Pradhan Mantri Suraksha Bima Yojana (PMSBY): Benefits, Eligibility, Features & Coverage

The Government of India is introducing various schemes for the welfare of people who live in rural areas. They aim at catering to the needs of a family that will help get high protection from financial troubles caused by accidents or illness when the primary earning member is not around. First, however, it is imperative to know more about the plans in detail that give ways to make the best decision. For example, the Pradhan Mantri Suraksha Bima Yojana scheme is an accidental insurance policy that offers coverage with very low premiums. Therefore, it is ideal for those who want to ensure security from financial crunches in life.

A majority of people who live in rural areas don’t know about life insurance benefits due to insufficient knowledge and other factors. PMSBY is suitable for them when they want to reduce the financial burden in life when it comes to an accident. It aims at catering to the requirements of a nominee during unforeseen events. On the other hand, the plan doesn’t reimburse the hospitalization expenses since it is a complete life insurance policy.

What are the features of the PMSBY scheme?

Here are the 4 top features of the Pradhan Mantri Suraksha Bima Yojana (PMSBY) as mentioned below:-

• Coverage for accidental death and permanent disability
• Coverage for partial disability
• Flexibility
• Secure processing and continuous coverage

Coverage for accidental death and permanent disability

The plan offers coverage of Rs.2 lakh for accidental death and permanent disability to a nominee to avoid loss of income significantly. A nominee or policyholder can claim amounts for loss of sight on both eyes, both hands, and use of both feet.

Coverage for partial disability

The scheme provides coverage of Rs.1 lakh for partial disability caused by accidents that will help reduce the financial burden.

Flexibility

A policyholder can continue or discontinue the scheme based on his/her decisions, and the re-entry procedures are very simple to understand. 

Secure processing and continuous coverage

The scheme provides secure processing and constant coverage for policyholders by addressing their essential requirements.

Eligibility criteria for PMSBY Scheme 

• Those who are in the age group 18-70 are eligible to apply for this scheme
• A policy buyer should have a valid bank account linked with an Aadhar card 
• Joint-account holders can join the plan 
• NRIs are eligible to apply for the scheme 

Also Read: PMJJBY Scheme Benefits & Features

What are the key highlights of the PMSBY scheme?

A policy buyer should know the Pradhan Mantri Suraksha Bima Yojana benefits that will help make the right decision. 

• It is possible to buy the policy at a nominal amount of Rs.12
• The auto-debit option offered by the scheme allows a policyholder to pay the premium amounts on time 
• Policy buyers can claim tax deductions on premium amounts under section 80C of the income tax act 1961
• A policyholder can opt for a long-term year policy or yearly renewability option

PMSBY scheme coverage termination 

• The scheme will get terminated when a policyholder attains the age of 70 years. 
• If a policyholder has an insufficient balance in his/her account, then the plan will terminate immediately. 
• Closure of bank account may lead to the termination of the policy 
• Policyholders can reinstate their terminated coverage by paying the full premium amount 

Knowing the participating insurance companies and banks

Anyone who wants to choose a scheme should select a bank that has tie-ups with the participating insurance banks. This, in turn, gives ways to get approval as soon as possible to claim amounts with ease. Insurance companies that participate in Pradhan Mantri Suraksha Bima include Bajaj Allianz, National Insurance, Cholamandalam MS, United India Insurance, Reliance General Insurance, New India Insurance, ICICI Lombard, and Universal Sompo. In addition, both public and private sector banks offer policyholders a scheme to make the registration process simple.

How to enroll for the Pradhan Mantri Suraksha Bima Yojana (PMSBY)?

Those who want to enroll their name in Suraksha Bima Yojanacan approach the nearest bank to subscribe to the scheme. They can also visit the Government’s Jansuraksha website to find the details in multiple languages. A policy buyer can download the application form, and he/she should submit the same to a bank. In many cases, a bank will initiate the enrolment process through SMS or an internet banking facility that helps save more time to a large extent.

How to activate the PMSBY Scheme by using the SMS facility?

A policy buyer will receive an SMS on his/her mobile phone for activation purposes after submitting the application form. They should reply to the message with ‘PMSBY Y’ to process the registration process immediately. In the next step, they will receive an acknowledgment receipt. After that, the respective bank will proceed further to manage the policy.

Guidelines to activate a PMSBY Scheme by using the internet banking facility 

Anyone who wants to apply for Pradhan Mantri Suraksha Bima Yojana online can use the internet banking facility to meet essential needs. However, they should log in to the respective bank first and click on the insurance to pay the premium amounts. After making the payment, it is wise to confirm the details, and policy buyers should download the receipt and note down the reference number.

Pradhan Mantri Suraksha Bima Yojana (PMSBY Scheme) Claim Process 

The PMSBY claim process involves five steps, and policyholders should understand them in detail. 

• Step 1: A nominee should inform the bank about the accident immediately 
• Step 2: In the second step, one should get the PMSBY claim form from the designated bank or the company’s website. He/she must complete the form and submit the same to the bank either in person or online within 30 days of the accident. They should consider submitting the form along with the FIR report, post-mortem report, and death certificate if needed.
• Step 3: The bank will verify the documents provided by a nominee and forward the same to the insurance company within 30 days of submission. 
• Step 4: The insurance company will process the claim form within 30 days after receiving documents from the bank. 
• Step 5: An insurer will deposit the amounts into the nominee’s bank account bank. The company may pay the amount to a legal heir when a policyholder has not appointed a nominee in the plan.