Pradhan Mantri Suraksha Bima Yojana

Pradhan Mantri Suraksha Bima Yojana

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Accidents take place frequently on the Indian roads. The middle class and the rich can opt for accidental insurance but for the poor paying the high premium can be impossible. The government has realized this problem and has announced the social security scheme Pradhan Mantri Suraksha Bima Yojana.

Overview of Pradhan Mantri Suraksha Bima Yojana (PMSBY)

The scheme will provide compensation to the deceased’s family in the event of an untoward incident. As the premium is low, the poor can afford it. This accidental insurance cover was announced in Budget 2015. It was formally launched by the Prime Minister on 9th of May in Kolkata. Both permanent and partial disabilities are covered by the scheme.

Features of Pradhan Mantri Suraksha Bima Yojana (PMSBY)

  • Who is eligible? Individuals between the age group 18 to 70 years qualify for the scheme.
  • How much premium do I have to pay? Excluding the service tax, the annual premium of the scheme is Rs.12.
  • How do I pay the premium? To add to the convenience, the health insurance premium amount is deducted from the savings account of an individual who holds the scheme through the “auto-debit” facility.
  • How much is sum assured? A lump sum amount of Rs. 2 lakhs is paid to the nominee, in case the subscriber loses his life in an accident. The same amount is paid out in case(s) of full disablement.
  • When is sum assured paid out? If the scheme holder meets with an accident suddenly or suffers a permanent partial disablement, then a sum of Rs.1 lakh is paid. Full disability is defined as the loss of sight in both the eyes, loss of use of both the hands/feet, whereas partial disability is defined as the loss of use of one of the hands or feet, loss of sight in one of the eyes.

Benefits of Pradhan Mantri Suraksha Bima Yojana

Sr. No.

Benefit

Sum Assured*

1

Death of the policyholder

Rs. 2 lakhs

2

Total permanent loss of sight in both the eyes, loss of use of both the hands, loss of use of both feet, or loss of sight in one eye and loss of use of one hand or loss of use of one foot

Rs. 2 lakhs

3

Total permanent loss of sight in one of the eyes or loss of use of one hand or one foot

Rs. 1 lakh

*The total amount that can be claimed as the benefit cannot be more than Rs. 2 lakhs in any case.

 

List of banks participating in Pradhan Mantri Suraksha Bima Yojana scheme:

Public Sector Bank

Private Sector Bank

Allahabad Bank

Bank of India

Bank of Maharashtra

Bharatiya Mahila Bank

Canara Bank

Central Bank

Corporation Bank

Dena Bank

Federal Bank

IDBI Bank

Kerala Gramin Bank

Oriental Bank of Commerce

Punjab and Sind Bank

Punjab National 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

Axis Bank

HDFC Bank

ICICI Bank

IndusInd Bank

Kotak Bank

South Indian Bank

 

Note: The bank through which you purchase the policy (scheme or yojana) will be the master policyholder on your behalf. There will be a simplified and customer-friendly administration, and claim settlement process finalized by the master policyholder for you, which will work in consultation the particular insurance company.

List of insurance companies participating in Pradhan Mantri Suraksha Bima Yojana:

Public Sector Insurance Company

Private Sector Insurance Company

Public-private Sector Insurance Company

New India Assurance

Reliance General Insurance

Universal Sompo General Insurance

United India Insurance

ICICI Lombard General Insurance

 

National Insurance Company

Cholamandalam MS General Insurance

 

 

As on 2nd February 2016, 124 million Indians have already enrolled for the scheme. Financial planners are of the opinion that this scheme is a good option for individuals without a medical cover. As per the scheme:

Subscribers will have to renew the cover every year. If they want to avoid the hassle of renewing it every year, they can give an instruction to the bank for auto-debit. Any individual who has a bank account and an Aadhar number linked to the bank account can join the scheme by submitting a form to the bank. If the Aadhar card is not linked to the bank account, a copy of the Aadhar Card must be attached with the application form. In case an individual who wants to join the scheme has more than one account, he is eligible to join the scheme only through a single bank account.

When you decide to submit the application form you will have to fill in the necessary details which include name, contact information, Aadhar number and nominee details. The application form is available in several regional languages such as Bengali, Marathi, Oriya, Hindi, Gujarati, Telugu, and Tamil.

Claim process of Pradhan Mantri Suraksha Bima Yojana:

After the occurrence of an accident, it is necessary to inform the bank immediately. The claim form can be obtained from the bank or the insurance company. Within 30 days of the occurrence of the accident, the claim form must be submitted. It is important to support the claim form with the FIR, death certificate, and report of post-mortem, disability certificate (if any) and the discharge certificate. The details will be verified by the bank and the case will be forwarded to the insurance company within 30 days of submission of the claim. Finally, the claim will be paid out to the nominee. In case of absence of the nominee, the claim will be remitted to the legal heir.

The primary aim of this scheme is to increase insurance penetration in India and offer financial security to the poor.

Termination of Pradhan Mantri Suraksha Yojana:

Any of the below-mentioned events result in termination of the policy and no further benefits are offered to you:

  • The policy is subject to termination as long as you turn 70 (age as on nearest birthday)
  • The policy shall terminate in the event of closure of the savings account with the participating bank or failure to keeping sufficient balance for policy to remain in force
  • The policy shall terminate if the policyholder is covered by multiple accounts and the premiums are debited by insurance companies inadvertently, resulting in insurance cover limited to one policy only and the premium forfeited.
  • The policy shall cease in the event of insufficient balance on the due date, due to some technical error, or because of some administrative issue. To reinstate, the policyholder needs to pay the full annual premium with the cause of failure laid down. However, there will be no coverage applicable during that period and reinstatement will be at the sole discretion of the particular insurance company.
  • The participating bank auto-debits the premium in the month the option was given (in May, generally) and automatically pay the due amount to the insurance company in the same month.

Premium Appropriation of Pradhan Mantri Suraksha Bima Yojana

  1. The annual premium per member is Rs. 10 payable to the insurance company.
  2. Per member expense reimbursement to Micro/Agent/BC/Corporate is Rs. 1 annually.
  3. Per member administrative expense reimbursement to participating bank is Rs. 1 annually.

Real-time enrollment of Pradhan Mantri Suraksha Bima Yojana

Over 124 million (i.e. 124, 738,419) people in India have already enrolled for this insurance scheme as on February 2, 2016.

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