Pradhan Mantri Suraksha Bima Yojana, PMSBY Yojana Details 2018

Pradhan Mantri Suraksha Bima Yojana, PMSBY Yojana Details 2018. The scheme will be a one year cover, renewable from year to year, Accident Insurance Scheme offering accidental death and disability cover for death or disability on account of an accident. The scheme would be offered / administered through Public Sector General Insurance Companies (PSGICs) and other General Insurance companies willing to offer the product on similar terms with necessary approvals and tie up with Banks for this purpose. Participating banks will be free to engage any such insurance company for implementing the scheme for their subscribers.

Cabinet on 6th May gave approval to three mega social security initiatives — one pension and two insurance schemes….These initiatives are aimed at providing affordable universal access to important social security protection ,to under privileged classes
Here I’m going to discuss a few lines about Pradhan Mantri Suraksha Bima Yojana – Complete Details.

The scheme is  a one year coverage yojana. Thus it is renewable from year to year, Accident Insurance Scheme offering accidental death and disability cover for death or disability on account of an accident. The scheme would be administered through Public Sector General Insurance Companies (PSGICs) and other General Insurance companies willing to offer the product on similar terms with necessary approvals and tie up with Banks for this purpose.

Pradhan Mantri Suraksha Bima Yojana

Pradhan Mantri Suraksha Bima Yojana

Eligibility criteria for Pradhan Mantri Suraksha Bima Yojana :

All savings bank account holders in the age ‘” 18 to 70 ‘” years in participating banks will be eligible to join. Participating banks in the sense all those banks which are offering this service governing the norms laid down by the government of India. In case of multiple saving bank accounts held by an individual in one or different banks, the person would be eligible to join the scheme through one savings bank account only.

The savings bank account holders of the participating banks aged between 18 years (completed) and 70 years (age nearer birthday) who give their consent to join / enable auto-debit, as per the above modality, will be enrolled into the scheme.

Must Read – Sukanya Samridhi Yojana

In case of Joint Account holders, both the Account holders are eligible to join on payment of premium for each account holders.

Premium under Pradhan Mantri Suraksha Bima Yojana:

With a view of encouraging all classes of individuals government has fixed Rs. 12/- as premium  per annum per member. The premium will be deducted from the account holder’s savings bank account through ‘auto debit’ facility in one installment on or before 1st June of each annual coverage period under the scheme. However, in cases where auto debit takes place after 1st June, the cover shall commence from the first day of the month following the auto debit. As the premium payable is very nominal it may attract the attention of a lot of individuals in future.

Appropriation of premium :

a. Insurance Premium to PSGIC / other insurance company :  Rs.10/- per annum per member.
b. Reimbursement of Expenses to BC/Micro/Corporate/Agent :  Rs.1/- per annum per member.
c. Reimbursement of Administrative expenses to participating Bank :  Rs.1/- per annum per member.

Must Read – Pradhan Mantri Suraksha Bandhan Yojana

Benefits of Pradhan Mantri Suraksha Bima Yojana:

Following are the benefits that are going to be available to the subscribers of this scheme:

S.No Case Assured Sum (RS)
1 Death Rs. 2 Lakh
2 Total and irrecoverable loss of both eyes or loss of use of both hands or feet or loss of sight of one eye and loss of use of hand or foot Rs. 2 Lakh
 3  Total and irrecoverable loss of sight of one eye or loss of use of one hand or foot  Rs. 1 Lakh

Mode of payment of premium :

The premium amount will be deducted from the account holder’s savings bank account through ‘auto debit’ facility in one installment for the entire year, as per the option to be given on enrolment. Members may also give one-time mandate for auto-debit every year till the scheme is in force, subject to re-calibration that may be deemed necessary on review of experience of the scheme from year to year.

Rs.12/- per annum per member. The premium will be deducted from the account holder’s savings bank account through ‘auto debit’ facility in one installment on or before 1 st June of each annual coverage period under the scheme. However, in cases where auto debit takes place after 1st June, the cover shall commence from the first day of the month following the auto debit.

Must Read – Public Provident Fund (PPF)

Period of enrolment :

The cover shall be for the one year period stretching from 1st June to 31st May for which option to join / pay by auto-debit from the designated savings bank account on the prescribed forms will be required to be given by 31st May of every year, extendable up to 31st August 2015 in the initial year. Initially on launch, the period for joining may be extended by Govt. of India for another three months, i.e. up to 30th of November, 2015. Joining subsequently on payment of full annual premium may be possible on specified terms.

However, applicants may give an indefinite / longer option for enrolment / auto-debit, subject to continuation of the scheme with terms as may be revised on the basis of past experience. Individuals who exit the scheme at any point may re-join the scheme in future years through the above modality. New entrants into the eligible category from year to year or currently eligible individuals who did not join earlier shall be able to join in future years while the scheme is continuing.

The premium would be reviewed based on annual claims experience. However, barring unforeseen adverse outcomes of extreme nature, efforts would be made to ensure that there is no upward revision of premium in the first three years.

Enrolment in subsequent years :

Those who could not join in the year of inception of this scheme can join in the subsequent years by paying the premium amount through auto debit , directly from their bank account.

Must Read – Sukanya Samridhi Yojana vs PPF

Re-joining of subscribers who leave the scheme :

Individuals who exit the scheme at any point may re-join the scheme in future years by paying the annual premium, subject to conditions that are to be issued.

Complexity in claim settlement :

In this scheme Participating Banks will be the Master policy holders. A simple and subscriber friendly administration & claim settlement process shall be finalized by PSGICs / chosen insurance company in consultation with the participating bank.

Termination of benefit cover :

In following cases the cove will be terminated and no benefit will be payable to the subcribers.

  • 1) On attaining age 70 years  or the age nearest birth day
  • 2) At the time of renewal in subsequent years,due to insufficiency of balance to keep the insurance in force the account gets closed.
  • 3) In case a subscriber is covered by more than one account and premium is paid by the subscriber  intentionally, insurance cover will be restricted to one only and the premium shall be liable to be forfeited.
  • 4) If the insurance cover is ceased due to any technical reasons such as insufficient balance on due date or due to any administrative issues, the same can be reinstated on receipt of full annual premium, subject to conditions that are to be issued in future. During this period, the risk cover will be” suspended” and reinstatement of risk cover will be at the sole discretion of Insurance Company.

Participating banks will deduct the premium amount in the same month when the auto debit option is given,
preferably in May of every year, and remit the amount due to the Insurance Company in that month itself.

Effective from :

The proposed date of commencement of the scheme will be 1st June 2015. The next Annual renewal date shall be
each successive 1st of June in subsequent years.

Appropriation of Premium:

  • 1) Insurance Premium to Insurance Company: Rs.10/- per annum per member
  • 2) Reimbursement of Expenses to BC/Micro/Corporate/Agent : Rs.1/- per annum per member
  • 3) Reimbursement of Administrative expenses to participating Bank: Rs.1/- per annum per member

The proposed date of commencement of the scheme will be 1st June 2015.The next Annual renewal date shall be each successive 1st of June in subsequent years.

The scheme is liable to be discontinued prior to commencement of a new future renewal date if circumstances so require.

Must Read – National Pension Scheme

Download PMSBY Application Form

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Contact Details

The official website of the scheme is  www.jansuraksha.gov.inNational Toll-Free – 1800-180-1111 / 1800-110-001  and  StateWise Toll free number  are listed in this document Statewise Toll-Free (pdf)

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