Pradhan Mantri Suraksha Bima Yojana - Accident Insurance

The Pradhan Mantri Suraksha Bima Yojana is a government-backed accident insurance scheme that covers accidental death, permanent disability, and partial disablement. Individuals between 18 years and 70 years are eligible to apply for this scheme.
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Pradhan Mantri Suraksha Bima Yojana is Indian Government’s accidental insurance cover which was announced in the 2015 Budget. This scheme was launched to provide personal accident insurance to the high risk category such as mechanics, labourers, truck drivers which involves a lot of travelling. It is also one of the cheapest insurance cover. The scheme also covers both partial and permanent disability cover.

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This scheme is available to those between the ages of 18 and 70 years and they must have a bank account. The annual premium of the scheme is Rs.12 excluding the service tax. The premium amount is automatically debited from the bank account of the scheme holder. Rs.2 lakh is paid to the nominee if the subscriber dies in an accident or if he is fully disabled. If the subscriber meets with an accident and suffers partial permanent disability, then Rs.1 lakh is paid.

Pradhan Mantri Suraksha Bima Yojana scheme involves numerous banks and insurance companies. The participating banks are as follows:

  • 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

Participating Insurance companies are as follows:

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

Features of Pradhan Mantri Suraksha Bima Yojana:

The features of this scheme are as follows:

  • The accidental death insurance cover renewable each year.
  • The annual premium to be paid is Rs.12. This premium is excluding the service tax which is charged at 14%.
  • Up to Rs.2 lakh cover is payable to the nominee of the subscriber if he or she dies in an accident or is totally disabled due to the accident.
  • The premium is auto debited from the bank account of the subscriber.
  • The subscriber can avail the long term option or renew the scheme every year.
  • The subscriber can exit the scheme at any time and can sign-up at any time in the future.

Benefits of Pradhan Mantri Suraksha Bima Yojana:

The benefits of this scheme are as follows:

If accident causes the subscriber’s death Rs.2 lakh is paid to the nominee.
If an accident leads to total and irrecoverable loss of use if both hands or feet, loss of eyes or loss of sight in one year and loss of use of a hand or foot Rs.2 lakh is paid.
If accident causes irrecoverable and total loss of sight of one eye and loss of use of one hand or foot Rs.1 lakh is paid.

The subscriber can also avail deduction under Section 80C for the premium paid.

The sum insured received up to Rs.1 lakh is tax free under Section 10(10D).

Eligibility Criteria of Pradhan Mantri Suraksha Bima Yojana:

The eligibility criteria for subscribing for Pradhan Mantri Suraksha Bima Yojana is as follows:

  • The minimum age requirement is 18 years.
  • The maximum age requirement is 70 years.
  • Those having a savings bank account and falling under the age group of 18 – 70 years are eligible to subscribe to the policy.
  • The bank account must be linked with the Aadhaar card.
  • If the bank account is not linked with the Aadhaar card, then the Aadhaar card copy must be attached with the application form.
  • If the individual has more than one savings account, he or she is only eligible to join the scheme through a single bank account.
  • Premium to be paid is Rs.12 yearly.
  • The premium amount is auto debited from the insured’s bank account.
  • The scheme is valid for a year and it can be renewed at the end of the year.
  • The primary KYC document required is the applicant’s Aadhaar card.

Documents Required for Pradhan Mantri Suraksha Bima Yojana:

The Pradhan Mantri Suraksha Bima Yojana application form is to be duly filled. The details to be filled are:

  • Proof Id
  • Aadhaar card
  • Contact information
  • Nominee details
  • Application form (English, Hindi, Bengali, Marathi, Oriya, Telugu, Tamil or Gujarati).

The only document that has to be submitted along with the application form is the Aadhaar Card copy if the Aadhaar is not linked to your savings bank account.

How to Enroll for Pradhan Mantri Suraksha Bima Yojana?

The subscriber can approach either one of the participating bank or insurance companies to subscribe to Pradhan Mantri Suraksha Bima Yojana.

Most of the reputed banks allow the subscribers to take the policy through internet banking. The subscriber will have to log in to the Internet banking account and enroll for the scheme.

Subscriber can also send a message through their registered mobile number to the toll free numbers of the banks and the insurance companies.

