Everything About Pradhan Mantri Suraksha Bima Yojana Policy

The Indian government announces the Pradhan Mantri Suraksha Bima Yojana Scheme (PMSBY) in 2015 to provide accidental disability or death insurance to the one who suffer. This policy comes under the security scheme.

Individuals between the age limit of 18 years to 70 years who have an account in any respective bank and provide their approval to join/activate auto-withdraw on or before May 31 for the period of 1 June to May 31 on a yearly renewal basis are eligible for the Pradhan Mantri Suraksha Bima Yojana scheme. The main document that is required for this scheme is your Aadhar Card.

The risk insurance coverage provided by the plan is Rs. 2 lakhs for unintended demise, Rs. 1 lakh for temporary disability, and Rs. 2 lakhs for complete disability. The Rs. 20 yearly premium will reduced from the bank account of the holder in one lump sum using the “auto-debit” option. Any general insurance service-providing firm prepared to provide the product on a comparable basis, including public sector general insurance companies, is offering the program.

Key Features of the PMSBY Scheme

The major features and highlights of the PMSBY Policy are given below:

  • This insurance provides coverage for accidental death and any type of long-term or short-term disability.
  • The annual premium that should be paid is Rs 12 excluding the service tax of 14%
  • Up to Rs 2 lakhs will be payable to the subscriber’s nominee if the nominee gets expired in an accident or get permanent disability.
  • The customer has the option of renewing the plan annually or using the long-term option.
  • It offers the flexibility to join at any time in the future and to leave the program at any time.
  • The sum is automatically taken out of the subscriber’s bank account.

Details of the policy

Period of Enrolment: The accidental disability/death coverage period runs from June 1st through 31st May of the following year. During this time, subscribers may sign up for the plan at any moment and authorize the automatic deduction of the monthly fee. To enlist, the subscriber must also allow the automatic withdrawal of the renewal premium. Each year, the last week of May, the renewal premium is deducted.

Eligibility Criteria

Those who agree to join or allow auto-debit by the aforementioned modalities and who have a Savings Account with one of the partner banks and are between the ages of 18 years (completed) and 70 years will be registered in the program.

Premium: Rs 20 a year for each member is the premium. Each yearly coverage period under the program will have a single instalment of the premium debited from the account holder’s savings account using the “auto debit” feature on or before the first of June. The cover will start when you enlist in the plan for enrolments made on or after 1st June 2016, and it will last for two years.

Termination Condition

Any of the following circumstances will result in the termination of the member’s accident insurance, and no benefits will be paid under them:

  • Upon turning 70 (the age closest to your birthday).
  • Account closure with the Bank or a balance that is insufficient to maintain the insurance.
  • If an insurance firm accidentally receives a premium for a member who is protected by several accounts, the insurance coverage will be limited to just one account, and the money may be lost.
  • The insurance coverage may be resumed upon receipt of the full yearly premium, subject to any conditions that may be established if it is terminated for any technical or administrative reasons, such as an inadequate balance at the time of payment or owing to any technical problems. Risk coverage will be discontinued at this time, and the insurance provider will have the sole authority to resume it.
  • Participating banks will take the premium payment from the account in the same month that the auto debit option is selected, usually in May of each year, and then send the balance owed to the insurance provider during that same month.

Advantages of the Policy

  • Each year, there is a renewal of the insurance for accidental death.
  • There is a 12-rupee yearly premium due. The 14% service tax that is not covered in this premium is payable separately.
  • If the insurance holder is dead in an accident or suffers a total disability as due to the accident, up to Rs. 2 lakhs insurance amount is given to the subscriber’s nominee.
  • A subscription holder’s bank account is automatically deducted from the premium.
  • The insurance holder has the choice of annually renewing the plan or going with the long-term option.
  • Anytime the subscriber wants, they can join and exit the program.

List of Banks Covered

  • Axis Bank
  • Allahabad Bank
  • Bank of India
  • Bharatiya Mahila Bank
  • Bank of Maharashtra
  • Central Bank
  • Canara Bank
  • Corporation Bank
  • Federal Bank
  • Dena Bank
  • HDFC Bank
  • IDBI Bank
  • ICICI Bank
  • Kerala Gramin Bank
  • IndusInd Bank
  • Kotak Bank
  • Punjab and Sind Bank
  • State Bank of India
  • South Indian Bank
  • Punjab National Bank
  • Syndicate Bank
  • State Bank of Hyderabad
  • Oriental Bank of Commerce
  • United Bank of India
  • State Bank of Travancore
  • Vijaya Bank
  • Union Bank of India
  • UCO Bank

Participating Insurance companies are as follows:

  • Cholamandalam MS
  • Bajaj Allianz
  • Universal Sompo
  • ICICI Lombard
  • New India Assurance
  • National Insurance
  • United India Insurance
  • Reliance General Insurance

The PMSBY Scheme’s eligibility requirements

The following are the requirements for participation in the Pradhan Mantri Suraksha Bima Yojana:

  • The lower age of the insurance holder must be 18 years old.
  • The age restriction is 70 at the most.
  • A savings bank account and an age range between 18 and 70 years old are requirements for eligibility to purchase the policy.
  • The bank account & Aadhar card of the insurance holder must be interconnected.
  • The application form must be submitted with a copy of the Aadhaar card if the bank account is not connected to the Aadhaar card.
  • If a person has several savings accounts, they can only sign up for the program using one bank account.
  • The annual premium is Rs. 12.00.
  • The insured’s bank account is automatically deducted from the premium payment.
  • The program might be extended at the end of the year for an additional year.
  • The aspirant’s Aadhaar card is the main KYC document needed.

