Pradhan Mantri Suraksha Bima Yojana (PMSBY)

The Pradhan Mantri Suraksha Bima Yojana (PMSBY) is a government-backed accident insurance scheme launched by the Government of India. This scheme was introduced with the aim of providing affordable and accessible accidental death and disability insurance coverage to citizens across the country. PMSBY is one of the social security initiatives under the broader umbrella of financial inclusion, ensuring that even the economically vulnerable sections of society are protected against unforeseen accidents. (Let’s see Mudra Yojana article)

Suraksha Bima Yojana as a Central Gov Intiative

The primary aim of the Pradhan Mantri Suraksha Bima Yojana is to provide a safety net for individuals and families in case of accidental injuries or unfortunate demise. By offering insurance coverage at a minimal cost, the scheme aims to alleviate the financial burden that accidents can impose, thus ensuring that families are not left without support during times of crisis.

Need

Pradhan Mantri Suraksha Bima Yojana (PMSBY) is a government-backed insurance scheme that provides affordable accidental death and disability coverage to people in India. The scheme was launched in 2015 and is aimed at providing financial security to individuals from the economically weaker sections of society who may not have access to adequate insurance coverage.

The need for PMSBY arises from the fact that a large section of the population in India does not have access to insurance coverage, particularly for accidents resulting in disability or death. In case of an accident, the financial burden can be quite heavy, and without adequate insurance coverage, it can be difficult for families to cope with the loss of income or additional expenses incurred due to disability.

PMSBY addresses this need by providing affordable coverage to individuals at a premium of just Rs. 12 per annum. The scheme has a low premium rate, making it accessible to a large number of people, and offers a high coverage amount of Rs. 2 lakh in case of accidental death or permanent disability. This helps to provide financial security and peace of mind to the insured and their families in case of an unfortunate event.

Overall, PMSBY is an important scheme that helps to bridge the gap in insurance coverage and provides a safety net for those who may not have access to adequate insurance otherwise.

Feature

Pradhan Mantri Suraksha Bima Yojana (PMSBY) is an insurance scheme launched by the Government of India. The features of the scheme are:

1. Eligibility: The scheme is open to all individuals between 18 and 70 years of age with a savings bank account.
2. Premium: The premium for the scheme is Rs. 12 per annum, and it is renewable every year.
3. Coverage: The scheme provides coverage of up to Rs. 2 lakh in case of accidental death and permanent disability, and up to Rs. 1 lakh in case of partial disability.
4. Enrolment period: The scheme can be enrolled from 1st June to 31st May of the following year.
5. Nomination: The account holder can nominate a person to receive the benefits in case of his/her death.
6. Auto-renewal: The scheme is auto-renewed every year unless the account holder opts-out of it.
7. Direct debit: The premium is directly debited from the account holder’s savings account on an annual basis.
8. Portability: The scheme is portable, which means that the account holder can transfer the scheme from one bank to another.
9. Tax benefits: The premium paid for the scheme is tax-deductible under Section 80C of the Income Tax Act, 1961.

Application Procedure

The Pradhan Mantri Suraksha Bima Yojana (PMSBY) is a government-backed accidental insurance scheme for individuals aged between 18 and 70 years. The scheme provides accidental death and disability coverage at a very affordable premium of Rs.12 per annum.

The application procedure for PMSBY is as follows:

1. Eligibility check: Check if you are eligible for the scheme. You must be an Indian resident between 18 and 70 years of age with a savings bank account.
2. Enrolment: Approach your bank or insurance provider where you hold your savings account and request the enrolment form for PMSBY. You can also download the form from the official website of the scheme.
3. Fill the application form: Fill the enrolment form with accurate details such as name, address, age, nominee details, etc. Provide the details of the savings bank account through which you will be paying the premium.
4. Submit the form: Submit the filled form to the bank or insurance provider along with the premium amount of Rs.12 for the coverage period of one year. You can also provide a standing instruction to your bank to auto-debit the premium amount from your savings account every year.
5. Acknowledgment: After processing your application, the bank or insurance provider will send an acknowledgment receipt. Keep the receipt safely for future reference.

Once enrolled, the accidental death and disability coverage of Rs.2 lakh and Rs.1 lakh, respectively, will be provided in case of any unfortunate event. The scheme is renewed annually, and the premium amount is automatically debited from the savings account.

Conclusion

The Pradhan Mantri Suraksha Bima Yojana stands as a testament to the government’s commitment to the welfare of its citizens. By offering affordable and comprehensive accident insurance coverage, the scheme serves as a vital safety net. It empowers individuals with the knowledge that, should the unexpected occur, they and their families will have financial support to fall back on. In a world where accidents are unpredictable, PMSBY brings a sense of security and stability, ensuring that even during times of adversity, individuals can look towards the future with confidence.