The toll free number for different state and the names of the convenor banks are as follows:

State Convenor Bank Toll Free number
West Bengal and Tripura United Bank of India 1800-345-3343
Uttarakhand State Bank of India 1800-180-4167
Uttar Pradesh Bank of Baroda 1800-102-4455 or 1800-223-344
Tamil Nadu Indian Overseas Bank 1800-425-4415
Telangana State Bank of Hyderabad 1800-425-8933
Sikkim State Bank of India 1800-345-3256
Rajasthan Bank of Baroda 1800-180-6546
Punjab Punjab National Bank 1800-180-1111
Puducherry Indian Bank 1800-4250-0000
Odisha UCO Bank 1800-345-6551
Nagaland State Bank of India 1800-345-3708
Mizoram State Bank of India 1800-345-3660
Meghalaya State Bank of India 1800-345-3658
Manipur State Bank of India 1800-345-3858
Maharashtra Bank of Maharashtra 1800-102-2636
Madhya Pradesh Central Bank of India 1800-233-4035
Lakshadweep Syndicate Bank 1800-4259-7777
Kerala Canara Bank 1800-425-11222
Karnataka Syndicate Bank 1800-4259-7777
Jharkhand Bank of India 1800-345-6576
Himachal Pradesh UCO Bank 1800-180-8053
Haryana Punjab National Bank 1800-180-1111
Gujarat Dena Bank 1800-255-885
Goa State Bank of India 1800-2333-202
Delhi Oriental Bank of Commerce 1800-1800-124
Daman and Diu Dena Bank 1800-225-885
Dadra and Nagar Haveli Dena Bank 1800-225-885
Chhattisgarh State Bank of India 1800-233-4358
Chandigarh Punjab National Bank 1800-180-1111
Bihar State Bank of India 1800-345-6195
Assam State Bank of India 1800-345-3756
Arunachal Pradesh State Bank of India 1800-345-3616
Andhra Pradesh Andhra Bank 1800-425-8525
Andaman and Nicobar Island State Bank of India 1800-345-4545

The convenor bank is not the only bank in the state that allows you to subscribe to the PMSBY scheme, you can subscribe through the various participating banks.

Conditions for Termination of Pradhan Mantri Suraksha Bima Yojana:

The accidental cover will be terminated on following conditions and no benefits will be payable:

  • When the subscriber attains 70 years.
  • If the savings bank account is closed due to non-maintenance of the minimum balance that is required to keep the insurance in force.
  • If the subscriber is covered through more than one account, the insurance cover will be restricted to one account and the extra premium paid will be forfeited.
  • If the insurance cover is ceased due to technical reasons or due to insufficient balance, the same can be reinstated after the premium is paid in full. The risk cover for that period will be suspended and the risk cover is reinstated at the sole discretion of the insurance company.
  • The participating banks will have to deduct the premium in the month when the auto debit option is given and that amount will be remitted to the insurance company in that same month.

Claim Process of PMSBY:

The following is the procedure to claim for the benefits under PMSBY:

  • The insured or the nominee (in the event of death) must immediately inform the bank about the occurrence of the accident.
  • Claim form must be obtained from the bank or designated insurance companies or via the website. The form is to be duly filled.
  • The completed claim form is to be submitted to the bank branch within 30 days from the day of occurrence of the accident.
  • The claim form is to be supported by original FIR, post mortem report, death certificate or in case of disability, disability certificate that is issued by a Civil surgeon. Discharge certificate should also be enclosed.
  • The bank will verify the account details and then forward the case to the insurance company within 30 days of the submission of the claim.
  • The insurer will then confirm that the insured is in the list of the insured persons in the master policy.
  • The claim will be processed within 30 days of receiving the documents from the bank.
  • The admissible claim will be then remitted to the nominee’s or the insured’s account.
  • If the insured has not appointed a nominee, then the death claim will be paid to the legal heir. The legal heir must produce the succession certificate.
  • The maximum time that is allowed for the bank to finish the claim procedure is 30 days.

Following information is to be furnished in the claim process form:

  • Name of the insured
  • Full address of the insured
  • Name and address of the bank branch
  • Savings bank account number
  • Contact number of the insured, i.e. mobile number, phone number, email address and Aadhaar number
  • Details of nominee, i.e. name, mobile or phone number, email address, bank account for electronic transfer and Aadhaar number.
  • Details of accident, i.e. the day, date and time of occurrence, place of occurrence, nature of the accident and cause of death or the details of injury
  • Name and address of the hospital or the attending doctor along with the contact details
  • Time and date of when the medical officer of the company can visit the insured.
  • Details of the documents that have been submitted

The nominee or claimant will have to sign the declaration and mention the policy number and claim number along with the date. The authorised bank official will further review the form and sign it and pass it on to the insurance company.

