Pradhan Mantri Suraksha Bima Yojana (PMSBY)
Insurance is not a new concept in modern India. However, in rural areas, insurance is limited and only a few insurance companies operate. A large majority of rural people live below the poverty line and cannot afford insurance.
PMSBY was launched to ensure accident insurance benefits for such people at an affordable premium, as part of Jan Dhan Yojana.
Suraksha Bima Yojana Benefits
- The death benefit cover is up to ₹2 lakh
- Permanent total loss of both hands, both eyes, or one leg & one eye: ₹2 lakh
- Loss of one hand, one leg, or one eye: ₹1 lakh
Premium
The premium for PMSBY is just ₹12 per annum, making it highly affordable. It is auto-debited from the policyholder’s savings bank account and renewable every year in June.
Eligibility
- Age: 18 to 70 years
- Must have a savings bank account
- Consent for auto-debit facility
Features
- Affordable premium at ₹12 annually
- Coverage for accidental death and disability
- Premium auto-debited from savings bank account
- Renewable every year
Scope of Coverage
The insurance provides coverage for:
- Accidental death
- Total and irrecoverable loss of sight in both eyes
- Total loss of use of both hands or feet
- Loss of sight of one eye and use of one hand or foot
Termination
- On reaching 70 years of age
- Non-maintenance of sufficient balance for premium auto-debit
- Closing of the linked bank account
Claim Settlement Process
In case of an accident, claim forms are available at the bank branch. Required documents include death certificate, post-mortem report, FIR, hospital records, and bank details. Once submitted, the claim is processed and the amount transferred to the nominee’s account.
Note: Claims must be submitted within 30 days of the accident. The scheme is renewable annually with an affordable premium of ₹12.