April 18, 2016

Pradhan Mantri Suraksha Bima Yojana (PMSBY) details

The Pradhan Mantri Suraksha Bima Yojana (PMSBY) scheme is the cheapest accident insurance policy in India. The Indian Government mentioned this low-cost accident insurance scheme earlier in parliament and then officially launched in Kolkata on May, 2015. This government supported accident insurance scheme has been introduced to help every citizen. The policy is the best option for those who cannot afford any accident insurance policy. The people can join just by paying lowest premium once in a year. This will attract the lower middle class people to have protection insurance cover at an affordable cost. The world’s largest population country has only 20% of its people holds accident insurance policy. This scheme will help to increase the number of accident insurance policy holders.

Any Indian who is aged between 18 to 70 years (Age limit) is eligible to join instantly through simple process. They must be holding a savings bank (SB) account for enrolling the policy. The account should be linked with Aadhaar card number is mandatory. Whoever linked their savings account with AADHAAR card can join the scheme just by submitting the required application or proposal form to the participating bank. The policy does not require any medical examination for enrollment. The person cannot have more than one policy even though they have multiple bank accounts from different banks.

The premium of Rs. 12 is payable as a single installment. The premium will be debited directly from account holder’s savings bank account. The policy can be renewed every year as mode of single premium. The policy holder can instruct the bank to deduct the premium automatically from the savings account every year. They can give consent to the participating bank to enable the auto debit facility for deducting the annual premium. The deduction from the savings account happens probably in the month of May. The policy gets automatically closed when the person attains the age of 70 years. This policy will also help to reduce the number of zero balance savings accounts. The aim is to make the subscriber to maintain the minimum account balance in respective bank account.

The policy assures (Risk cover) sum of Rs. 2, 00, 000 for nominee in case of accidental death and for total irrecoverable loss. The loss of both eyes, both hands and both foots are considered as total irrecoverable loss. The sum of Rs. 1, 00, 000 will be paid to the account member due to accidental injuries which caused the partial disability. The partial disability can be the loss of physical part such as sight of one eye, one hand and one foot.

This insurance scheme is offered by Public Sector General Insurance Companies (PSGICs) such as New India Assurance Company, National Insurance Company, The Oriental Insurance and United India Insurance. The bank plays the role of administration. The bank deducts the money from the account and remits it to the insurance company. The policy is guided by the Government of India. In case the policy is not renewed due to in sufficient bank balance in the account, the individual can rejoin again. In case any claim, the settlement will be finalized by the insurance company in consultation with the bank (Please read the official document or consult with concern insurance company for more information).