to come on board for the implementation of the scheme.
Features Of The Scheme
One can purchase the policy with a nominal amount of Rs.20.
The scheme beneficiaries will receive the death benefit after the insured’s unfortunate demise in an accident.
The health insurance premium amount is auto-debited from the linked savings bank account.
Applicants can choose between a long-term policy or an annual renewal plan as per convenience.
The exit and re-entry measures are simple to understand.
It offers several tax benefits.
Scheme Benefits
- The health insurance policy offers accidental insurance cover without spending a lot of money. The policy provides financial aid to the dependents if the insured dies in an accident. With the auto-debit option, the insured no longer has to worry about missing the premium due dates. The policy offers secure processing and continuous coverage. The premiums paid towards the plan can be claimed for tax deduction under section 80C of the old income tax regime. Also, the sum of up to 1lakh received by the beneficiaries is non-taxable under section 10(10 D) of the Income Tax Act, 1961. Under Pradhan Mantri Suraksha Bima Yojana a death benefit of Rs. 2lakh is available to the policy beneficiary in case of the insured accidental demise. Coverage of 2lakhs is provided in case of total disability like an irrecoverable or complete loss of both the eyes or loss of use of both the hands and feet. In case of partial disability, a life coverage of Rs. 1 lakh is provided to the insured. The scheme does not offer any Mediclaim, it does not offer any reimbursement of hospitalization expenses caused due to an accident.
How To Get The Benefit?
- To get the benefit the nominee of the PMSBY will have to approach the bank where the subscriber opened the scheme with a savings bank account. If the subscriber is dead the nominee will have to show an accurate death certificate. In other cases, will have to show a discharge certificate and must attach a photocopy of a canceled cheque of the nominee’s bank account or the subscriber to the participating Bank. Then the bank will start the procedure of the insurance claim.
Eligibility
The minimum age requirement is 18 years.
The maximum age requirement is 70 years.
Those having a savings bank account and falling under the age- group of 18 to 70 years are eligible.
The bank account must be linked with the Aadhar Card.
If the bank account is not linked with the Aadhar Card then the Aadhar Card copy must be attached with the application form.
If the individual has more than one savings account, he or she is only eligible to join the scheme through a single account.
The scheme is valid for a year and it can be renewed at the end of the year.
The primary KYC document required is the applicant’s, Aadhar Card.
In the case of joint account holders, all the holders will be allowed to join the scheme.
NRI can join the scheme however in the event of a claim arising the beneficiary nominee will be paid in Indian Currency only.
Enrolment Period
- The enrolment period is starting from June 1st to 31st May of the subsequent year. i.e., a period of one year. The instructions for auto-debit have to be given to the bank by May 31st every year. It is a yearly scheme and hence the individual must provide consent for auto-debit before 31st May.
How To Get Enrolled?
The scheme is offered and administered by the public sector General Insurance Companies and other General Insurance Companies in collaboration with the participating banks.
The individual can register by contacting the affiliated bank or an insurance company or can download the form from the Government website.
https://www.Jansuraksha.gov.in/Forms-PMSBY.aspx.
- Can approach banks for enrolment or can enroll themselves through internet banking or through SMS facility.
Activate Net banking: To activate Net banking one should follow a few steps that are as follows:
- Log in to an internet bank account.
- Click on ‘insurance’.
- Select which account will be used to pay the premium.
- Check the details and confirm.
- Download the policy receipt.
Activate PMSBY SMS facility:
- Visit Bank’s website.
- Click on the PMSBY section.
- Enter your account number and captcha code.
- Click on get one-time password.
- Provide all the requisite details.
- Click on ‘submit’.
Documents Required For Enrolment
Form- submission of the duly filled PMSBY application form should contain details such as name, contact details, Aadhar Card number, and details of the selected nominee.
Aadhar card- In case the applicant’s Aadhar Card details are not linked to the stated savings bank account, the applicant will have to submit a copy of the Aadhar Card. The same will have to be accompanied by the application form.
How To Check Application Status?
Step 1- visit your bank’s website and log in using internet banking.
Step 2- log in using internet banking.
Step 3- visit the appropriate PMSBY section.
Step 4- enter the bank account number.
Step 5- enter the PMSBY application number.
Step 6- click ‘submit’.
