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Fincash » Mutual Funds India » Pradhan Mantri Suraksha Bima Yojana

Pradhan Mantri Suraksha Bima Yojana

Updated on June 11, 2024 , 1690 views

The Pradhan Mantri Suraksha Bima Yojana programme (PMSBY) aids in your ability to be ready for unanticipated events. The PMSBY system is especially helpful in case you have dealt with unexpected death or harm to you or your family. This accident insurance scheme provides accidental death and disability coverage caused by an accident. It is a one-year cover, renewable yearly. The Public Sector General Insurance companies (PSGICs) and other general insurance firms willing to offer the product on comparable conditions with the requisite approvals collaborate with banks for this purpose to provide and administer the scheme. The participating banks can work with these insurance providers to administer the program for their subscribers.

Pradhan Mantri Suraksha Bima Yojana

With the Pradhan Mantri Suraksha Bima Yojana program, the uninsured population will now have access to insurance. By providing insurance to socially vulnerable groups and ensuring their financial stability, the program also advances the goal of Financial Inclusion. According to Section 10(10D) of the 1961 income tax Act, benefits up to Rs. 1 lakh is not subject to tax.

Accidental and Maturity Benefits

With PM Suraksha Bima Yojana, the recipients get the following:

  • Rs. 2 lakhs upon the insured's death
  • Up to Rs. 2 lakhs in case of a total and irrecoverable loss of both eyes or the inability to use both hands or feet
  • Rs. 1 lakh for complete and permanent loss of vision in one eye or loss of use of one hand or foot

However, keep in mind that this insurance makes neither a maturity reward nor a surrender benefit available.

PMSBY Premiums

Each member pays Rs.12 per year. The premium will be automatically deducted in an installment from the insured person's savings Bank account through the auto debit feature on or before 1st June of each year. However, if an auto-debit occurs after 1st June, the cover will start on the first of the month that follows the auto-debit. According to the history of annual claims, the premium would be reviewed. However, attempts would be made to prevent an increase in premium over the first three years, barring unforeseeable, unfavourable results of an extreme magnitude.

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Enrollment Period

You can offer an indefinite or longer option for enrollment or auto-debit, provided that the program is continued and the terms are flexible based on prior experience. Through the mode mentioned above, if you leave the plan at any time, you can rejoin it in subsequent years. While the program is still in effect, future years will allow new entrants into the eligible group from year to year or current eligible individuals who did not join earlier.

Master Policyholder

Participating banks will hold the master policy on behalf of the master subscribers. The relevant general insurance carrier shall establish an easy-to-use administration and claim settlement procedure in cooperation with the participating banks.

Documents Required

It is necessary to complete the Pradhan Mantri Suraksha Bima Yojana application form completely. The documents that must be submitted are as follow:

  • Proof Id
  • aadhaar card
  • Contact information
  • Nominee details
  • Properly filled the application form

If the Aadhaar isn't linked to a savings bank account, the only document that must be given with the application is a copy of your Aadhaar card.

Eligibility Criteria

The following are the requirements for participation in the Suraksha Bima Yojana:

  • PMSBY age limit Range is 18 to 70 years
  • A savings bank account is required
  • The Aadhaar card and the bank account need to be connected. The application form must be submitted with a copy of the Aadhaar card if the bank account isn't linked to the Aadhaar card
  • A person with multiple savings accounts can only sign up for the program using one bank account

Claim Process

The process to submit a claim for benefits under PMSBY is as follows:

