An accident insurance scheme, PMSBY (Pradhan Mantri Suraksha Bima Yojana) offers a one-year accidental death and disability cover@Rs 12 p.a, which can be renewed annually.
A social security scheme of the central government, PMSBY aims to provide insurance cover to individuals in cases of accidents leading to death or disability. PMSBY (Pradhan Mantri Suraksha Bima Yojana) is one of three social security schemes that the government had announced in the 2015 Budget. The other two being Pradhan Mantri Jeevan Jyoti Bima Yojana (PMJJBY) and the Atal Pension Yojana (APY).
Enrollment period:
The risk cover is for a one-year period.
What all is covered and for how much?
Under PMSBY, the risk coverage available is Rs 2 lakh for accidental death and permanent total disability, and Rs. 1 lakh for permanent partial disability. Permanent total disability is defined as total and irrecoverable loss of both eyes or loss of use of both hands or feet or loss of an eyesight and loss of use of a hand or a foot. Permanent partial disability is defined as total and irrecoverable loss of an eyesight or loss of use.
The cover will be in addition to any other insurance plan the subscriber has. The scheme is not a Mediclaim, i.e., there is no provision for reimbursement of hospitalisation expenses following accident, resulting in death or disability.
Important inclusions and exclusions
Accidents, any death or disability (as defined under PMSBY) resulting from natural calamities is covered under PMSBY. While death due to suicide is not covered, that from murder is covered.
Eligibility
All individual (single or joint) bank account holders in the 18-70 year age group are eligible to join PMSBY. In case you have multiple bank accounts in one or different banks, then you will be eligible to join the scheme through one bank account only. In the case of a joint account, all holders of the account can join the scheme. Even NRIs are eligible, but if a claim arises, the claim benefit will be paid to the beneficiary/nominee only in Indian currency.
How much is the premium and how to pay?
The premium payable is Rs 12 per annum per member and will be deducted from his bank account through an ‘auto debit’ facility in one installment on or before June 1 every year. However, in cases where auto debit takes place after June 1, the cover shall commence from the date of auto debit of premium by the bank.
The annual renewal dates shall be June 1 in subsequent years. Even if one gets enrolled with more than one bank.