Step 7- check ‘status’.
IRDAI Relation With PMSBY
- The Insurance Regulatory and Development Authority of India (IRDAI) has decided to form task forces to suggest steps to sort out issues between insurers and reinsurers. These task forces will have to submit reports in three weeks. The task force for the life insurance sector has seven members and it will be headed by Naveen Tahilyani, MD, and CEO of TATA AIA life insurance. The one for the non-life insurance sector has nine members and will be by Dhargav Dasgupta, MD, and CEO of ICICI Lombard General Insurance. For the non-life insurance sector, the terms of reference force include the applicability of compliance requirements with respect to claims, social and rural sector obligations, support for social insurance schemes, and the scheme PMSBY scheme included in the task force.
Claim Process
The insured or the nominee must immediately inform the bank about the occurrence of the accident. The claim form must be obtained from the bank or designated insurance companies or via the designated website. The completed claim form is to be submitted to the bank branch within 30 days from the day of the occurrence of the accident. The claim form to be submitted with the original FIR, post-mortem report, death certificate, or in case of disability, disability certificate which is issued by a surgeon should be enclosed with the form. The bank will verify the account details and then forward the case to the insurance company within 30 days of the submission of the claim. The insurer will then confirm that the insured is on the list of the insured persons in the master policy.
The claim will be processed within 30 days of receiving the documents from the bank. The admissible claim will be then remitted to the nominee’s or the insured’s account. If the insured has not appointed a nominee, then the death claim will be paid to the legal heir. The legal heir must produce the succession certificate. The maximum time that is allowed for the bank to finish the claim procedure is 30 days.
Documents Required For Claim
Name of the insured.
Full address of the insured.
Name and address of the bank branch.
Saving bank account number.
The contact number of the insured, mobile number, phone number, email address, and Aadhar Card.
Details of the nominee, i.e. name, mobile or phone number, email address, bank account, for electronic transfer, and Aadhar card.
Details of the accident, i.e. the day, date and time of occurrence, place of occurrence, nature of the accident, and cause of death, or the details of the injury.
Name and address of the hospital or the attending doctor along with the contact details.
Time and date of when the medical officer of the company can visit the insured.
Details of the documents that have been submitted.
The nominee or claimant will have to sign the declaration and mention the policy number and claim number along with the date. The authorized bank official will further review the form and sign it and pass it on to the insurance company.
Scheme Coverage Overview
- Under Pradhan Mantri Suraksha Bima Yojana the risk coverage available is Rs. 2lakh for accidental death and permanent total disability and Rs. 1 lakh for permanent partial disability. Permanent total disability is defined as irrecoverable loss of both the eyes or loss of the use of hands or feet.
Top 13 Interesting Facts About The Scheme
As per the latest PIB release about 41.50% of enrolment under this scheme belongs to women and 61.29 % of claim beneficiaries are women.
Pradhan Mantri Suraksha Bima Yojana is one of the security schemes under the government of India and is an important topic for the IAS exam.
Any suicidal death is not covered under the Pradhan Mantri Suraksha Bima Yojana scheme. The family members will not be provided with the benefits in case of suicidal death.
In non-permanent disability means that the disability is partial without any irrecoverable loss not covered in the scheme.
If someone does not have a minimum balance in their savings account to pay the premium the scheme will be terminated.
If someone has multiple accounts, the insurance Premium amount will be auto-debited from one account, and the premium deducted from another account or we can say the extra premium will be forfeited.
If the insurance cover is terminated due to technical reasons or insufficient balance it can be reinstated after the premium is paid in full.
People no longer have to worry about the treatment costs and can avail healthcare services when needed.
As per the Ministry of Road Transport and Highways, India ranks first in the number of road accident deaths across the 199 countries and accounts for almost 11% of the accident-related deaths in the world, so this scheme is very necessary for India.
Murder is not covered under Pradhan Mantri Suraksha Bima Yojana.
The scheme will be terminated once the policyholder attains the age of 70.
If the policyholder decides to close their savings account with the participating Bank or is unable to keep the sufficient balance to pay the premium then the scheme can be terminated.
Pradhan Mantri Suraksha Bima Yojana has its own customer care number which is 1800-180-1111/1800-110-001. It is a national wide toll-free number.
