Pradhan Mantri Suraksha Bima Yojana
Road accidents are one of the leading causes of death, disabilities and hospitalization in India. As per the Ministry of Road Transport & Highways, India ranks first in the number of road accident deaths across the 199 countries and accounts for almost 11% of the accident-related deaths in the World.
If we go by the Road Accident Reports of 2019, a total number of 449,002 accidents took place in the country during the calendar year 2019leading to 151,113 deaths and 451,361 injuries.
**Ministry of Road Transport & Highways
Considering this situation, most people opt for Accidental Insurance. However, the poor do not have the privilege of buying Accidental Insurance due to their high premiums.
To help the people in securing their family's needs, the government has announced the social security scheme Pradhan Mantri Suraksha Bima Yojana (PMSBY).
Launched in 2015, the Pradhan Mantri Suraksha Bima Yojana is a government-backed accident insurance scheme that covers accidental death, permanent disability, and partial disablement.
The Scheme is available to those people who give their consent to join/enable auto-debit on or before 31st May for the coverage period 1st June to 31st May on an annual renewal basis. Let's read more about the plan:
| Eligible Age | 18 years-70 years |
| Annual Premium | Rs. 12 |
| Maximum Sum Assured | Rs. 2 Lakhs |
| Renewability | Annual Renewal |
Key Features of Pradhan Mantri Suraksha Bima Yojana
Affordable
It is a low priced policy that helps the less-privileged people to ensure their and their family's financial security if they die or get injured in an accident.
Hassle-free
The policy comes with an Auto-debit option, under which the premium is debited every year. Also, the plan offers the convenience of easy entry & exit.
Tax Benefits
One can avail of Tax Benefits received up to Rs.1 lakh under Section 10(10D) of the IT Act, 1961.
What are the Benefits of the Scheme?
The benefits of this scheme are as follows:
- The claimant is entitled to avail Rs. 2 Lakhs on the death caused by accidents
- The claimant is entitled to avail Rs. 2 Lakhs for 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.
- In case of Total and irrecoverable loss of sight of one eye or loss of use of one hand or foot, the claimant can avail the benefit of Rs. 1 Lakhs
List of Banks Participating in Pradhan Mantri Suraksha Bima Yojana Scheme:
| Allahabad Bank | Axis Bank | Bank of India | Bank of Maharashtra |
| Bharatiya Mahila Bank | Canara Bank | Central Bank | Corporation Bank |
| Dena Bank | Federal Bank | HDFC Bank | ICICI Bank |
| IDBI Bank | IndusInd Bank | Kerala Gramin Bank | Kotak Bank |
| Oriental Bank of Commerce | Punjab and Sind Bank | Punjab National Bank | South Indian Bank |
| State Bank of Hyderabad | State Bank of India | State Bank of Travancore | Syndicate Bank |
| UCO Bank | Union Bank of India | United Bank of India | Vijaya Bank |
List of Insurance Companies Participating in Pradhan Mantri Suraksha Bima Yojana
| Reliance General Insurance | Bajaj Allianz General Insurance | Kotak Mahindra General Insurance Co. Ltd. |
| Universal Sompo General Insurance Co. Ltd. | Cholamandalam MS General Insurance Co. Ltd. | The Oriental Insurance Co. Ltd. |
| United India Insurance Co. Ltd. | National Insurance Co. Ltd. | TATA AIG General Insurance Co. Ltd. |
| The New India Assurance Co. Ltd. | Future Generali India Insurance Co. Ltd |
Term Insurance Companies
Check and compare plans from 21 IRDAI-approved term insurance providers before purchasing a term plan.
How Can I Apply for Pradhan Mantri Suraksha Bima Yojana?
Follow the below-mentioned steps to apply for the scheme:
- Download the PMSBY form from the government's Jan Suraksha website. For the user's convenience, it is available in multiple languages.
- The registration process can be initiated via the respective internet banking facility or by sending a message on the onboarding organization's toll-free number.
Claim Procedure of Pradhan Mantri Suraksha Bima Yojana
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Submission of Claim Form
Immediately after the occurrence of an accident, the beneficiary needs to submit the duly completed form to the concerned bank branch/post office within 30 days.
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Submission of Documents
The following documents needed to be submitted:
- Proof of permanent disability due to accident or death due to accident
- Aadhaar and PAN number of the insured member and claimant
- KYC document in respect of the nominee/appointee/claimant
- First two pages of passbook, or bank/post office account statement showing account details, or cancelled cheque of the account of the nominee/appointee/claimant
- Proof of death of nominee in case of nominee predeceases the insured member
- Proof of being legal heir, in case the claimant is other than the Insured member/Nominee/Appointee
- Advance receipt for discharge of claim, duly filled in and signed
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Verification of Documents
The bank/ post office will then check and verify if the claim is for disability or death. Also, the account of the insured member will be checked to confirm auto-debit particulars and the account details, nomination, debiting of premium/remittance etc.
The bank/post office, after checking the KYC documents of the claimant, will forward the claim documents electronically to the designated email id/app of the partner Insurer within seven days of the submission of the claim.
The Term Insurance Company will verify if that premium has been remitted for the Insured and whether the Insured is included in the list of insured persons in the master policy.
Once verified, claims will be processed within seven days of their receipt from the bank/post office. The admissible claim amount will be remitted to the bank/post office account of the insured or the claimant, as the case may be.
For a better picture of how PMSBY settles claims, take a look at the below graph:
Claim Settlement Statistics of Pradhan Mantri Suraksha Bima Yojana
**Department of Financial Services, Ministry of Finance, Government of India
Termination of Pradhan Mantri Suraksha Bima Yojana
The accident insurance cover will be terminated under the following circumstances:
- Once the policyholder attains the age of 70 years
- The policy is subject to termination if the policyholder decides to close their savings account with the participating bank or is unable to keep the sufficient balance in their savings account to pay the premium.
- The policy will terminate if there are multiple accounts and the insurance premium amount is debited multiple times accidentally. In such a case the premium will be deducted and debited from one account, and the extra premium will be forfeited.
