Time and again, the Government of India has taken steps to ensure optimum care and protection of its citizens. From bringing about developmental and infrastructural changes in the healthcare industry to providing social security through various subsidised health insurance policy schemes, the Indian Government has left no stone unturned in showing concern for its citizens.
Back in the year 2015, the then Finance Minister of India – Late Mr. Arun Jaitley – launched three social security schemes during the Budget Speech. All these schemes were aimed to provide social security to those working in the unorganised sector in India. One of these three schemes was Pradhan Mantri Suraksha Bima Yojana (PMSBY).
Through this article, we have tried to throw some light on the PMSBY scheme and what it is all about. Continue reading to know more.
What is Pradhan Mantri Suraksha Bima Yojana (PMSBY)?
As mentioned above, the Pradhan Mantri Suraksha Bima Yojana (PMSBY) is one of the social security schemes which was launched by the Government of India during the 2015 Budget Speech in the Parliament. The PMSBY scheme is a Government-backed accident insurance scheme which provides protection against accidental death and disability to individuals between 18 to 70 years of age.
This scheme is highly helpful in preparing an individual for unexpected emergencies by providing an accident insurance coverage of up to ₹2 lakhs at a highly affordable premium of ₹20 per annum.
PMSBY scheme details
The primary features of the PMSBY insurance scheme include:
- Coverage for a year and is renewable on annual basis
- Indians as well as NRIs can avail the benefits of this scheme
- Provides coverage of up to ₹2 lakhs against death and full or partial disability caused due to an accident
- The annual cover will remain valid from 1st June till 31st May
- To avail the benefits under this scheme, each member will have to pay an annual premium of ₹20
- Annual premium of ₹20 will be auto-debited from the beneficiary’s bank account
Inclusions & exclusions under the PMSBY scheme
Here is what will be covered and what won’t, under the PMSBY insurance scheme:
- Accidental death of the applicant will be covered by the scheme.
- If the applicant dies by suicide, it won’t be covered by the scheme.
- If the applicant dies because of murder, it will be covered by the scheme.
- Permanent total disability, i.e. loss of both eyes, hands, or feet will be covered.
- Permanent partial disability, i.e. loss of one of the eyes, hands, or legs will also be covered.
- A compensation of ₹2 lakh will be paid in case of accidental death or permanent total disability. Whereas, in case of partial disability, a compensation of ₹1 lakh will be paid.
Benefits of PMSBY
Here are some benefits of the Pradhan Mantri Suraksha Bima Yojana:
- Affordable Premium: Just ₹20 per annum, ensuring cost-effective coverage.
- Financial Security: Helps families cope with financial stress in case of accidents.
- Easy Enrolment: Can be linked to any bank account with minimal paperwork.
- Nationwide Availability: Open to all eligible individuals across India.
- Supplement to Family Health Insurance: Complements existing family health insurance plans by covering accidental risks.
How to apply for PMSBY?
The PMSBY scheme will be administered through public sector general insurance companies and private insurance companies such as ICICI Lombard. You can apply with any of these insurance companies through SMS or Net Banking to become a beneficiary under this scheme.
All you need to do is download the PMSBY form the Government website and approach a bank or insurance company with the duly filled form.
Steps to enrol for PMSBY through SMS
- Step 1 – Send a message on the onboarding organisation’s toll-free number
- Step 2 – You will receive an activation message
- Step 3 – Reply to the activation message with “PMSBY Y”
- Step 4 – You will receive an acknowledgement message
- Step 5 – The bank will process your request as per the information in your savings account
Steps to enrol for PMSBY through Net Banking
- Step 1 – Log in to your net banking account
- Step 2 – Click on “Insurance”
- Step 3 – Select the bank account to be used for premium payment
- Step 4 – Verify the details and click on “Confirm”
- Step 5 – Download and save the acknowledgement receipt for future reference
Documents required under PMSBY Scheme
Give below is a list of documents needed for PMSBY scheme-
- Aadhaar Card (linked to the bank account).
- Bank Account Details (for auto-debit of premium).
- Application Form (available at banks and online portals).
- Nominee Details (to ensure smooth claim settlement).
How to file a claim under PMSBY?
