May 14, 2015

Pradhan Mantri Suraksha Bima Yojana

Pradhan Mantri Suraksha Bima Yojana

Central government announced insurance scheme Pradhan Mantri Suraksha Bima Yojna (for Accidental Death and permanent disability), Pradhan Mantri Jeevan Bima Yojna (for life insurance) and Atal Pension Yojna (for pension). This schemes are aimed at providing affordable universal access to essential social security protection in a convenient manner linked to auto-debit facility from the bank account of a subscriber.

Highlights of the scheme Pradhan Mantri Suraksha Bima Yojana (PMSBY - Scheme 1 - for Accidental Death Insurance)

The scheme will be a one year cover, renewable from year to year. The scheme known as Pradhan Mantri Suraksha Bima Yojana, would be offering accidental death and disability cover for death or disability on account of an accident. The scheme would be offered / administered through Public Sector General Insurance Companies (PSGICs) and other General Insurance companies willing to offer the product on similar terms with necessary approvals and tie up with Banks for this purpose. Participating banks will be free to engage any such insurance company for implementing the scheme for their subscribers.

Eligibility - All savings bank account holders in the age group between 18 years to 70 years in Participating Banks will be entitled to join the scheme. In case of multiple saving bank accounts held by an individual in one or different banks, the person would be eligible to join the scheme through one savings bank account only. Aadhar would be used as the primary KYC for the bank account.

Enrollment Modality / Period - The cover shall be for the one year only starting from 1st June to 31st May for which option to join / pay by 'Auto Debit' from the designated savings bank account on the prescribed form will be required to be given by 31st May of every year, extendable up-to 31st August. This is the only mode of payment available.

Risk Coverage / Benifits - As per the following table:

Table of Benifits Sum Assured
A Death Rs. 2.00 Lakh
Total and irrecoverable loss of both eyes or loss of use of both hands or feet or loss of sight of one eye and loss of use of one hand or one foot
Rs. 2.00 Lakh
C Total and irrecoverable loss of sight of one eye or loss of use of one hand or one foot Rs. 1.00 Lakh

Premium - Rs. 12/- per annum per member. The premium will be deducted from the account holders savings bank account through 'Auto Debit' facility in one installment on or before 1st June of each annual coverage period under the scheme. However, in case where 'Auto Debit' takes place after 1st June, the cover shall commence from the first day of the month following the 'Auto Debit'.

Termination of cover - The accident cover for the member shall terminate on any of the following events and no benefit will be payable there under:
1) On attaining the age 70 years (age nearest birth day)
2) At the time of renewal, closure of account with the Bank or insufficiency of the balance to keep the insurance in force.
3) If a member is covered through more than one account and premium is received by the insurance company inadvertently, insurance cover will be restricted to one only and the premium shall be liable to be fortified.
4) If the insurance cover is ceased due to any technical reasons such as insufficient balance on due date or due to any administrative issues, the same can be reinstated on receipt of full annual premium, subject to conditions that may be laid down. During this period, the risk cover will be suspended and reinstatement of risk cover will be at the sole discretion of the Insurance Company.
5) Participating banks will deduct the premium amount in the same month when the 'Auto Debit' option is given, preferably in May of every year, and remit the amount due to the Insurance Company in that month itself.

Read also other related article:

The official website of the scheme is
National Toll-Free No – 1800-180-1111 / 1800-110-001
StateWise Toll free number are listed in the document attached Statewise Toll-Free (pdf)

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