PMSBY Scheme: The central and state governments have launched numerous schemes to benefit the public, including the Pradhan Mantri Suraksha Bima Yojana (PMSBY). Under this scheme, the government offers an accident insurance plan with a low premium. Its primary objective is to provide financial security to individuals in the event of death or permanent disability resulting from an accident.
Participants must pay an annual premium of just ₹20, and the scheme provides insurance cover of up to ₹2 lakh in case of accidental death or permanent disability.
If an individual has applied for this scheme—or is considering doing so—and subsequently suffers death or a specified type of permanent disability due to an accident, their nominee can receive the insurance payout in accordance with the scheme’s rules.
What is PMSBY?
PMSBY stands for Pradhan Mantri Suraksha Bima Yojana. It is a one-year personal accident insurance scheme that can be renewed annually. The scheme primarily covers death and permanent disability caused by accidents. The premium is deducted via auto-debit from the subscriber’s bank or post office account.
What is the payout under PMSBY?
The amount payable in the event of an accident depends on the nature of the disability or death. Benefits include ₹2 lakh for accidental death, ₹2 lakh for permanent total disability, and ₹1 lakh for permanent partial disability.
What is the annual premium?
The annual premium for PMSBY is ₹20 per person. This amount is deducted in a single instalment via auto-debit from the bank or post office account. Essentially, an eligible individual receives accident insurance coverage for an annual premium of ₹20.
Who can avail the benefits of PMSBY?
To join the scheme, the individual must be between 18 and 70 years of age. Additionally, the individual must hold an account with a bank or a post office. To join this scheme, providing consent and authorising auto-debit is mandatory. If an individual holds multiple bank or post office accounts, they can join the scheme through only one.
What is the duration of the PMSBY insurance cover?
The PMSBY cover typically runs for one year, from June 1st to May 31st. It can be renewed annually through the auto-debit of the premium. If an eligible person joins the scheme later, the risk cover begins on the date the premium is auto-debited.
Are hospitalisation expenses covered in the event of an accident?
PMSBY primarily provides insurance cover for death or specified permanent disability resulting from an accident. Hospitalisation expenses incurred solely due to admission following an accident are not covered separately under this scheme.
Which accidents are covered?
Under this scheme, an accident is defined as an event caused by sudden, unforeseen, and external factors. Deaths or disabilities resulting from natural calamities may also be covered, provided they fall within the scheme’s definition of an accident. However, PMSBY does not provide cover for death by suicide, whereas death caused by homicide is covered.
How does the family receive the insurance amount?
If the insured person dies due to an accident, the nominee can file the insurance claim. Without a nomination, the legal heir can file the claim under the scheme’s rules. In the event of disability, the specified insurance amount is credited to the insured person’s bank account, whereas the death benefit is paid to the nominee or the eligible legal heir.
What happens if there are insufficient funds in the bank account?
The PMSBY premium is deducted via auto-debit from the bank or post office account; therefore, maintaining a sufficient balance is essential. The cover may lapse if the account is closed or if there are insufficient funds to continue the insurance.
What happens after the age of 70? The eligible age range for enrollment in PMSBY is 18 to 70 years. According to the scheme’s rules, the accident cover ceases upon the individual attaining the age of 70.
Can an individual hold multiple accounts?
If an individual has more than one bank account and the PMSBY premium is inadvertently paid through multiple accounts, the insurance cover will apply to only one account; the premiums paid for the other accounts will be forfeited.
How can one enrol in PMSBY?
You can contact your bank to enrol in PMSBY. Enrollment requires submitting an application and authorising the auto-debit of the premium from your account. Application and claim forms for PMSBY are available on the government’s official ‘Jan Suraksha’ website.
Why is PMSBY beneficial?
The key features of PMSBY are its low annual premium and the insurance coverage provided in the event of an accident. For an annual premium of just ₹20, an eligible individual can secure coverage ranging from ₹1 lakh to ₹2 lakh for accidental death or permanent disability. However, it should not be considered a substitute for health or life insurance, as the coverage applies only to death or disability resulting from an accident.
Conclusion
The Pradhan Mantri Suraksha Bima Yojana (PMSBY) is a government insurance scheme that provides protection against financial risks arising from accidents at a low premium. Eligible bank account holders aged 18 to 70 years can enrol in this scheme. For an annual premium of ₹20, it offers a benefit of ₹2 lakh in the event of accidental death or permanent total disability, and ₹1 lakh for permanent partial disability.