PRADHAN MANTRI SURAKSHA BIMA YOJANA
Modi Government has launched Pradhan Mantri Suraksha Bima Yojana (PMSBY) to provide Social security cover to the general public.
PMSBY – Scheme 1 - for Accidental Death Insurance
The insurer will get Rs. 2 lakh under this scheme which too at an annual premium of only Rs. 12 per year. That is, you can take advantage of this scheme at a monthly expense of Re 1. Let us determine every detail about this super insurance scheme by the Indian Government.
What is Pradhan Mantri Suraksha Bima Yojana (PMSBY)?
Pradhan Mantri Suraksha Bima Yojana (PMSBY) provides accident insurance of Rs 2 lakh just in case of accidental death or total disability. On permanent disability, a cover of Rs 1 lakh is available. Indians between 18 to 70 years of age, can take advantage of this. Its annual premium is just 12 rupees. On a monthly basis, it costs only 1 rupee.
Key features of PMSBY
Eligibility: Available to people in age bracket 18 to 70 years with checking account.
Premium: Rs.12 per annum.
Payment Mode: The premium will be directly auto-debited by the bank from the subscribers account on or before 1 st June of each annual coverage period under the scheme.
• Death - Rs 2 Lakh
• Total and irrecoverable loss of both eyes or loss of use of both hands or feet or loss of sight of 1 eye and loss of use of hand or foot - Rs 2 Lakh
• Total and irrecoverable loss of sight of 1 eye or loss of use of 1 hand or foot – Rs.1 Lakh.
A person having a checking account and Aadhaar number linked to the checking account can provides a simple form to the bank per annum before 1st of June in order to join the scheme. Name of nominee to be given in this form.
Terms of Risk Coverage
An individual has got to choose the scheme per annum. He/she also can like better to provides a long-term option of continuous during which case his/her account are going to be auto-debited per annum by the bank.
Who will implement this Scheme?
The scheme is going to be offered by all Public Sector General Insurance Companies and every one other insurer who are willing to hitch the scheme and tie-up with banks for this purpose.
- Various Ministries can also co-contribute premium for various categories of beneficiaries from their budget or from Public Welfare Fund created during this budget from unclaimed money. This will be decided separately during the year.
- Common Publicity Expenditure will be borne by the Government.
Provisions covered under the scheme
- Pradhan Mantri Suraksha Bima Yojana is out there to people (Indian Resident or NRI) between 18 and 70 years aged with bank accounts. It has an annual premium of Rs. 12 (17¢ US) exclusive of taxes. The GST is exempted this Yojana. The amount is automatically debited from the account. The accident insurance scheme can have one year cover from 1 June to 31 May and would be offered through banks and administered through public sector general insurance companies.
- Just in case of accidental death or full disability, the payment to the nominee are going to be Rs. 2 lakh (US$2,800) and just in case of partial Permanent disability Rs. 1 lakh (US$1,400). Full disability has been defined as loss of use in both eyes, hands or feet. Partial Permanent disability has been explained as loss of use in one eye, hand or foot. Further, death because of suicide, alcohol, drug abuse , etc. are not covered.
- This scheme is going to be linked to the bank accounts opened under the Pradhan Mantri Jan Dhan Yojana scheme. Most of these account had zero balance initially. The government aims to scale back the amount of such zero balance accounts by using this and related schemes. Now all checking account holders can avail this facility through their net-banking service facility at any time of the year.