The Government of India initiates different schemes for the welfare of people and society. Several schemes are set to mitigate a number of public issues and help individuals live their lives comfortably. One such scheme that came into play in 2015 is PMSBY Scheme.
+Tax benefit is subject to changes in tax laws. +Standard T&C Apply
++Discount is offered by the insurance company as approved by IRDAI for the product under File & Use guidelines
Read on to know more about PM Suraksha Bima Yojana benefits in detail:
The Pradhan Mantri Suraksha Bima Yojana (PMSBY), is one of the popular social welfare schemes backed by the Government that provides coverage for accidental death, partial disablement, and permanent disability. This plan was introduced to provide insurance on personal accidents to the major risk group such as labourers, truck drivers, and mechanics which includes more drifting/travelling.
The policy is available for Indian citizens between the age of 18 years to 70 years having their active savings account. It provides risk cover of 2 Lacs for complete disability and accidental deaths and 1 Lacs for incomplete disability. The amount of premium for PMSBY is Rupees. 12 per year and it gets auto-deducted from the registered bank account. The coverage is for a term of 1 year i.e., from 1 June to 31 May of the subsequent year. The plan can be renewed yearly.
Here is a list of banks that provide the PMSBY scheme benefits at their branches:
|Axis||Allahabad Bank||Central Bank|
|Bhartiya Mahila||Bank of Maharashtra||Bank Of India|
|Canara Bank||Dena Bank||Kotak Bank|
|HDFC Bank||Federal Bank||ICICI Bank|
|Induslnd Bank||IDBI Bank||State Bank of India|
|OBC Bank||Corporation Bank||Punjab National Bank|
|Punjab and Sind||State Bank of Hyderabad||South Indian Bank|
|State Bank of Travancore||Kerala Gramin Bank||UCO Bank|
|Union Bank of India||Syndicate Bank||United Bank of India and Vijaya Bank|
In order to avail of Pradhan Mantri Suraksha Bima Yojana Benefits, it is important to be aware of the features of the plan. Here’s a quick laydown:
The yearly premium for PMSBY is 12 Rupees. The amount excludes the service tax that is 14 percent.
The policy’s beneficiary will receive the death payout after the unforeseen death of the policyholder in a mishap such as an accident.
Auto-debit facility is available. The amount of premium is deducted automatically from the policyholder’s bank account.
The accidental insurance coverage is renewable annually
Applicants are flexible to choose between a long term policy or a yearly renewable plan
The re-entry and exit measures are easy to understand. The policyholder can sign in or exit the plan anytime in the future.
Get tax savings benefits based on the prevailing laws of the income tax act.
The Pradhan Mantri Suraksha Bima Yojana is financial aid for economically backward families in India. It provides sufficient insurance coverage to the policyholder in case of their disability or death due to an accident. The below table provides an overview of the different benefits of PMSBY scheme:
The scheme offers accidental insurance coverage without spending a lot of amounts
The scheme provides financial assistance to the dependents if the policyholder dies in an accident.
With the option of auto-debit, the policyholder no longer has to worry about the missing premium due dates.
The scheme provides safe processing and continuous coverage
The life assured has the option to either continue or discontinue the scheme at their convenience
The premium amount paid for the scheme can be claimed for tax exemptions under section 80C of the old Income tax act. Moreover, the amount of up to Rs 1 Lakh received by the nominees/beneficiaries is non-taxable u/s 10(10D) of the ITA, 1961.
As discussed the Pradhan Mantri bima yojana benefits in the above section, let’s now discuss the coverage under PMSBYS scheme benefits.
|Criteria||Payment to the Beneficiary/nominee|
|If a policyholder dies because of an accident||Rs. 2 lacs|
|If an unforeseen accident causes total or irreversible loss, loss of both the feet or hands, eyes loss or sight loss in 1 year, and complete loss of a foot or hand||Rs. 2 lacs|
|If an unforeseen accident causes irreversible and complete sight loss of 1 eye and complete loss of one foot or hand||Rs 1 Lac|
|As discussed, the policyholder can avail tax deductions for the premium amount paid u/s 80C|
|The SA received up to 1 Lac is free of taxes u/s 10(10D)|
The eligibility standards for availing the benefits of Pradhan Mantri Suraksha Bima Yojana are:
|Minimum Entry Age||18 years|
|Maximum Entry Age||70 years|
|Primary KYC Document||Aadhar Card|
|Annual Premium||Rs. 12|
|Renewability||Yes, the plan can be renewed annually|
|Applicability of Plan||1 year|
Any person coming under 18 years to 70 years age group having a savings account is eligible for the scheme
The bank account should always be registered with an Aadhar card
If in case Aadhar card is not registered with the savings bank account, then the copy of the document should be submitted with the PMSBY application.
If the policyholder has a savings account i.e., more than 1, then they can join the plan by a single account of bank
In the case of a joint account, all policyholders of the account can join the plan.
If the policyholder is an NRI (Non-Resident Indian) and is eligible, the claim payout will be paid out the life assured/nominee in Rupees.
The PMSBY application is to be filled out to avail of PMSBY Scheme benefits. The details required to provide are:
Details of nominee
PMSBY Application form (in different languages)
One of the important KYC documents that should be submitted with the PMSBY application is a copy of the Aadhar card if it is not registered with your bank account.
Following is the process for claiming PMSBY benefits:
Step 1: The life assured or nominee (in case of the insured’s demise) should immediately inform the bank about the occurrence of an accident.
Claim application forms can be availed from the bank, specified insurers, or through the website. Fill out the form completely.
Step 2: The completed claim application form must be submitted to the bank (online or offline) within 30 days of the accident
Step 3: Along with the claim application form, Original FIR, death certificate, disability certificate issued by a civil surgeon, post mortem report, and discharge certificate is also submitted
Step 4: The bank will then check the information of the account and then transfer the case to the insurer within 30 days of submitting the claim.
Step 5: Then, the insurance company will check that the life assured is on the list of the master policy of insured individuals.
Step 6: The claim will be processed within 30 days of providing the documents to the bank
Step 7: The admissible claim benefit is then credited to the nominee/insured’s bank account
Step 8: If the policyholder has not assigned a nominee, the death claim payout will be paid to the policyholder’s legal heir. The succession certificate must be provided by the legitimate heir.
Step 9: The bank takes 30 days to complete the entire claim process.
Insured’s full address
Name and Address of the bank
Saving account number
Insured’s contact number
Day, date, and time of accident, place, and nature of the accident
Cause of death or injury details
Name and details of the attending physician or the hospital
Date and time when the medical officer can visit the policyholder
The policy does not provide coverage for death due to suicide
Non-permanent disabilities i.e., partial disabilities without irrecoverable loss are not covered