What is Pradhan Mantri Suraksha Bima Yojana and How it Works?

In an effort to provide affordable insurance coverage to the vast population of India, particularly the economically weaker sections, the Government of India launched the Pradhan Mantri Suraksha Bima Yojana (PMSBY) on May 9, 2015. This scheme is aimed at broadening the reach of accidental insurance in India and providing financial support to the beneficiaries in case of accidents leading to the death or disability of the insured. PMSBY embodies the government's vision of a more secure and financially inclusive India. Let’s take a closer look at what PMSBY is and how it functions.

When registering, an annual premium of Rs. 20 is charged per policyholder. This amount is automatically debited from the insured individual’s bank or Post Office account before or on June 1st of each coverage year. The Insurance coverage under PMBSY is valid for a one-year period, starting from June 1st and extending to May 31st, following the payment of the annual premium. However, a policyholder should be aware that the insurance can be ceased or limited when the insured turns 70 (age nearest to their birthday) or if the automatic debit account is closed/ holds an insufficient balance. An insured cannot pay additional premiums from multiple accounts and obtain more insurance coverage as it is limited to Rs. 2 lakh insurance per person.

Benefits

In the event of death - Rs 2 Lakh will be paid to the nominee

In the event of irreversible loss of both eyes/both hands/both legs - Rs 2 Lakh will be paid to the policyholder

In the event of irreversible loss of a single eye/one hand/one leg - Rs 1 Lakh will be paid to the policyholder

To enrol, individuals must be between the ages of 18 and 70 and possess a bank or post office account to meet the eligibility criteria. Additionally, they are required to provide consent for the automatic deduction of the premium from their bank or post office account as a condition for onboarding.

Individuals can be onboarded both online and offline.

To register offline: One can visit the bank or post office branch associated with their savings account or download the application form from the official website, https://jansuraksha.gov.in/Forms-PMSBY.aspx. After duly filling out the form, it should be submitted to the bank along with the necessary documents. Upon successful completion, the applicant will receive an Acknowledgment Slip cum Certificate of Insurance.

To register online: One can also obtain an insurance policy under PMSBY online via their bank's online banking facility.

Claim Process of Pradhan Mantri Suraksha Bima Yojana

After an accident that may result in a claim under the policy, the insured or the nominee (in the event of the insured's death) should promptly contact the bank branch where the insured person maintained the underlying bank account. They are required to submit a duly completed claim form to initiate the claim process. (The form for filing a claim can be obtained from the specified bank branch or alternative authorised outlets like insurance company branches, hospitals, PHCs, BCs, insurance agents, and designated websites.)

In the event of the insured's death, the claim form should be accompanied by the authentic FIR/Panchnama, Post Mortem Report, and Death Certificate. For cases of permanent disablement, the required support includes the original FIR/Panchnama and a Disability Certificate issued by a Civil Surgeon. Additionally, the claimant or nominee must submit a discharge certificate in the authorised format (The format can also be obtained along with the application form).

The insured or, if applicable, the nominee must fill out the Claim form and ideally submit it to the mentioned bank branch within 30 days of the accident that triggers the claim under the policy.

The insurance company will authenticate the details, and if the documents are legitimate, the claim will be settled. With that, the claim amount transferred to the specified bank account within 60 days of submission.

If an insured individual passes away without designating a nominee, the eligible claim amount will be disbursed to the legal heirs upon providing a Succession Certificate or Legal Heir certificate from the competent court or authority.

In Conclusion

The Pradhan Mantri Suraksha Bima Yojana is a crucial element of India's social security framework, aiming to cultivate insurance awareness and inclusivity. By offering an affordable safety net accessible to all, it extends insurance to the grassroots level, enhancing the financial well-being of the population. As of April 26, 2023, slightly more than 340 million individuals have enrolled in PMSBY. Claims totaling over Rs 2000 Cr have been processed, benefiting over 100,000 policyholders by that time.

This initiative is a significant step in safeguarding economically vulnerable sections, providing substantial coverage at a minimal premium. The evolving scheme promises a more secure and resilient society, poised to tackle future challenges effectively.