Conditions Included in the Pradhan Mantri Suraksha Bima Yojana

The PMSBY Scheme protects policyholders from the following medical costs:

  • If an accident results in the policyholder’s death, a 2-lakh rupee payment is made to the nominee.
  • In the event of a permanent complete disability, a payment of Rs. 2 lakhs is offered.
  • If you have a permanent partial handicap, you can receive a benefit of Rs. 1 lakh.
  • In keeping with the terms and circumstances of the policy, permanent total disability and permanent partial disability are defined differently.

Conditions that are not covered under PMSBY Scheme

The policyholders are covered under the PMSBY Scheme in the event of death and disability. Nevertheless, there are significant limitations when it comes to the manner of death and the type of impairment. The following are excluded from the plan’s coverage:

  • Suicidal death
  • Non-permanent impairments, or partial disabilities without a loss that cannot be recovered, are not covered as previously stated.

How can I sign up for the PM Suraksha Bima Yojana online?

The methods to sign up for the   PMSBY Scheme are listed below:

  • Customers can go to one of the participating banks or an insurance business to choose the Pradhan Mantri Suraksha Bima Yojana.
  • Most reputable banks permit users to purchase policies using online banking.
  • A subscriber must log in to their Internet banking account and sign up for the program.
  • Messages can be sent to the toll-free lines of banks and insurance firms using the subscriber’s registered mobile phone.

Documents Needed for the PMSBY Scheme

The following paperwork is needed from the policy buyer to participate in the PMSBY Scheme:

Correctly filled application Form: An application for the PMSBY that has been properly filled out and contains information on the chosen aspirant, including name, contact information, and Aadhaar card number. The form is provided not just in English but also in Marathi, Hindi, Oriya, and other regional tongues.

Aadhaar Card: The insurance buyer must provide the Aadhaar card with the application form if the Aadhaar card information is not connected to the specified savings bank account.

How can you renew your PMSBY Policy?

Enabling the auto-debit function will allow you to renew PMSBY. This will result in the renewal of the insurance and the automated debiting of the premium from your bank account. Every year, the program may be renewed. The policy’s term runs from June 1 to May 31. So, before May ends, the policy should be renewed. Sending a cancellation request to the relevant bank is required if you decide not to renew.

How to claim the PMSBY advantages?

If you have a partial or complete handicap, you may file a claim with the PMSBY. Your nominee may submit a claim in the event of your death. The claim amount will be awarded to the policyholder’s legitimate successor if there is no designee. Here we have mentioned the steps for rising a claim for PMSBY policy.

  • The nominee or policyholder must contact the insurance company or the respective bank where the policy was purchased to submit a claim.
  • Obtain and complete the claim form. Details like address, name, contact number, and hospital information will be included. The form is accessible in a variety of languages, including Punjabi, Telugu, and others.
  • Send the completed form together with any pertinent supporting documents, such as a death certificate or a certificate of incapacity, if the nominee is bringing a claim.
  • The insurance provider will validate the information in Step 4.
  • If the papers are accurate, the claim will be resolved and the claim money will be paid to the designated bank account.

Method to check the application status of the PMSBY Scheme

You can check your application form status by following the given instructions:

  • Go to the webpage for your bank.
  • Use your online banking login information to access the site.
  • Visit the relevant PMSBY section in step three.
  • The bank account number is entered in Step 4.
  •  Enter the PMSBY application number in the fifth step.
  • Click the “Submit” option in step six.
  • Check your application status at the end.

Frequently Asked Questions

Do NRIs qualify for PMSBY Policy?

An NRI may enroll in the PMSBY program if they match the qualifying requirements and have an appropriate bank account in India. The nominee will get the claim benefit in Indian rupees.

Will the policyholder get any benefits if an accident causes a partial disability?

Yes, the subscriber would receive Rs. 1 lakh in case of accident-related partial disability.

Owners of joint accounts are they eligible for this policy?

Co-owners of accounts are, in fact, also eligible for the PMSBY policy.

Can the hospitalisation costs be covered by this program?

No, hospitalisation costs incurred after an accident that causes death or disability are not covered by insurance.

Is a police FIR required to submit a claim under the program?

The response differs depending on the circumstances. For instance, a police FIR is required if the accident was caused by an automobile collision. The impairment brought on by falling from a tree does not require it. Hospital records should be sufficient for that.

Is it feasible to join the program for a year, leave it for a few, and then come back?

Yes, Re-joining the plan is an option.

When may I submit a claim for PMSBY?

Within 30 days following the accident, the beneficiary must file the claim form by the PMSBY Scheme.

What are the program's main advantages?

The policyholder will get a predetermined amount in the event of incapacity, and the nominee will receive a fixed amount in the event of the policyholder’s death, as the scheme’s main benefit. According to the terms and conditions, the amount shall be as specified.

Will the nominee or the legal successor receive any advantages if the subscriber is gone and their death is unrecognised?

Insurance benefits are only given upon verification of the insured’s demise or the expiration of the seven-year presumption period as forth by law.

Are natural disaster-related deaths or disabilities covered?

Yes, the natural disasters stated in the terms and conditions are covered in the event of death or incapacity.

If I already have an insurance plan, would I still be able to benefit from this one?

Yes, you will receive the program’s advantages in addition to your current accidental insurance coverage.