Accidents take place on a daily basis in India and although the rich and the middle class can afford to take accidental insurance, the poor find it difficult to take accidental insurance as the premium payment is too high. The government realised this problem and announced Pradhan Mantri Suraksha Bima Yojana as a social security scheme that will provide compensation to the deceased’s family. The premium payment is low and affordable by the poor.
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.
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.
Overview of Pradhan Mantri Suraksha Bima Yojana (PMSBY)
Pradhan Mantri Suraksha Bima Yojana is a social security scheme offered by the government to the people in the Below Poverty Line category. Accidents don't occur based on whether an individual is rich or poor. However, a personal accident insurance is affordable only by the rich and middle income groups. Understanding the plight of the poor, the Indian government launched the PMSBY scheme after the success of Pradhan Mantri Jan Dhan Yojana scheme.
The death benefit of PMSBY is up to Rs.2 lakhs. In the case of total disability such as the loss of both hands or eyes, the insurance cover is up to Rs.2 lakh. In the case of partial disability such as the loss of one limb or eyes, the sum assured is Rs.1 lakh. The insurance premium of PMSBY scheme is Rs.12 per annum for each member. The premium amount will be deducted from the bank savings account of the policyholder via auto-debit facility every June.
Individuals between 18 to 70 years of age can apply for PMSBY scheme. To be registered under the scheme, aadhaar card must be furnished as KYC document. PMSBY policy will be terminated if the policyholder reaches 70 years of age, the bank savings account doesn't have minimum balance to pay the premium via auto-debit facility or having more than one policy under the same scheme. This scheme was launched in 2015, by 2016, 124 million Indians had enrolled for the PMSBY scheme.
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.
The Pradhan Mantri Suraksha Bima Yojana application form is to be duly filled. The details to be filled are:
- Aadhaar number
- Contact information
- Nominee details
- The application form is available in English, Hindi, Bengali, Marathi, Oriya, Telugu, Tamil and 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 enrol 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 enrol 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|
|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|
|Jharkhand||Bank of India||1800-345-6576|
|Himachal Pradesh||UCO Bank||1800-180-8053|
|Haryana||Punjab National Bank||1800-180-1111|
|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:
- What is the nature of the Pradhan Mantri Suraksha Bima Yojana scheme?
A. The PMSBY scheme is a one year cover personal accident insurance scheme. The scheme can be renewed yearly and it offers protection against death or disability due to accident.
- What is the minimum age requirement to subscribe to Pradhan Mantri Suraksha Bima Yojana?
A. The minimum age requirement to subscribe to Pradhan Mantri Suraksha Bima Yojana is 18 years.
- What is the maximum age requirement to subscribe to Pradhan Mantri Suraksha Bima Yojana?
A. The maximum age requirement to subscribe to Pradhan Mantri Suraksha Bima Yojana is 70 years.
- What is the eligibility criteria to subscribe to Pradhan Mantri Suraksha Bima Yojana?
A. The subscriber must be between the ages of 18 – 70 years and must have a savings bank account in the participating banks is eligible for subscribing to the Pradhan Mantri Suraksha Bima Yojana.
- What benefits will the subscriber’s nominee receive in the event the subscriber dies in an accident?
A. The nominee will receive Rs.2 lakh in the event the subscriber dies in an accident.
- Will the subscriber receive any benefit if he or she suffers total disability due to an accident?
A. Yes, the subscriber will receive Rs.2 lakh if he suffers total disability due to an accident.
- Define 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.
- 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.
- Define partial disability.
A. Partial disability is total and irrecoverable loss of sight of one eye or use of one foot or hand.
- How much premium is to be paid for the scheme?
A. The premium payable is Rs.12 per annum.
- Does the premium include the taxes?
A. No, the premium is excluding the service tax which is charged at 14%.
- How is the premium payment done?
A. The premium is deducted from the subscriber’s savings account through the auto-debit facility. The premium is paid in one instalment.
- How is the premium apportioned?
A. Rs.10 per annum towards the insurance premium to the public sector general insurance companies or other insurance company.
Re.1 per annum towards reimbursement of expenses to micro, corporate or agent.
Re.1 per annum towards the reimbursement of administrative expenses to the participating banks.
- How many participating banks offer PMSBY?
A. There are 28 participating banks that offer PMSBY.
- How many insurance companies offer PMSBY?
There are 8 insurance companies offering PMSBY.
- 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.
- What is the enrolment period?
A. The enrolment period is from 1st June, 2015 to 31st May, 2016. The auto-debit option to be given by 31st May, 2015.
- If an individual leaves the scheme, can he or she rejoin in the future?
A. Yes, the individual can rejoin in the future year after paying the annual premiums.
- Who is the master policyholder of Pradhan Mantri Suraksha Bima Yojana?
A. The participating banks are the master policyholders of the scheme.
- Can a subscriber enrol for the scheme in two or more banks?
A. No, subscriber can enrol for the scheme through one savings bank account only. If he or she has enrolled for the scheme through another account, it will be terminated and the insurance cover will be restricted to one account only.
- 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.
- 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.
- What other conditions lead to the termination of the accident cover assurance?
A. On attaining 70 years of age the policy cover will be terminated.
- What is the role of the insurance company and the participating banks?
A. The participating banks and the insurance companies will have to administer the scheme. The participating bank will have to recover the annual premium in one instalment from the account holder on or before the due date through the auto-debit facility. After collecting the annual premium the amount must be transferred to the insurance company.
- Does PMSBY cover death or disability that results from natural calamities?
A. Natural calamities as defined under PMSBY is covered.
- Does PMSBY cover death due to suicide or murder?
