This is a social security scheme by the Indian government to provide insurance cover to one and all. Curious to know more, read on and get pleasantly surprised.
Insurance concept has existed in India for many decades but the reach and awareness have been very limited. Today, the Indian insurance market is flooded with domestic and overseas collaboration of insurance companies. But sadly, insurance has still not penetrated in rural parts of India. Even today people living in villages do not have any kind of insurance.
Pradhan Mantri Suraksha Bima Yojana was launched especially for people for whom insurance was out of reach due to a financial constraint. The scheme was officially launched by our current Prime Minister of India, Shri Narendra Modi on 9th May, 2015 in Kolkata for all Indian citizens. The aim of this government-backed insurance scheme is to increase the reach of insurance to more people in India.
What does this insurance offer?
Pradhan Mantri Suraksha Bima Yojana is a group accidental insurance policy. It will offer accidental death and disability cover. A sum assured of INR 2 lakhs is paid upon accidental death and total permanent disability and INR 1 lakh on permanent partial disability.
|Benefit description criteria||Sum assured (INR)|
|Death||2 lakhs||Permanent vision 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||2 lakhs|
|Permanent vision loss of sight in one eye or loss of use of one hand or one foot||1 lakhs|
Insurance Companies participating in Pradhan Mantri Suraksha Bima Yojana
- National Insurance
- United India Insurance
- ICICI Lombard
- Cholamandalam MS
- New India Assurance
- Universal Sompo
- Bajaj Allianz
- Reliance General Insurance
Suraksha Bima Yojana Eligibility
- The applicant should have completed 18 years of age and should not have crossed 70 years.
- The person should have a valid government Aadhar identity card to get registered under this scheme.
- Should have a savings bank account in their own name.
- The person should give permission to the bank for auto debit facility for premium payment.
Suraksha Bima Yojana Premium
The aim of the policy is to be affordable for every class of the society especially the low-income group. Keeping this factor in mind the premium has been kept to a bare minimum of INR 12 per annum per member. The premium will be auto-debited from the saving account linked to this scheme. The premium will be deducted on or before 1st June every year.
Suraksha Bima Yojana Premium allocation
- INR 10, per annum per member will be paid to the insurance company
- INR 1, Micro/Corporate agent commission on per member per annum
- INR 1, will be administrative expenses for per member per annum.
Suraksha Bima Yojana Multiple Coverage
- Even if the individual has multiple savings account, they are entitled to only one insurance scheme. This means per person will get only INR 2 lakh cover for the annual term period.
Suraksha Bima Yojana Coverage Term
- The scheme offers coverage from 1st June to 31st May and premium is auto debited in one instalment on or before 1st June. The new entrants who did not join in the earlier years will be able to join in the subsequent years while the scheme is still valid.
Suraksha Bima Yojana Termination of Cover
- If the policy holder reaches the age of 70 years.
- If the policy holder closes the savings a/c or if the premium is not paid due to insufficient balance in the account.
- In case a member enrols in the scheme for more than one account and even though the insurance premium is deducted the additional insurance scheme will be terminated and the premium money may get forfeited. It is advised to go through the policy document to get accustomed on the termination clause.
Suraksha Bima Yojana Claim Settlement - Documents needed for claim process
This scheme covers death and disability whether permanent or partial caused by an accident only. Hence, the same has to be confirmed by documentary evidence.
In case of accidents like road, rail and other similar incidents like drowning, death involving any crime, etc., such accidents should be reported to police. In case of incidents like snake bite, a fall from tree, etc. the cause should be supported by immediate hospital record.
The below mentioned documents need to be submitted at the bank where you are enrolled in this scheme.
- Properly filled claim form
- Death certificate
- Original FIR report or Post mortem report
- Discharge certificate
- Insurance certificate
The bank will send the documents to the nearest insurance office which shall decide to honour the claim basis their investigation. Once the insurance company is satisfied with the documents they will transfer the money in the account of the nominee and notify the bank.
Suraksha Bima Yojana is a very simple to understand policy for a layman. The cover at which the premium is being offered is very low to miss it. If you fall in the eligibility criteria it is a good add on coverage along with your existing coverage.