The Pradhan Mantri Suraksha Bima Yojana (PMSBY) is a government-backed accidental insurance scheme that aims to provide financial security to the low-income group in the country. Launched in 2015, the scheme is a part of the government’s social security program and is administered by the Life Insurance Corporation of India (LIC). The PMSBY insurance scheme is available to all Indian citizens between the ages of 18 to 70 years, including NRIs, provided they have a bank account.
The scheme provides an accidental death and disability insurance cover of Rs 2 lakhs at a very nominal premium of Rs 12 per annum. The policy period of the scheme is one year, starting from June 1st and ending on May 31st. The scheme has to be renewed every year to continue the insurance cover. The premium amount of Rs 12 is auto-debited from the policyholder’s bank account on an annual basis.
The PMSBY insurance scheme is a no-frills policy and is designed to provide financial security to the masses. The insurance cover provided by the scheme can be used to meet the expenses of the policyholder’s family in case of accidental death or disability. The scheme is especially beneficial to those who cannot afford expensive insurance policies.
The PMSBY insurance scheme covers accidental death, permanent total disability, and permanent partial disability. In case of accidental death, the nominee of the policyholder is entitled to receive the insurance amount of Rs 2 lakhs. In case of permanent total disability, the policyholder is entitled to receive the insurance amount of Rs 2 lakhs. In case of permanent partial disability, the policyholder is entitled to receive a percentage of the sum insured, depending on the nature and extent of disability.
To avail of the benefits of the PMSBY insurance scheme, the policyholder has to fulfill certain eligibility criteria. The policyholder should be a citizen of India, aged between 18 to 70 years, and should have a bank account. The policyholder should also give their consent to auto-debit the premium amount from their bank account. The policyholder should also submit a self-declaration form to the bank, stating that they do not have any other accidental insurance policy.
The PMSBY insurance scheme has become very popular in India due to its low premium amount and high insurance cover. The scheme has helped many low-income families to secure their future in case of any accidental event. The scheme has also encouraged people to opt for insurance policies, who were earlier reluctant due to high premium amounts.