A. Death due to suicide is not covered. Whereas, death due to murder is covered.
- If the savings bank account is a joint account, can all the holder join the PMSBY scheme?
A. Yes, all the holders of the PMSBY scheme can join the scheme provided they meet the eligibility criteria and pay the premium of Rs.12 per annum per person via the auto-debit facility.
- 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.
- Can the hospitalisation expenses be reimbursed under this scheme?
A. No, the hospitalisation expenses following the accident that results in death or disablement is not reimbursed.
- Who can make the claim for the death benefit at the bank that the subscriber has enrolled?
A. The death benefit claim can be made by either the nominee or the legal heir in case there was no nomination was made.
- How is the claim amount paid?
A. The disability claim amount will be credited to the subscriber’s bank account. The death claim amount will be remitted to the nominee’s account or to the legal heir’s account.
- Should the accident be reported to the police?
A. Yes, the accident must be reported to the police.
- For claiming the benefits, should one obtain the FIR?
A. Yes, the FIR must be obtained if you are claiming for benefits under PMSBY.
- What record should one submit to claim for benefits if the subscriber died from a snake bite or if he fell from a tree?
A. If the subscriber died from a snake bite or if he fell from a tree, then the same must be supported by immediate hospital record and submit it while claiming for benefits under PMSBY.
- 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.
- 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.
- Can the nominee claim for benefit in the event the subscriber dies via a natural death?
A. No nominee cannot claim for PMSBY death benefit if the subscriber dies due natural causes.
- What is the claim process to avail the benefits under PMSBY?
A. Nominee will have to inform the bank branch, where the subscriber took the policy. After receiving the intimation of death, then bank will send claim form, death certificate, discharge form and the insurance certificate that it collects from the beneficiary to the insurance company.
Once the claim is approved, the amount will be paid to the nominee’s bank account and the same will be intimated to the bank branch. If the claim is rejected, the insurance company will intimate the same to the designated branch.
- How many people have subscriber for PMSBY?
A. As on 11th May, 2015, 15,216,844 rural male, 7,873,163 rural female, 16,996,833 urban male and 8,792,937 urban female have subscribed for this scheme. The total number of people who have subscribed to PMSBY is 48,879,777.
- How to apply for Pradhan Mantri Suraksha Bima Yojana?
Apply via SMS: Eligible customers will be sent an SMS from the bank to enroll for the scheme. The customer has to reply with 'PMJJBY
Y' to the SMS. The policyholder and nominee details will be obtained from the banking records for the application process.
- Apply via net banking: Log in to the net banking website of your bank and click on the 'Insurance' tab. Choose PMSBY scheme from the drop down box. Select the bank account through which you want to make premium payment. The policy and nominee details will be displayed on the screen. Declare good health, acceptance of terms and conditions, and confirm that you don't hold any other policy under the same scheme by clicking on the respective buttons. Click on confirm and download the acknowledgement document for future reference.
- Apply via SMS: Eligible customers will be sent an SMS from the bank to enroll for the scheme. The customer has to reply with 'PMJJBY
- How to claim Pradhan Mantri Suraksha Bima Yojana?
Fill up the claim form and submit it along with the supporting documents such as Death Certificate, FIR, post mortem report, discharge certificate, and insurance certificate at the bank with which you have the savings account. The bank will send the documents to the nearest insurance office for review. Upon approval of the claim request, the insurance company will transfer the claim amount to the policyholder or beneficiary's savings account.
- How to cancel Pradhan Mantri Suraksha Bima Yojana?
You can terminate the policy by cancelling the payment of premium amount via auto-debit facility through your bank savings account. The insurance cover will cease when the yearly premium payment is not made.
- How to download Pradhan Mantri Suraksha Bima Yojana certificate?
Contact the bank with which you have a savings account and registered for the PMSBY scheme to download the PMSBY certificate.
- How to check Pradhan Mantri Suraksha Bima Yojana status?
Visit the bank website with which you have a savings account and through which you applied for the PMSBY scheme. Enter your bank account number and application number, and click on 'Submit' to track your PMSBY application status.
- How to apply for Pradhan Mantri Suraksha Bima Yojana online?
Step-by-guide to apply for PMSBY scheme online:
- Log in to the net banking website of the bank with which you have a savings account.
- Click on the 'Insurance' tab.
- Choose PMSBY scheme from the drop down box.
- Select the bank account through which you want to make premium payment. The policy and nominee details will be displayed on the screen.
- Declare good health, acceptance of terms and conditions, and confirm that you don't hold any other policy under the same scheme by clicking on the respective buttons.
- If you agree with the scheme details, click on confirm and download the acknowledgement document for future reference.
- How to fill the Pradhan Mantri Suraksha Bima Yojana form?
Download the PMSBY application form from the bank website. The enrolment period for 1st June of the current year to 31st May of the next year. The following details have to be filled by the applicant:
- Bank savings account number.
- Name, address, date of birth, email ID, phone number, aadhaar number, and nominee details.
- Name of the insurance company issuing the policy has to be written in the form.
- Check the appropriate box in the case of any disability or if the nominee is a minor.
The duly-filled and signed form has to be submitted to the bank.
- Who can apply for Pradhan Mantri Suraksha Bima Yojana?
PMSBY scheme was launched for the poor people who can’t afford a regular personal accident insurance cover. People in the Below Poverty Line category who are spread across the rural areas of the country can benefit from this social security scheme. Individuals between 18 to 70 years of age with a bank savings account with auto-debit facility can apply for the scheme.
- What is the toll-free number for Pradhan Mantri Suraksha Bima Yojana?
For any PMSBY scheme-related queries, call toll-free number, 1800-180-1111/1800-110-001.
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.