In case of accidental death or disability of the beneficiary, he/she or his/her nominee can file a claim under the PMSBY insurance scheme. Here’s what needs to be done:
- Step 1 – Reach out to the bank or insurance company from where the scheme was purchased.
- Step 2 – Obtain a claim form and fill it. It may ask for your name, address, contact details, and accident details. You can download the PMSBY claim form Jansuraksha
- Step 3 – Submit the duly filled claim form with relevant supporting documents, including the death certificate or disability certificate.
- Step 4 – After verifying the documents submitted by you, the insurer will transfer the claim amount to the specified bank account.
FAQs
- Does PMSBY cover hospitalisation costs for accidents leading to death or disability?
No, PMSBY does not reimburse hospitalisation expenses. The scheme only provides financial assistance in case of accidental death or permanent disability.
- Who can receive the insurance payout if the insured person passes away?
The nominee mentioned in the enrolment form will receive the insurance amount. If no nominee is registered, the legal heir can apply for the claim.
- How is the insurance claim amount paid?
For disability claims, the insured person receives the amount in their bank account. In case of death, the payout is transferred to the nominee’s or legal heir’s account.
- Will the insurance cover apply if the policyholder dies by suicide?
No, PMSBY does not provide benefits in case of suicide.
- Is a police report necessary to file an insurance claim for an accident?
Yes, for accidents such as road mishaps, drowning, or criminal incidents, an FIR is required. However, in cases like snake bites or falls, hospital records can serve as proof.
- If a person goes missing, will their family receive the insurance payout?
No, the claim is approved only when death is confirmed with valid documentation proving it was due to an accident.
- What compensation is given for partial disability?
The scheme only covers complete and irrecoverable loss of sight in one eye or total loss of function in a hand or foot. Partial disabilities that do not meet these criteria are not covered.
- Can someone claim benefits from multiple banks if they have enrolled in PMSBY through different accounts?
No, even if an individual has registered through multiple banks, they can claim the benefit only once.
- Is it possible to enrol in PMSBY through multiple bank accounts?
No, a person can enrol only once, even if they hold multiple bank accounts.
- What is the eligible age range for joining PMSBY?
People aged between 18 to 70 years can enrol in the scheme.
- How is the insurance premium paid?
The premium is automatically deducted from the insured person’s bank account every year.
- If I missed enrolling in the first year, can I join later?
Yes, if you didn’t enrol initially, you can join in later by providing consent and ensuring your bank account has sufficient funds for premium deduction.
- Can someone rejoin the scheme after leaving it?
Yes, individuals who exit the scheme can re-enrol in the following years by paying the premium again.
- Can PMSBY benefits be claimed along with other insurance policies?
Yes, PMSBY benefits are independent of other insurance plans and can be claimed even if you have additional coverage.
- Does PMSBY cover accidents due to natural disasters? What about cases of murder or suicide?
Yes, PMSBY covers accidental death or disability caused by natural disasters like floods and earthquakes. It also covers murder cases, but it leaves out suicide cases from ts coverage.
- Can all members of a joint bank account enrol in PMSBY separately?
Yes, all joint account holders can individually register for the scheme, provided they pay the premium separately.
- What types of bank accounts qualify for PMSBY enrolment?
Any savings bank account with an auto-debit facility is eligible for enrolment.
- Can NRIs enrol in PMSBY?
Yes, NRIs can join the scheme, but claims are payable only in Indian currency and will be given to a nominee or legal heir residing in India.
Conclusion
The essence of the PMSBY scheme is to provide social security to the citizens through personal accidental cover at a much lower price than the prevalent market rate. It is a yearly scheme that needs to be renewed every year through auto-debit of the premium amount of ₹20. The policyholder or his/her nominee will get a fixed sum of ₹1 lakh or ₹2 lakhs upon filing a claim. With its affordable premium, easy enrolment and significant benefits, it is a valuable addition to your health insurancepolicy. Enrolling in PMSBY is a simple yet effective step toward securing your family’s financial future against accidental risks.
Disclaimer: The information provided in this blog is for educational and informational purposes only. It may contain outdated data and information regarding the Insurance industry and products. It is advised to verify the currency and relevance of the data and information before taking any major steps. ICICI Lombard is not liable for any inaccuracies or consequences resulting from the use of this outdated information.