All About Pradhan Mantri Suraksha Bima Yojana

The Pradhan Mantri Suraksha Bima Yojana is an accident scheme of the government that covers permanent disability, accidental death and partial disablement. The eligible ones are those between 18 and 70 years of age with a bank account.

 The scheme requires a yearly premium of Rs. 20 which is automatically deducted from the beneficiary’s bank account.

 The scheme covers the following:

• Permanent partial disability with a coverage of Rs. 1 lakh
• Permanent total disability with coverage of Rs. 2 lakhs
• An accident leading to policyholder’s death with coverage of Rs. 2 lakhs

 It does not cover suicidal deaths, partial disability without irrecoverable loss and non-permanent disabilities. However, natural calamities and murders come under its coverage.

 Launched on May 08, 2015 by Prime Minister Narendra Modi, the Pradhan Mantri Suraksha Bima Yojana (PMSBY) involves numerous banks and insurance companies.

 Eligibility Criteria

 One needs to have a savings bank account linked with his/her Aadhaar card. In case you have more than one savings account, you’re eligible to join the scheme using only one bank account.

• Rs. 12 is to be paid yearly as a premium.
• You should have your Aadhaar card as the primary KYC document.

 The scheme’s validity is one year, after which it can be renewed during the year’s end.

 Online Registration for Pradhan Mantri Suraksha Bima Yojana 

• Approach either one of the health insurance companies or participating banks to opt for PMSBY. Most reputed banks let the subscribers take the policy through Internet banking.
• Log in to the Internet banking account and then enrol for the scheme.
• One can also send a message through a registered mobile number to the toll-free numbers of the insurance companies and banks.

 PMSBY Login 

• Login with your Internet banking credentials
• Click on ‘Insurance’ and select Pradhan Mantri Suraksha Bima Yojana
• Select the account which you will be using to pay the insurance premium and submit

 Documents Required for PMSBY

 ID proof (MGNREGA card/driving license/PAN card/Passport/EPIC or Electoral Photo Identity Card) and the Aadhaar card are required. The application form is to be filled with details including contact information, and nominee details. This can be done in any of the several languages – English, Hindi, Marathi, Bengali, Tamil, Telugu or Gujarati.

An Aadhaar card copy is required if your savings bank account is not linked with your Aadhaar.

 Activating PMSBY SMS Facility

• This involves visiting your bank’s website, clicking on the PMSBY section and entering your account number and the Captcha code.
• Then click to get the OTP and provide all requisite details.
• Finally, submit.

Activating PMSBY Internet Banking

• One can activate PMBSY Internet banking by logging in to his/her Internet bank account, selecting ‘Insurance’ and the account to be used to pay the premium.
• Then check the details and confirm.
• Finally, download the policy receipt.

 PMSBY Benefits

• The premium excludes the service tax which is charged at 14%.
• One can avail of the long-term option or choose to renew the scheme every year.
• You can also exit the scheme anytime and again sign up anytime in future.
• A deduction can be availed under Section 80 C for the premium paid.
• Also, the sum insured received up to Rs. 1 lakh is free of tax under Section 10(10D).

Coming to the PMBSY online renewal, one can use the auto-debit option to renew PMSBY. The insurance will be renewed once the premium is deducted. The insurance is in effect between 1 June and 31 May (one year), so renewal should be done before the end of May. A cancellation request needs to be filed with the relevant bank if you don’t want to renew the scheme. 

PMSBY: Claim Process

• The insured or the nominee (in case of death) should immediately inform the bank about the accident.
• Get the claim form from the bank/insurance company/website and fill the same.
• Submit it to the bank branch within 30 days of the accident.
• Also submit the original FIR, postmortem report, death certificate, or in case of disability – disability certificate issued by a civil surgeon, and discharge certificate.
• Within 30 days of submission, the bank verifies the account details and forwards the case to the insurance company. The insurer confirms the insured’s presence in the list of insured persons of the master policy.  
• The claim is processed within 30 days of receiving the required documents from the bank.
• The admissible claim is remitted to the insured’s or nominee’s account.
• The legal heir receives the death claim if the insured has not appointed a nominee. S/he needs to produce the succession certificate.

A Few Points to Note

• It may be noted that you can avail of the scheme’s benefits even if you have another insurance scheme.
• If your savings account has an insufficient balance or has been closed, the accidental insurance cover will be terminated.
• If you are an NRI with an eligible bank account in India with all other eligibility criteria met, you can avail of the scheme’s benefits. The claim is paid in Indian currency.
• Hospitalization expenses after the accident resulting in death or disablement are not reimbursed.
• Insurance benefit payment is done only after the insured’s death confirmation. In case s/he is missing and death confirmation is not there, the payment is done after a period of 7 years, after which the insured is presumed dead.