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HEALTH INSURANCE

Pradhan Mantri Suraksha Bima Yojana (PMSBY)

Inderpal Ahluwalia 03 November 2017
4.2 (16 votes)

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.

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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 (PMSBY) 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 (PMSBY) 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 criteriaSum assured (INR)
Death2 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 foot2 lakhs
Permanent vision loss of sight in one eye or loss of use of one hand or one foot1 lakhs

Insurance Companies participating in Pradhan Mantri Suraksha Bima Yojana (PMSBY)

  • National Insurance
  • United India Insurance
  • ICICI Lombard
  • Cholamandalam MS
  • New India Assurance
  • Universal Sompo
  • Bajaj Allianz
  • Reliance General Insurance

Pradhan Mantri Suraksha Bima Yojana Eligibility (PMSBY)

  • 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.

Pradhan Mantri Suraksha Bima Yojana Premium (PMSBY)

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.

Pradhan Mantri Suraksha Bima Yojana Premium allocation (PMSBY)

  • 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.

Pradhan Mantri Suraksha Bima Yojana Multiple Coverage (PMSBY)

  • 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.

Pradhan Mantri Suraksha Bima Yojana Coverage Term (PMSBY)

  • 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.

Pradhan Mantri Suraksha Bima Yojana Termination of Cover (PMSBY)

  • 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.

Pradhan Mantri Suraksha Bima Yojana Claim Settlement - Documents needed for claim process (PMSBY)

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.

Pradhan Mantri Suraksha Bima Yojana (PMSBY) 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.

FAQ's On Pradhan Mantri Suraksha Bima Yojana (PMSBY)

What is the role of SBI in Pradhan Mantri Suraksha Bima Yojana?

The sole purpose of the social security scheme Pradhan Mantri Suraksha Bima Yojana launched by the government of India is to provide accident insurance to the citizens of the country. It is an accident insurance scheme which offers a one-year accidental death and disability cover. On accidental death and permanent total disability, the nominee will receive Rs. 2 lakh and on permanent partial disability the enrolled person will receive Rs. 1 lakh.

What is the nature of the Pradhan Mantri Suraksha Bima Yojana scheme?

The following are the benefits offered by the Pradhan Mantri Suraksha Bima Yojana scheme:

BenefitsSum Assured (in Rs.)
Accidental DeathRs. 2 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 hand or footRs. 2 lakh
Total and irrecoverable loss of sight of one eye or loss of use of one hand or footRs. 1 lakh

What is the minimum age requirement to subscribe to Pradhan Mantri Suraksha Bima Yojana?

The minimum age required to be eligible for Pradhan Mantri Suraksha Bima Yojana scheme is 18 years.

What is the maximum age requirement to subscribe to Pradhan Mantri Suraksha Bima Yojana?

The maximum age required to be eligible for Pradhan Mantri Suraksha Bima Yojana scheme is 70 years.

Will the subscriber receive any benefit if he or she suffers total disability due to an accident?

Yes, the subscriber will be eligible for a benefit of Rs. 2 lakh in case of total disability due to an accident. Total permanent disability implies 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 hand or foot.

Will the subscriber receive any benefit if he or she suffers partial disability due to an accident?

Yes, permanent partial disability attracts a benefit of Rs. 1 lakh. Permanent partial disability refers to total and irrecoverable loss of sight of one eye or loss of use of one hand or foot.

How is the premium apportioned? The total premium of Rs. 12 per annum is apportioned as under:

  • Insurance Premium to Insurance Company: Rs.10 p.a. per member
  • Reimbursement of Expenses to BC/Micro/Corporate/Agent: Rs. 1 p.a. per member
  • Reimbursement of Administrative expenses to participating Bank: Rs. 1 p.a. per member.

The proposed date of commencement of the scheme will be 1st June 2015.The next Annual renewal date will be each successive 1st of June in subsequent years. The scheme is liable to be discontinued prior to commencement of a new future renewal date if circumstances so require.

How many participating banks are registered under Pradhan Mantri Suraksha Bima Yojana scheme?

As on April 2019, Pradhan Mantri Suraksha Bima Yojana has 28 participating banks.

How many insurance companies are registered under Pradhan Mantri Suraksha Bima Yojana?

There are 8 registered insurance companies under the Pradhan Mantri Suraksha Bima Yojana, as on April 2019.