  • The bank must be notified of the accident by the insured or the nominee (in the event of death)
  • You must get a claim form from the bank, the specific insurance provider, or online. The form must be properly completed
  • The claim form has to be submitted to the bank within 30 days from the date of the accident
  • Original FIR, a death certificate, a post-mortem report, or a disability certificate (in specific cases) issued by a Civil Surgeon must be submitted with the claim form. If the insured person was hospitalised, you would have to include a discharge certificate as well
  • The bank will check the account information within 30 days of receiving the claim before sending the case to the insurance provider
  • The insurer will confirm that the insured is included in the master policy's list of insured parties
  • After receiving the necessary paperwork from the bank, the claim will be handled within 30 days
  • The admissible claim will then be paid to the account of the nominee or insured
  • The insured's lawful Heir will receive the death benefit if no nominee has been designated by the insured. The legitimate heir must present the succession certificate
  • The bank is given a 30-day window to complete the claim process

The following details must be provided on the claim procedure form:

  • The insured's name and complete address
  • Identifying information for the bank branch
  • Bank account details
  • The insured's contact information, including their cellphone number, email address, phone number, and Aadhaar number
  • Nominee's details, such as their name, email address, mobile number, bank account for electronic transfer, and Aadhaar number
  • Details of the accident, including the day, date, and time it happened, where it happened, what caused it, and whether it caused death or injury
  • Name, address, and contact information of the hospital or treating physician
  • Date and time when the company's medical officer visited the insured
  • Information about the materials that were submitted

The declaration must be signed by the nominee or claimant, who must also include the date, the policy number, and the claim number. The form will then be reviewed by the authorised bank representative, who will sign it and give it to the insurance company.

PMSBY Online Apply

Here is how to register online for PMSBY:

  • You can choose PMSBY by contacting one of the collaborating banks or insurance firms
  • The majority of reputable banks permit you to purchase insurance via internet banking
  • You must sign up for the program by logging into your online banking account
  • Alternatively, you can also send a message to the banks' and insurance companies' toll-free numbers using your registered mobile phone

How to Sign Into PMSBY?

The steps to log into PMSBY online are as follows:

  • Use your online banking credentials to sign in
  • Choose the 'Insurance' section
  • Select Pradhan Mantri Suraksha Bima Yojana
  • Decide which account you wish to use to pay your insurance premiums
  • Select 'Submit'

Activating PMSBY SMS Facility

The methods listed below will help you activate the PMSBY SMS service:

  • Visit the website of your bank and select the PMSBY option
  • Put your account number and the captcha code
  • Obtain the OTP on the registered number with the bank and enter it
  • Give all the necessary information
  • Select 'Submit'

Activating PMSBY Internet Banking

Here's how to activate the policy via internet banking:

  • Log in to your online banking account
  • Click 'Insurance'
  • Then, choose the account from which to deduct the payment
  • Verify the specifics and confirm
  • Save the insurance Receipt

Cover Termination

Any of the following instances can result in the termination of your accident insurance, and no benefits will be paid under them:

  • Upon becoming 70 years old (age nearest birthday)
  • The bank's account is closed, or there is not enough money in the account to keep the insurance in effect
  • If you have coverage through more than one account and the insurance company unintentionally receives a premium, only one account will be protected, and the premium will be lost
  • Suppose the Insurance Coverage is terminated because of administrative or technical reasons, such as an unpaid balance on the due date. In that case, it can be reinstated upon receipt of the entire annual premium, subject to any applicable terms that are established. The risk cover will then get suspended during this period, and the insurance company will have the exclusive decision to resume the risk cover
  • When the auto debit option is selected, preferably in May each year, participating banks will deduct the premium payment and send the money owed to the insurance company in the same month

Conclusion

The programme will run following the insurance company's established standard operating procedure. Separate versions of the data flow process and data proforma will be made available. The partnering bank will use the 'auto-debit' mechanism to collect the account holders' proper annual premium within the required time frame. The collaborating bank shall receive and preserve the enrollment form/auto-debit authorisation in the approved proforma. The insurance company can ask for the submission of a claim. At any moment, the insurance company reserves the right to request these documents. The scheme's performance will be reviewed yearly for possible re-calibration.

Disclaimer:
All efforts have been made to ensure the information provided here is accurate. However, no guarantees are made regarding correctness of data. Please verify with scheme information document before making any investment.
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