Introduced in 2015, the Pradhan Mantri Suraksha Bima Yojana (PMSBY) serves as a safety net managed by the Ministry of Finance. Essentially, it’s a government-backed initiative aimed at providing insurance against accidents. Under this scheme, individuals receive coverage for accidental death and disability. Both Public Sector General Insurance Companies (PSGICs) and other General Insurance companies facilitate the coverage.

What is Pradhan Mantri Suraksha Bima Yojana (PMSBY)?

The Pradhan Mantri Suraksha Bima Yojana (PMSBY) is a government-sponsored personal accident insurance scheme. It provides financial protection to the insured in the event of death or disability due to an accident. The scheme is open to all savings bank account holders in the age group of 18 to 70 years.

Eligibility 

Here are the eligibility criteria for Pradhan Mantri Suraksha Bima Yojana (PMSBY):

• You must be between 18 and 70 years old.
• You must have a savings bank account with a participating bank or post office.
• You must have a valid Aadhaar card.
• You must pay a premium of Rs. 20 per year.

The following persons are not eligible for PMSBY:

• Individuals already covered under another government-sponsored accident insurance scheme.
• Persons who are in the armed forces.
• Persons who are in the merchant navy.

Features 

Each year, individuals have the opportunity to enroll in the Pradhan Mantri Suraksha Bima Yojana (PMSBY). They also have the option to opt for a long-term commitment, ensuring continuous coverage. Let’s delve into the key aspects of PMSBY:

Coverage Period: Your policy will be active from June 1st to May 31st of the following year. If you join the Savings Account program on or after June 1st, your coverage will start when the premium is deducted and last until May 31st of the next year.

Premium: Beginning June 1st through May, a yearly premium of Rs. 20 for the PMSBY will be automatically debited from your linked bank account.

Payment Method: The Bank will deduct the premium directly from your savings account. This is the only payment method available. Your policy will be automatically renewed between May 25th and May 31st unless you provide the Bank with a cancellation notice.

Benefits of PMSBY

Here are the benefits of Pradhan Mantri Suraksha Bima Yojana (PMSBY):

• If the insurer unfortunately passes away in an accident, their nominee will receive a benefit of Rs. 2 lakh.
• In case of total disability due to an accident, the nominee will receive a benefit of Rs. 2 lakh.
• If the insurer becomes partially disabled due to an accident, their nominee will receive a benefit of Rs. 1 lakh.
• The premium for PMSBY is just Rs. 20 per year, making it extremely affordable.
• Enrolling in PMSBY is easy; you just need to fill out an application form and submit it to your bank or post office.
• The premium can be conveniently paid through auto-debit from your bank account.
• PMSBY covers all Indian citizens aged between 18 and 70 years.
• No medical examination is required to enroll in PMSBY.

Conclusion

The Pradhan Mantri Suraksha Bima Yojana is a vital accident insurance program aimed at individuals aged 18 to 70, offering them much-needed financial protection. By March 2022, a whopping 22 crore people had enrolled in the PMSBY, signifying its widespread adoption across the nation. As of March 31, 2022, the scheme had disbursed claims totaling Rs 2,513 crores, providing crucial support to policyholders during times of distress. Since its inception, insurers have collected premiums amounting to Rs 1,134 crores, ensuring the sustainability of the program. Looking ahead, there are ambitious plans to increase active subscribers to 37 crores over the next five years, underscoring the government’s commitment to expanding access to insurance coverage for all.

Read Also: Aam Admi Bima Yojana