Who is the administrator of Pradhan Mantri Suraksha Bima Yojana?

Pradhan Mantri Suraksha Bima Yojana is administered by the participating banks and insurance companies that are registered under the scheme.

What is the enrolment period?

The enrolment period applicable for Pradhan Mantri Suraksha Bima Yojana is 1st June of a financial year to 31st May of the subsequent financial year.

Who is the master policy holder of Pradhan Mantri Suraksha Bima Yojana?

The Participating Bank is referred to as the Master Policy Holder on behalf of the participating subscribers. A simple and subscriber friendly administration and claim settlement process is finalized by the respective general insurance company in consultation with the participating banks.

Can a subscriber enrol for the scheme in two or more banks?

No, a subscriber cannot enrol for the scheme in more than one bank or insurance company. If he/ she has enrolled for Pradhan Mantri Suraksha Bima Yojana through more than one participating bank or insurer, the additional application will be terminated.

Will I be eligible for the benefits of Pradhan Mantri Suraksha Bima Yojana along with other insurance schemes?

Yes, you can avail Pradhan Mantri Suraksha Bima Yojana along with other existing accidental insurance schemes.

How do insufficient bank account balance and a closed account affect a Pradhan Mantri Suraksha Bima Yojana account?

In case of insufficient balance in the registered bank savings account or a closed account, the concerned Pradhan Mantri Suraksha Bima Yojana will stand terminated.

What are the reasons that lead to the termination of Pradhan Mantri Suraksha Bima Yojana?

Here are the 2 instances that cause the termination of the Pradhan Mantri Suraksha Bima Yojana:

  • Insufficient balance in the registered bank savings account or a closed account
  • On reaching the age of 70 years

Who can apply for Pradhan Mantri Suraksha Bima Yojana?

Any individual between the ages of 18 years and 70 years can apply for Pradhan Mantri Suraksha Bima Yojana through their bank who is a participant under this scheme.

Does Pradhan Mantri Suraksha Bima Yojana cover death or disability that results from natural calamities?

Yes, Pradhan Mantri Suraksha Bima Yojana covers death or disabilities arising due to natural calamities.

Does Pradhan Mantri Suraksha Bima Yojana cover death due to suicide or murder?

No, Pradhan Mantri Suraksha Bima Yojana does not cover death caused due to suicide, but it covers death due to murder.

If the savings bank account is a joint account, can all its holders join the Pradhan Mantri Suraksha Bima Yojana scheme?

Yes, all the holders of a joint savings bank account can enrol for the Pradhan Mantri Suraksha Bima Yojana on meeting the required eligibility criteria.

Can a NRI be covered under Pradhan Mantri Suraksha Bima Yojana?

A NRI who meets the eligibility criteria for opening a Pradhan Mantri Suraksha Bima Yojana, and has a bank account, is eligible for being covered under the scheme.

How many people have subscribed for PMSBY?

Pradhan Mantri Suraksha Bima Yojana has 13.41Cr subscribers, as per April 2018 data.

How to cancel Pradhan Mantri Suraksha Bima Yojana?

A Pradhan Mantri Suraksha Bima Yojana scheme can be terminated by cancelling the auto-debit facility of premium payment through the concerned participating bank. The scheme will stand cancelled once the annual premium is not paid.

How to download Pradhan Mantri Suraksha Bima Yojana certificate?

Get in touch with the bank that you have registered with your Pradhan Mantri Suraksha Bima Yojana account for assistance regarding downloading your Pradhan Mantri Suraksha Bima Yojana certificate.

How can I track the status of my Pradhan Mantri Suraksha Bima Yojana account?

Follow these simple steps to track the application status of your Pradhan Mantri Suraksha Bima Yojana account:

  • Login to the website or internet banking app of your bank that you have registered for the scheme.
  • Mention your bank account number and Pradhan Mantri Suraksha Bima Yojana application number.
  • Select the ‘Submit’ button to track the status.

How to apply for Pradhan Mantri Suraksha Bima Yojana online?

For the online application of Pradhan Mantri Suraksha Bima Yojana, you need to login to the internet banking app of your bank, and follow the instructions

Click Herer To Download: Pradhan Mantri Suraksha Bima Yojana Form (PMSBY FORM)

Click Herer To Download: Pradhan Mantri Suraksha Bima Yojana Certificate Download (PMSBY Policy Certificate)

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