Pradhan Mantri Suraksha Bima Yojana (PMSBY)

Pradhan Mantri Suraksha Bima Yojana – It is the second social security scheme launched by Prime Minister last year in May. Suraksha Bima Yojana is a pure accidental insurance offer to individuals with bank accounts. So basically what it does the same thing that is basically covered in accidental insurance. Accidental insurance is just like other insurance but it provides compensation for accidental injury or death. Many companies provide different benefit in accidental insurance. Basic accidental insurance cover death, loss of income, medical expenses, loss of sight and dismemberment by accidental injuries.

Pradhan Mantri Suraksha Bima Yojana

So let’s see now Pradhan Mantri Suraksha Bima Yojana help people of India. Now we will jump directly to the key features of this scheme.

Pradhan Mantri Suraksha Bima Yojana Features

Eligibility – Anyone between the age of 18 to 70 years who has a bank account can join this scheme.

Premium – The premium of this scheme is only rupees 12 per annum. Rupees 12 is very low as compared to existing products available in the market which are providing this kind of coverage. If we go outside this scheme we may have to pay up to 100 rupees to 200 rupees premium for this coverage.

Risk – It covers the risk coverage of rupees 2 lakhs for accidental death or full disability due to accident or rupees one lakh for partial disability due to the accident. Full disability is defined as the disability of both eyes both hands or both legs and partial disability is defined as disability off one eye or one limp.

Other features are very similar to Jeevan Jyoti Bima Yojana full details –

In short

Payment mode – The premium will be directly auto debited by the bank from the subscriber’s account

Terms of risk coverage – A person has to opt for the scheme every year. He can also prefer to give a long-term option of continuing

Term of Risk Coverage – A person has to opt for the scheme every year. He can also prefer to give a long-term option of continuing

Who will implement this scheme – This scheme will be offered by all Public Sector General Insurance Companies and all other insurers who are willing to join the scheme. Banks will be the master policyholder

Risk period – 1st June to 31st May every year

Number of Policy – One policy per person

How to Join – Fill the form and submit in your bank OR can join through online banking and few banks are also giving SMS service

Tax Benefit – Proceeds amount will get tax exemption u/s 10 (10D). No TDS up to 1 lakh

Pradhan Mantri Suraksha Bima Yojana Disadvantages

The major disadvantage of this scheme is that the risk of rich cannot be increased.

Pradhan Mantri Suraksha Bima Yojana Claim Process –

Now we will discuss the claim of Suraksha Bima Yojana which is little different and more complicated then claim process of Jeevan Jyoti Bima Yojana. This is difficult to understand because of the higher number of documentation required. So the person applying for the claim can be the nominee or the original policyholder. The person has to go to the bank branch where the original policy was taken and submit the claim form.

Death Case

In case of death of the original policyholder, the following documents are to be submitted along with the cancelled cheque of nominees account.

FIR/ Panchnama
Post Mortem Report
Death Certificate

Disability Case

In the case of disability, the following documents are to be submitted along with the claim form. Ideally, the claim should be submitted around 30 days of the accident and the processing time is also maximum 30 days.

FIR/ Panchanama
Disability Certificate

In Conclusion – Claim amount will be received by the nominee or the original policyholder through NEFT only. Now the benefits of Pradhan Mantri Suraksha Bima Yojana are very similar to Jeevan Jyoti Yojana which you can check here – Benefits of Pradhan Mantri Jeevan Jyoti Yojana. (Link)

Frequent Asked Question About Pradhan Mantri Suraksha Bima Yojana

Q1. Should I join this scheme?
Answer: Are you still think of Rs 12/ annum premium? Most people should not think about 12 rupees per year for joining this scheme or not. Already more then 13 crore people in India have joined the scheme. You should also encourage others also to join this scheme as the more number of people will join more sustainable it becomes for the insurance company, bank and government to continue with this scheme and this kind of premium for the long term. This scheme is very beneficial for the people who are in a hazardous professions such as mining, river rafting or aircraft pilots who do not get accidental insurance very easily.

Q2. Will this cover be in addition to coverage under any other insurance scheme?
Answer: Yes.

Q3. Can all holders of joint bank account join this scheme?
Answer: Yes they can. All holders of a joint account can join the scheme if they satisfy eligibility by paying a premium of Rs. 12 per person per annum.

Q4. Can one subscribe to both PMJJBY and PMSBY?
Answer: Yes.