Tuesday , September 18 2018

Pradhan Mantri Suraksha Bima Yojana (PMSBY)

Pradhan Mantri Suraksha Bima Yojana (PMSBY)

Life insurance policies are not a new thing in the nation. Almost every financial institutes including government have several life insurance plans for the inhabitants of the nation. But there are people who are unable to opt for any insurance due to heavy premium, especially people who belong to under the poverty line, economically weaker groups and low income sections. The Suraksha Bima Yojana was launched for the accident victims who have lost their life or become partially or fully physically disable. This scheme was announced in budget for FY 2015-16. Officially the scheme was launched by the Prime Minister in mid of 2015.

Pradhan Mantri Suraksha Bima Yojna

Suraksha Bima Yojana – key features

  • Suraksha Bima Yojana is an accident insurance yojana launched by the central government of India. Under this scheme the applicant will get the coverage if he/she loses life or gets physically disabled due to accidents.
  • This scheme will be operated under the Pradhan Mantri Jan Dhan Yojana. The applicant has to have at least one bank account to avail the scheme.
  • Under this scheme the victim will get Rs. 2 Lac in case of death and Rs. 1 Lac in case of physical disability as insurance coverage. In case of death the nominee will get the money.
  • This scheme will be funded by the central government of India. There will be a number of agents under which the applicants can opt for the scheme. The public sector banks and some of the private banks are offering Suraksha Bima Yojana to the customers. Regional Rural Banks are also offering the same.
  • It is an accident insurance scheme. The applicable age limit for the scheme is 18 to 70 years. After 70 years the scheme will be dissolved automatically.

Benefits of the scheme

  • The scheme will be linked to the Jan Dhan Yojana, that is one who holds a jan dhan account with zero balance can avail the scheme.
  • The family of the victim, in case of death, will get up to Rs. 2 Lac at the time of the accident. Victims who will be disabled fully will also get Rs. 2 Lac. People who will be partially disabled will get Rs. 1 Lac.

Eligibility under the scheme

  • People who are aged between 18 years and 70 years will be eligible for the scheme. Once the applicant crosses the 70 years the scheme will be dissolved automatically.
  • People with Jan Dhan bank account will be eligible for the scheme as well. Jan Dhan bank accounts are zero balance accounts for the poor people.
  • The applicants who don’t have Jan Dhan bank account but are having saving account in any Indian bank can also be eligible for the scheme.
  • The applicant must produce a consent letter for the service like auto-debit of funds. With this consent letter the premium will be deducted from the applicant’s saving accounts accordingly.

Premium under the scheme

The premium of this insurance scheme is as low as Rs. 12 per annum. As per the rule of the scheme every year on the 1st day of the month June the amount will be deducted from the saving account of the applicant. There must be auto-debit consent letter by the applicant presented in the bank. The debit takes place only through auto-debit service.

Termination of the scheme

  • As mentioned that the insurance can be terminated or dissolved automatically if the applicant crosses 70 years of age without meeting any accidents.
  • Also there are other factors like if the saving account the applicant has, is closed or deactivated at any point of time then the scheme will be terminated.
  • If there is low or insufficient balance in the account for auto-debit then also the scheme can be terminated automatically.
  • According to the scheme one scheme can be availed, even when the applicant holds multiple saving accounts. If the applicant has more than one scheme then the scheme gets terminated for the applicant.

Claim settlement

  • To claim the insurance coverage one must take few steps. At the first place some of the documents need to be presented before the bank of concern. The papers include death certificate of the victim, post mortem reports or FIR, discharge certificate from the hospital, and insurance papers.
  • Once the papers are being submitted the concerning bank will send the papers for verification in insurance company. Once the verification process is over the applicant will receive the claim instantly.

Points to be noted in Pradhan Mantri Suraksha Bima Yojana

Parameters Details
Name of The Scheme Pradhan Mantri Suraksha Bima Yojana
Premium Rs 12 per Year
Age Limit 18 to 70 Years
Coverage Amount Rs 2 Lakhs
Nature of loss By accident only
Partially disable 1 leg, 1 hand or 1 eye loss
Fully disable 2 hands, 2 legs or 2 eyes loss
No. of scheme Only one scheme will be available for one saving account, even if the applicant holds multiple accounts.
If there is discrepancy in claim settlement The insurance company and the bank branch will be liable for that

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