Pradhan Mantri Suraksha Bima Yojna (PMSBY) : A to Z
Pradhan Mantri Suraksha Bima Yojna (PMSBY) scheme was launched by Prime Minister on May 9, 2015 as part of improving social security scheme. Another scheme Pradhan Mantri Jeevan Jyoti Bima Yojna (PMJJBY) was also launched along with PMSBY. Both schemes provide low cost insurance to public at nominal premium. PMJJBY provides life insurance coverage of Rs. 2 Lakh for death due to any reason at an annual premium of Rs. 330/- whereas PMSBY provides accidental death and disability cover of Rs. 2 Lakh at an annual premium of Rs. 12/-.
Pradhan Mantri Suraksha Bima Yojna (PMSBY) : Features
1. PMJJY offers one year cover, renewable from year to year.
2. Accident Insurance Scheme offering accidental death and disability cover for death or disability on account of an accident
3. Insurance coverage:
a. Death due to accident – Rs. 2 Lakh
b. Total and irrecoverable loss of both eyes or use of both hands/ feet or loss of sight of one eye and loss of use of a hand / foot -Rs. 2 Lakh
c. Total and irrecoverable loss of sight of one eye or loss of use of one hand or foot- Rs. 1 Lakh
4. An individual maintaining savings Bank account in any participating bank can join the scheme. Almost all banks extend the scheme to their customers.
5. The scheme is administered through The New India Assurance Co Ltd / other general insurance company
6. Master policy will be in the name of the bank which enrolls the person.
7. Insurance coverage from 1st June to 31st May of every year. Renewal in every year in the month of May.
8. An individual can join after 1st June too, but initial block of coverage will expire on ensuing May 31. Premium for the full year has to be remitted.
9. Those who exited the scheme too can re-join later on subject to fulfillment of other eligibility criteria and terms as may be revised on the basis of past experience.
10. Premium fixed is Rs.12/- per annum per individual, which will be deducted automatically from Savings Bank (SB) account in the month of May every year.
11. Risk cover commences after 45 days from enrolment. But this period not applicable for death due to accidents.
12. Insurer can calim 80 C benefit on the amount of premium paid.
Pradhan Mantri Suraksha Bima Yojna (PMSBY) Eligibility criteria
1. All KYC complied savings bank (SB) account holders in any participating bank can enroll.
2. Aadhaar number is now mandatory for opening of bank accounts.
3. Age of account holder should be between 18( completed) -70 ( age nearer birthday) for entry into the scheme
4. Account holder should give consent to join the scheme and auto debit for future premiums. Once agreed for annual auto debit, collection of premium is responsibility of the bank.
5. An individual eligible to subscribe only one PMSBY policy, even if maintains multiple accounts with different banks.
6. If the savings bank (SB) account is in joint names, all account holders can join individually in the scheme provided each one satisfies the eligibility criteria.
7. Auto debit mandate to collect the premium every year to be given to the bank at the time of enrolment. Customer has to make available premium amount in the account every year at the time of renewal. Normally debit happens in the month of May.
8. Application form and automatic debit mandate available with respective bank branches.
Click here for PMSBY enrolment form ENGLISH HINDI
Pradhan Mantri Suraksha Bima Yojna (PMSBY) – Policy lapse conditions
1. On attaining age 70 years (age near birthday) subject to annual renewal up to that date.
2. Closure of account with the Bank .
3. Non availability of balance in the account to deduct premium. If insurance cover is ceased due to reasons such as insufficient balance, administrative issues etc, insurance can be reinstated with payment of full premium and and with terms applicable at the time of reinstatement.
4. If multiple applications are received at the administering insurance company against same individual, from same bank or different bank for any reason, insurance cover will be restricted to Rs. 2 Lakh and the excess premium shall be liable to be forfeited.
5. In case of non-remittance of premium collected by banks to the insurance company, latest by 30th June of respective year.
Pradhan Mantri Suraksha Bima Yojna (PMSBY) – Appropriation of Premium:
The annual premium per member per annum fixed is Rs. 330. The same is appropriated every year as shown below:
1. Insurance Premium to LIC / insurance company : Rs.10/-
2. Reimbursement of Expenses to BC/Micro/Corporate/Agent : Rs.1/-
3. Reimbursement of Administrative expenses to participating Bank: Rs.1/-
Pradhan Mantri Suraksha Bima Yojna (PMSBY) – Claim process
In order to claim the sum insured in the case of an insured, the following documents have to be submitted to the branch of the bank through which enrolment was made. The branch will make arrangements for onward submission to LIC/ other insurance company for claim processing. The process is mentioned below:
1. Pradhan Mantri Suraksha Bima Yojna (PMSBY) Original PMSBY Claim Form signed by nominee.
2. Original PMSBY Discharge Receipt duly filled in and signed by nominee signed across stamp for required value affixed.
3. Copy of proof of date of birth of the nominee
4. Copy of proof of date of birth of the insured
5. Copy of FIR/ Panchnama
6. Copy of Post Mortem report
7. Copy of Death Certificate in English, Hindi or other language ( Translation may be required for death certificates in other languae) or in case of In Case of Disability Original Disability Certificate issued by a Civil Surgeon.
8. Photocopy of cancelled cheque of the nominee/ appointee (if available). If the nominee is a minor, claim form shall be filled by the appointee on behalf of the minor.
Originals of the above documents also shall be produced before the branches for verification and attestation. The branch will then forward the same along with copy of enrolment form and central KYC form to their Head office/ Insurance company for processing the claim.
For down loading the claim settlement form in pdf, click here ENGLISH HINDI
