Have you enrolled in the PMSBY Policy? Get all the details here

The Pradhan Mantri Suraksha Bima Yojana:

The Pradhan Mantri Suraksha Bima Yojana (PMSBY) is an accident insurance plan launched by the Government of India, starting from June 1 to 31 May (yearly renewable). PMSBY introduced by Prime Minister Narendra Modi in Kolkata, on May 9, 2015. This scheme provides financial protection in case of accidental death or disability. It is managed by Public Sector General Insurance Companies (PSGICs) and other approved insurance companies, making it easy for many people to access.

Details of the Scheme

Who Can Join?

PMSBY is for all individual bank or post office account holders between 18 and 70 years old. You can only join through one bank or post office account, even if you have multiple accounts. Aadhar is needed as the main identification document.

How to Join and When?

To join, you need to give consent for the annual premium to be automatically deducted from your bank or post office account. You must submit the required form by May 31 each year. If you miss this date, you can still join later by paying the full premium. If you leave the scheme, you can rejoin in future years.

Pradhan Mantri Suraksha Bima Yojana

What Are the Benefits?

The benefits under PMSBY are as follows:

1) Death: Rs. 2 Lakh

2) Total loss of both eyes, both hands, both feet, or one eye and one hand or foot: Rs. 2 Lakh

3) Total loss of one eye or one hand or foot: Rs. 1 Lakh

How Much Does It Cost?

The annual premium for PMSBY is Rs. 20 per member, automatically deducted from your account. This amount may be reviewed each year based on the claims received.

Who is Eligible?

You are eligible if you:

1.  Have a bank or post office account.

2.  Are between 18 and 70 years old.

3.  Give consent for the premium auto-debit.

When Does the Cover End?

Your insurance cover ends if:

a)  You turn 70 years old.

b)  Your bank or post office account is closed or has insufficient funds.

c)  You are covered by more than one account (only one cover is valid).

d)  The premium isn't paid due to technical issues (cover can be reinstated upon payment).

How is the Scheme Managed?

The scheme is managed by the insurance companies, with banks and post offices handling premium deductions and maintaining records. They will also help in the claims process if needed.

Benefits in India

Since it started, PMSBY has helped millions of families in India by providing financial support after accidents. The low cost of the premium makes it accessible to many people, especially those with lower incomes.

Real-Life Example: Helping Rural Families

Take Rajesh, a 35-year-old farmer from Uttar Pradesh. He joined PMSBY through his local bank. Sadly, Rajesh died in a road accident. His family received Rs. 2 Lakh from the scheme, which helped them cover immediate expenses and stabilize their finances. Stories like Rajesh's show how PMSBY can be a lifeline in difficult times.

Wide Coverage and Ease of Access

PMSBY’s wide age eligibility and easy enrollment process mean that many people across India can benefit from the scheme. The involvement of both public and private banks and post offices helps ensure that the scheme reaches as many people as possible.

 

The Impact of Pradhan Mantri Suraksha Bima Yojana on India

The Pradhan Mantri Suraksha Bima Yojana (PMSBY) is an accident insurance plan that started on June 1, 2022. It was launched by the Government of India to provide affordable insurance to people, especially those from poorer backgrounds. Let's take a look at the changes and benefits this scheme has brought to India.

Financial Security for the Poor

More People Covered by Insurance

Before PMSBY, many people in India did not have any insurance. With a premium of just Rs. 20 per year, PMSBY has made it possible for millions to get insurance coverage. This is especially helpful for families who might struggle financially if an accident happens.

Quick Financial Help

The benefits of PMSBY are:

a)  Rs. 2 Lakh for accidental death

b)  Rs. 2 Lakh for losing both eyes, both hands, both feet, or one eye and one hand or foot

c)  Rs. 1 Lakh for losing one eye or one hand or foot

This money helps families immediately after an accident, covering medical expenses and other urgent needs.

Boost to the Insurance Sector

More Awareness About Insurance

PMSBY has taught many people about the importance of insurance. More people now understand that having insurance is a good way to protect their families financially.

Strengthening Insurance Companies

Public Sector General Insurance Companies (PSGICs) and other approved insurers run PMSBY. The large number of new policies has helped these companies grow stronger and improve their services.

Social Impact

Empowering Women

PMSBY has helped empower women by providing financial security. Many women, who manage their family's finances, find this scheme valuable. It encourages more women to open bank accounts and participate in financial activities.

Promoting Financial Inclusion

PMSBY has encouraged more people to open bank accounts. With Aadhar as the primary identification, even those without traditional ID can join the scheme. This has broader benefits, like increased savings and better access to financial services.

Challenges and Areas for Improvement

Improving the Claim Process

While PMSBY has been successful, the process to get claims can be slow and difficult. It's important to make this process faster and easier so people get their money quickly.

Increasing Awareness

Despite its success, many people still don't know about PMSBY, especially in remote areas. Continued promotion of the scheme is needed to ensure everyone who can benefit from it knows how to join.

 

Frequently Asked Questions (FAQs)

1. Who can join the PMSBY scheme?

Anyone with a bank or post office account who is between 18 and 70 years old can join.

2. How do I enroll in the PMSBY scheme?

Submit the enrollment form and give consent for auto-debit at your bank or post office. Aadhar is needed as your ID.

3. What is the annual cost of PMSBY?

The annual premium is Rs. 20, automatically deducted from your account.

4. What benefits does PMSBY offer?

a) Rs. 2 Lakh for accidental death.

b) Rs. 2 Lakh for total loss of both eyes, both hands, both feet, or one eye and one hand or foot.

c) Rs. 1 Lakh for total loss of one eye or one hand or foot.

5. How long does the coverage last?

The coverage lasts for one year, from June 1 to May 31, and can be renewed annually.

6. Can I have multiple PMSBY policies?

No, you can only have one policy. If multiple premiums are paid by mistake, only one cover is valid, and the extra premiums are forfeited.

7. What if there is not enough money in my account for the premium?

If there isn’t enough money, the cover will stop. Once you pay the full premium, you can restart it.

8. How are claims processed?

In case of a claim, the insurance company may ask for the enrollment form and auto-debit authorization. Your bank or post office will help with the claim process.

9. Can I rejoin if I leave the scheme?

Yes, you can rejoin in future years by following the same enrollment process.

10. How does PMSBY benefit people?

PMSBY provides affordable insurance, offering financial support in case of accidents, especially for people with lower incomes.

Reference links: 

Goverment official link: Pradhan Mantri Suraksha Bima Yojana

Download Form : PMSBY Form

The Pradhan Mantri Suraksha Bima Yojana is a crucial initiative for providing financial security to individuals and families in India. With its affordable premium and significant benefits, PMSBY ensures that people have the necessary support during difficult times. As more people become aware of and join the scheme, its positive impact will continue to grow.

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Sachin Chopade
I am a Finance and Tax Analyst, Content Creator, sharing valuable articles and calculators related to Finance, Accounting and Banking industry.