PMSBY policy is one of the 3 social security schemes launched under Atal Pension Yojana. It was launched by the government in the 2015. It is an accident insurance scheme, wherein the life assured will get 1 year accidental death & disability cover. This scheme can be renewed on annual basis.
What is PMSBY?
Pradhan Mantri Suraksha Bima Yojana (PMSBY) has one year term which starts from 1st June of every year and ends on 31st May of the subsequent year. In case, one wishes to continue with the scheme after 1 year tenure, s/he has to give her/his consent for auto debit details by 31st May of every year.
Eligibility Criteria for Pradhan Mantri Suraksha Bima Yojana:
|Sum Assured (in INR)||Rs. 1 lakh for Partial Disability||Rs. 2 lakhs for Accidental Death and Total Disability|
|Entry Age||18 years||70 years|
|Policy Term||1 year|
|Payment Mode||Auto-Debit from the Registered Savings Bank Account|
Highlights of Pradhan Mantri Suraksha Bima Yojana:
- Under the PMSBY policy, the policyholder can get a sum assured of Rs. 2 lakhs for cases of Accidental Death & Permanent Disability; while, for the cases of permanent partial disability it is Rs 1 lakh.
- Permanent total disability can be described as:
- Irrecoverable and total loss of both eyes
- Loss of use of both hands and feet
- Loss of eyesight
- Loss of use of a hand or a foot
- Permanent Partial Disability
- Total & irrecoverable loss of one eye (eyesight)
- Loss of use of a hand or foot
- The PMSBY policy works in addition to the insurance plans a subscriber has. It’s important to understand that Pradhan Mantri Bima Yojana doesn’t work as mediclaim. It means that there is no provision for reimbursement of medical expenses under this scheme (following accidental death or disability).
- Pradhan Mantri Suraksha Bima Yojana is available to the individuals who hold savings bank accounts with the registered banks in the scheme. The policy has an annual premium of Rs 12. PMSBY scheme is exempted from GST or any other tax.
- The amount of Rs 12 will be automatically debited from the savings account one has registered her/his PMSBY policy with. This scheme is offered through public sector banks and is administered by public sector general insurance companies.
- This scheme was initially available for the individuals who hold bank accounts under the Pradhan Mantri Jan Dhan Yojana scheme that had zero balance facility. With the help of these schemes, the government is aiming to reduce the number of such zero balance accounts.
- These days, every bank account holder can avail this facility through her/his net-banking services at any time of the year.
Benefits Offered Under Pradhan Mantri Suraksha Bima Yojana:
|Accidental Death||A sum assured of Rs. 2 lakhs|
|Accidental Total Disability||A sum assured of Rs. 2 lakhs|
|Accidental partial Disability||A sum assured of Rs. 1 lakh|
Exclusions Under Pradhan Mantri Bima Yojana:
Few of the major exclusions under PMSBY policy are:
- Suicide or attempted suicide (while sane or insane or under the influence of alcohol or drugs)
- Intentional self injury,
- A business loss occurred due to involvement in an act that is in breach of law.
Features of Pradhan Mantri Bima Yojana:
- In case a customer has multiple savings accounts with a bank, s/he would still be issued with only one policy. If by chance, the customer is found to have multiple policies, the premium amount for extra policies will be returned to her/his respective bank accounts and the extra policies will be cancelled. Please understand that no claims will be entertained thereafter. The PMSBY policy will commence from the date of premium debit.
- The customers need to pay the full premium amount even if they join the scheme after the Group policy commencement.
- The membership of the customers will continue till the time, the subscribers are paying their due premium before the annual renewal date.
- The policy will only be issued under a subscriber’s name if s/he has got her/his mobile number updated in her/his savings account. Please understand that there will be no separate intimation shared by the bank with the customer about her/his contact number status.
- The customers have to respond through their registered mobile number. Their response will be considered as their consent to confirm whether they want to continue with the scheme or not.
- In case, any information shared by the customer is found to be incorrect or untrue, her/his membership of the scheme will be cancelled and the premium paid will be forfeited. Please understand that there will be no refund of premium for such cases.
- The renewal premium amount of Rs. 12 will be auto-debited from the subscriber’s account in-between May 25th to May 31st of every year. The subscribers, who wish to cancel the auto-debit service, have to submit their request before April 30th of the particular year.
- Joint account holders can also register for the PMSBY policy by submitting am enrolment request. This facility is available at ICICI Bank Branch only.