PMSBY: In today’s times, healthcare costs are rapidly increasing. The cost of hospital bills, tests, and medicines is becoming a burden on ordinary people. In such a situation, it has become extremely important for everyone to have some form of insurance cover or an emergency fund. However, due to limited income, people often cannot afford an insurance policy. For such individuals, the government’s Pradhan Mantri Suraksha Bima Yojana (PMSBY) can prove to be a better option.
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What is the Pradhan Mantri Suraksha Bima Yojana?
The Pradhan Mantri Suraksha Bima Yojana is a social security scheme launched by the central government that provides financial protection to ordinary citizens in case of an accident. Under this scheme, individuals need to pay a premium of just ₹20 per month, or ₹240 annually, in return for insurance cover of up to ₹2 lakh. This scheme was launched in 2015 to provide financial assistance to the family in case of an accident or accidental death.
Eligibility and Requirements
To benefit from this scheme, applicants must be between 18 and 70 years of age. They must also have a savings account with a bank or financial institution. PMSBY is an accidental insurance scheme that covers only death or disability due to accidents. This insurance must be renewed annually.
What is included in the insurance cover?
- If a person dies in an accident, their nominated family receives an insurance cover of ₹2 lakh.
- If a person becomes completely disabled in an accident, they receive an amount of ₹2 lakh.
- In the case of partial disability, cover of up to ₹1 lakh is provided.
- Note that this scheme does not cover natural deaths or deaths due to illness.
Application Process
The application process for the Pradhan Mantri Suraksha Bima Yojana is very simple. Interested individuals can apply for this scheme by visiting their nearest bank branch. It is mandatory to have a savings account with the bank where the application is being made. The bank provides a PMSBY form, in which the applicant must fill in the required details. Along with this, certain documents such as identity proof and a copy of the bank passbook must be submitted. Upon completion of the application, insurance coverage is activated, and the premium is automatically deducted from the account.
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Benefits of the Scheme
The most significant feature of this scheme is that it provides high security at a very low premium. Millions of people across the country have joined this scheme to provide financial security to their families. This scheme provides a significant relief to the family in times of unforeseen events like accidents.