Pradhan Mantri Suraksha Bima Yojana

Pradhan Mantri Suraksha Bima Yojana (PMBSY) is an Accidental Insurance scheme and renewable year to year. Under this scheme, people between the ages of 18 to 70 years will get an accidental risk cover of Rs. 200000 by paying just a premium of Rs. 12 per year. If the life assured dies due to an accident his/her nominee will get the sum of Rs. 200000 and in case of 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, Rs. 200000 will be paid to the life assured and in case of total and irrecoverable loss of sight of one eye or loss of use of one hand or foot, the sum of Rs. 100000 will be paid to live assured (Under both the disability condition they must have arisen due to accident only).

The Government is likely to start large communication programs for the renewal of policies under the Pradhan Mantri Jeevan Jyoti Bima Yojana (PMJJBY) and Pradhan Mantri Suraksha Bima Yojana (PMSBY). The Finance Ministry is likely to soon ask life insurers and banks to ensure that policy renewals under both the schemes take place seamlessly, starting next month, through the auto-debit facility.

Gross enrolment to the PMJJBY has nearly doubled in the last two years to 5.33 crore. As many as 89,766 claims were paid in 2017-18 involving ₹1,795.32 crores. Similarly, gross enrolment in the PMSBY touched 13.48 crore in 2017-18. A total of 16,454 claims were paid involving ₹329.08 crores last fiscal. However, the insurance industry has been seeking a hike in premiums on the grounds that insurers have been making 15-20 percent losses while settling claims.

Launched by Prime Minister Narendra Modi in May 2015, the PMJJBY provides life insurance cover of ₹2 lakh at an annual premium of ₹330 while the PMSBY provides accident insurance cover of ₹2 lakh at just ₹12 per year to all bank account holders.

Additionally, it will also ask participating banks and insurers to advise and educate customers on the benefits of the two schemes. However, a significant change in the design of schemes — with higher premiums or a longer exclusion period, as has been sought by many in the insurance industry — is unlikely.

How to Apply? 

You can apply for the PMSBY scheme by filling out the application form in the bank or through the net banking facility. Here is a procedure to apply through the net banking facility. 

• Log in to Net Banking and click on the Insurance tab

• Select the scheme

• Select account for premium payment

• Policy cover amount, premium amount, and nominee details will be displayed

• Click confirm to activate the policy 

• Download the acknowledgment and unique reference number for future reference

The scheme will be a one-year cover, renewable from year to year, Accident Insurance Scheme offers accidental death and disability cover for death or disability on account of an accident. The scheme would be offered/administered through Public Sector General Insurance Companies (PSCs) and other General Insurance companies willing to offer the product on similar terms with necessary approvals and tie up with Banks for this purpose. Participating banks will be free to engage any such insurance company in implementing the scheme for their subscribers.

PMSBY is an Accident Insurance Scheme offering accidental death and disability cover for death or disability on account of an accident. It is a one-year cover, renewable from year to year. Dena bank has a tie-up with United India insurance for the said scheme.

offers life insurance cover of Rs. 2 lakh in case of death due to any reason to people in the age group of 18 to 50 years having a bank / Post office account, who give their consent to join/enable auto-debit of premium of Rs. 330 per annum. The scheme is being offered by the Life Insurance Corporation of India and all other life insurers who are offering the product on similar terms with necessary approvals and tied up with Banks and Post Offices for this purpose.

Termination of benefits cover :

• 1) On attaining the age of 70 years  or the age nearest birthday
• 2) At the time of renewal in subsequent years, due to insufficiency of balance to keep the insurance in force the account gets closed.
• 3) In case a subscriber is covered by more than one account and the premium is paid by the subscriber intentionally, insurance cover will be restricted to one only and the premium shall be liable to be forfeited.
• 4) If the insurance cover is ceased due to any technical reasons such as the insufficient balance on the due date or due to any administrative issues, the same can be reinstated on receipt of the full annual premium, subject to conditions that are to be issued in future. During this period, the risk cover will be” suspended” and reinstatement of risk cover will be at the sole discretion of the Insurance Company.

Suraksha Bima Yojana Features

Here are some of the features of the prestigious PMSBY:

• The scheme would be renewed every year with a single year cover at a time
• These companies should be willing to offer a scheme similar to the one mentioned under PMSBY and should have adequate approvals and tie-ups for this purpose
• Banks would have a free hand in engaging any insurance company that intends to offer the scheme