Pradhan Mantri Suraksha Bima Yojana (PMSBY), is one of the three Social Security Schemes to create universal social system for the citizens. The other two are Atal Pension Yojana and Pradhan Mantri Jeevan Jyoti Bima Yojana. The scheme has been launched to ensure risk coverage in case of accidental death, full or partial disability. The insured amount to be provided for accidental death and full disability is Rs. 2 lakh and it is Rs. 1 lakh for partial disability. It carries annual premium of Rs. 12 only, which can be directly auto-debited by the bank from the subscriber’s account. Since, it is the only mode of paying the premium and hence establishes a linkage between the beneficiary and the bank.
|Highlights of the Pradhan Mantri Suraksha Bima Yojana (PMSBY)
Pradhan Mantri Suraksha Bima Yojana is a General Insurance Scheme that was unveiled by the Finance Minister in his budget speech 2015-16 to promote insurance penetration in India.
Furthermore, customer can not be insured under Pradhan Mantri Suraksha Bima Yojana under any other Savings Bank Account. If it is found at any stage that he/she has been insured under any other Savings Bank Account his/her premium shall automatically stand forfeited and consequentially he/she will not be entitled to any claims in future under the scheme. The cases of intentional self injury, suicide or attempted suicide whilst under the influence of intoxication liquor or drugs, any loss arising from an act made in breach of law with or without criminal intent will not be eligible for the benefits under the scheme and are totally excluded from the ambit of the same.There is simple procedure to avail the benefits of the scheme. In order to opt for the scheme every year a person is required to submit a simple form to the bank by 1st June. There is also option available for the person who wishes to take advantage of the scheme on a long term basis and in that case his account can auto debit his account every year. People falling between the age of 18 and 70 years, who hold an Aadhaar linked bank account are fully eligible for the scheme. The insurance cover shall commence from the 1st of the month, subsequent to the date of enrollment in the scheme. Customer can opt to pay full annual premium even if he/she joins the Scheme after the commencement of the Group Policy. It may be noted here that the membership in the scheme will remain in force as long as all premium due are paid until attaining age of 70 years as on Annual Renewal Date.
The scheme has been offered to all Public Sector General Insurance Companies and other willing insurers who are ready to tie up with banks for this purpose. It has the provision for Government contribution, by which various Ministries can co-contribute premium for beneficiaries of different categories from their budget or from the Public Welfare Fund, created in the budget 2015-16, out of unclaimed money.
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