The Pradhan Mantri Suraksha Bima Yojana scheme aims to bring the insurance coverage to the uninsured sector. The scheme also serves the goal of financial inclusion by penetrating the insurance to the weaker sections of the society and thus ensuring financial security. The benefits received up to Rs.1 lakh is tax free under Section 10(10D) of the IT Act, 1961.

Pradhan Mantri Suraksha Bima Yojana Vs Pradhan Mantri Jeevan Jyoti Bima Yojana:

Pradhan Mantri Jeevan Jyoti Bima Yojana (PMJJBY) is a life insurance scheme offering Rs.2 lakh renewable life insurance cover at a premium of Rs.330 per annum. The differences between PMSBY and PMJJBY are listed in the below table:

Particulars Pradhan Mantri Suraksha Bima Yojana Pradhan Mantri Jeevan Jyoti Bima Yojana
Type of insurance Personal accident insurance scheme Life insurance scheme
Eligibility Individuals between 18 to 70 years of age with a bank savings account and auto-debit facility. Individuals between 18 to 50 years of age with a bank savings account and auto-debit facility.
Policy period 1-year policy cover. 1-year policy cover.
Premium Rs.12 p.a. Rs.330 p.a.
Payment Mode Premium will be auto-debited from the policyholder's bank savings account every year. Premium will be auto-debited from the policyholder's bank savings account every year.
Risk Coverage Sum insured up to Rs.2 lakh Sum insured up to Rs.2 lakh
Termination of assurance Policy cover will cease if an individual is insured under PMSBY scheme with more than one bank savings account, reaches 70 years of age, has insufficient bank balance, closes the bank account. Policy cover will cease if the account holder reaches 55 years of age, has insufficient bank balance, closes the account or has multiple coverage under the scheme.

Frequently Asked Questions:

  1. What is total disability.

    A. Total disability is total and irrecoverable loss of both eyes or loss of use of both feet or hands or loss of sight of one eye and loss of use of foot or hand.

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

    A. Yes, the subscriber will receive Rs.1 lakh if he suffers from partial disability due to an accident.

  3. Who administers the scheme?

    A. The scheme is administered by the public sector general insurance companies and other general insurance companies who are in collaboration with the 28 participating banks.

  4. Will I get the benefits of this scheme if I have another insurance scheme?

    A. Yes, you will get the benefits of the scheme in addition to any existing accidental insurance cover.

  5. What will happen if I have insufficient balance in my savings account and the account has been closed?

    A. In the event you have insufficient balance in your savings account and it has been closed or if you don’t have sufficient balance to keep the policy in force, then your accident cover assurance will be terminated.

  6. Is a NRI eligible for coverage under PMSBY?

    A. If a NRI has eligible bank account that is located in India and is meeting the eligibility criteria, then he or she can take the PMSBY scheme. The claim benefit will be paid to the nominee in Indian currency.

  7. Can the hospitalization expenses be reimbursed under this scheme?

    A. No, the hospitalization expenses following the accident that results in death or disablement is not reimbursed.

  8. For claiming the benefits, should one obtain the FIR?

    A. Yes, the FIR must be obtained if you are claiming for benefits under PMSBY.

  9. If the subscriber is missing and his or her death is not confirmed, will the nominee or the legal heir get any benefits?

    A. Insurance benefit is only paid on the confirmation of the death of the insured or on expiry of the period that is specified by the law to presume the death of a person, which is 7 years.

  10. Will the insured get any benefit if he suffers partial disability but it is irrecoverable?

    A. No benefit will be paid to the insured if the disability is recoverable.

GST rate of 18% applicable for all financial services effective July 1, 2017.

Disclaimer: Premiums may vary depending upon factors like age, location and prevailing taxes/GST.

News About PMSBY

  • Insurers feel a need for a threefold hike in government insurance premium

    The Pradhan Mantri Suraksha Bima Yojana (PMSBY), a government-backed insurance scheme that provides accident coverage of up to Rs. 2 lakh at an annual premium of Rs.12, saw a claim ratio of 200% in just 3 years of its inception. Looking at the ratio, the country’s largest public insurer - New India Assurance holds a view that the premium should increase threefold to at least Rs. 35 per annum. The premium amount wasn’t reviewed previously as the government wanted to see how the scheme would perform in the first three years. But now, with almost 13 crore enrollments and 14,400 claims settled, the goal of maximum insurance coverage seems to be achievable. Also, with this year’s budget announcing the distribution of micro-insurance via Jan Dhan Yojana accounts, more insurance penetration is expected in the non-life insurance segment.

    13 February 2018

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