Pradhan Mantri Suraksha Bima Yojana (PMSBY): Benefits and Eligibility

The Government of Suraksha Bima Yojana India brings in several welfare schemes for the well-being of the citizens, especially the weaker sections of the population. In May 2015, the Government of India introduced three welfare schemes to help the average Indian citizen fortify their financial plan – Pradhan Mantri Jeevan Jyoti Bima Yojana (life insurance scheme), Pradhan Mantri Suraksha Bima Yojana (accident insurance scheme) and Atal Pension Yojana (retirement/pension scheme).

In this article, we will look at Pradhan Mantri Suraksha Bima Yojana or PMSBY scheme details, including the meaning, PMSBY benefits, PMSBY features and eligibility for a PMSBY insurance policy.

Suraksha Bima Yojana

What is Pradhan Mantri Suraksha Bima Yojana (PMSBY Insurance)?

The Pradhan Mantri Suraksha Bima Yojana, or a PMSBY scheme, is an accidental death or disability insurance policy which offers an annual cover and can be renewed every year. The Public Sector General Insurance Companies and some private sector general insurers offer PMSBY insurance by tying up with various banks across the country.

The PMSBY insurance policy provides a cover of ₹2 lakh for accidental death or complete and irreparable disability. For partial and irreparable disability, you will receive ₹1 lakh.

Interested applicants between the ages of 18 to 70 years of age can opt for the PMSBY insurance policy through any one of their savings bank accounts for an annual premium of just ₹12.

Suraksha Bima Yojana

Following is a list of PMSBY features:
 
  • The annual PMSBY insurance policy tenure is from the 1st of June to the 31st of May. Applicants can subscribe to the PMSBY scheme at any time during the policy tenure.
  • The annual premium of ₹12 is auto-debited from the policyholder’s attached bank account in the last week of May.
  • In case of partial or total disability, the applicable financial PMSBY benefits will be paid to the policyholder.
  • In case of accidental death of the policyholder, financial compensation will be paid to the appointed nominee.
  • Applicants can subscribe to the PMSBY scheme by getting the PMSBY enrolment form (online or at their bank) and submitting the duly filled copy at their bank (where the attached savings account is).
Following is a list of PMSBY benefits:
  • The PMSBY scheme provides accidental death and disability coverage at an affordable rate of just ₹1 per month.
  • The policyholder can renew or discontinue the PMSBY insurance at their convenience and with ease.
  • The accidental death benefit is great for people in hazardous occupations or living in accident-prone areas as it assures the financial security of family members.
  • The policyholder can rest assured about the annual premium payment with the auto-debit facility.
  • The PMSBY scheme details, including entry, exit, renewal and claim details are easy to understand.
  • You can enjoy tax* benefits on the premiums paid and the disability as well as death benefits payouts under the Indian Income Tax Act.

Suraksha Bima Yojana

PMSBY Benefits Regarding the Financial Coverage Offered

The Pradhan Mantri Suraksha Yojana offers the following coverage options:

Circumstances Covered Financial Coverage Offered / Sum Assured
Accidental Death of the Policyholder ₹2 lakhs
Partial Accidental Disability

(Irrecoverable and total loss of use of one foot or hand OR loss of sight in one eye)

₹1 lakh
Total Accidental Disability

(Irrecoverable and total loss of use of both feet or hands OR loss of sight in both eyes)

(irrecoverable or total loss of use of one hand or foot AND loss of sight in one eye)

₹2 lakhs

 Eligibility Criteria for Enrolling in the PMSBY Scheme

the applicant should fulfil the following eligibility conditions if they wish to apply for Pradhan Mantri Suraksha Bima Yojana:

  • The applicant should be between 18 years and 70 years of age.
  • The applicant should have an active savings bank account at any of the registered banks in India.
  • In the case of multiple savings bank accounts, the applicant can have only one PMSBY insurance policy through any one of the savings accounts.
  • The Aadhar Card is the primary KYC required to enrol for the PMSBY scheme and should be linked to the savings bank account. If it is not linked, then the applicant should provide a copy of the Aadhar card with the PMSBY enrolment form.
  • If the policyholder is a Non-Resident Indian (NRI), all PMSBY benefits will be paid out in Indian Rupees (₹).
  •  If it is a joint savings bank account, all account holders can enrol for the PMSBY scheme through the same account.
Final Words

Pradhan Mantri Suraksha Bima Yojana is a great initiative by the Government of India to provide accidental death and disability coverage at an affordable price of just ₹12 per year.

Along with the PMSBY insurance policy, it is imperative to secure yourself with a life insurance plan. The Government of India had launched the Pradhan Mantri Jeevan Jyoti Bima Yojana (PMJJBY), a term insurance policy that offers a sum assured of ₹2 lakhs in case of death of the policyholder caused by any reason, including natural death, accidental death and death by suicide.

If you wish to opt for a higher sum assured or look for life cover with savings benefits, then you can browse through some of the  life insurance policies offered by  insurers in India.

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