What is Pradhan Mantri Suraksha Bima Yojana?

Pradhan Mantri Suraksha Bima Yojana is a social security scheme launched by the Government of India in the Union Budget of 2015. This scheme is a personal accident insurance scheme which compensates individuals in case of accidental deaths and disablements.


Salient features of Pradhan Mantri Suraksha Bima Yojana

The Pradhan Mantri Suraksha Bima Yojana scheme has the following notable features –

  • The tenure of coverage under the scheme is for one year. After the one year period is over, the coverage can be renewed
  • The policy does not cover health related expenses incurred when the insured is hospitalised after an accident. Only accidental death and disablement is covered.
  • A lump sum benefit is paid if the insured dies in an accident or suffers from permanent total disability or permanent partial disability
  • The coverage period starts from 1st June of every year and runs up to 31st May of the next year.
  • Policyholders who want to continue the coverage are required to give their consent for auto debit of the premium amount before 31st May
  • The benefit payable under the coverage of Pradhan Mantri Suraksha Bima Yojana would be in addition to any other health insurance or personal accident plan taken by the insured.

What is covered under the scheme?

The Pradhan Mantri Suraksha Bima Yojana covers the following contingencies –

  • Accidental death
  • Accidental permanent and total disability which would include total and irrevocable loss of both eyes, total and irrecoverable loss of both hands or both legs or total and irrecoverable loss of sight in one eye and use of one limb (hand or foot)
  • Accidental permanent and partial disability which would include total and irrecoverable loss of sight of one eye or loss of use of one hand or one foot.

An accident would be defined as a sudden, unforeseen and unexpected event which is caused by external, visible and violent means. Moreover, accidental deaths and disabilities arising out of natural calamities would also be covered under the scheme.

The extent of coverage would be INR 2 lakhs in case of accidental death and permanent total disability and INR 1 lakh in case of permanent partial disability.

Accidental death due to murder is also covered under the scheme of Pradhan Mantri Suraksha Bima Yojana.

Coverage would continue until the individual attains 70 years of age and if regular premiums are being debited from the bank account.


What is not covered under the Pradhan Mantri Suraksha Bima Yojana scheme?

Deaths which occur due to suicide are not covered. Moreover, in case of a disability, if there is no loss of eyes, hand or foot, the claim is not paid. If the scheme is subscribed through multiple bank accounts, the coverage would stop and the premiums paid would be forfeited.


Who are eligible to Pradhan Mantri Suraksha Bima Yojana the scheme?

To subscribe to the Pradhan Mantri Suraksha Bima Yojana, the following eligibility parameters should be fulfilled –

  • Individuals should have a bank account held individually or jointly
  • In case of multiple accounts, the Pradhan Mantri Suraksha Bima Yojana coverage would be available only in one account
  • All the account holders of a joint bank account can apply for the scheme
  • Individuals should be aged between 18 years and 70 years to be eligible to apply for the scheme
  • NRIs can also subscribe to the scheme. However, in case of claims, the claim amount would be paid to the nominee or beneficiary of the NRI in Indian currency only.

Premium of the Pradhan Mantri Suraksha Bima Yojana

The Pradhan Mantri Suraksha Bima Yojana is a very affordable scheme whose premiums are as low as INR 12 per annum per member. The premium is payable by the subscribing member through a direct debit done from his/her savings bank account. The debit should be done before 1st June to enjoy one year coverage from 1st June to 31st May. If the premiums are delayed, coverage would begin from the date the premium was debited from the insured’s account.

Premiums of the Pradhan Mantri Suraksha Bima Yojana are reviewable every year based on the claim experience under the scheme. However, the Government aims to maintain the premium at this level itself for at least the first three years of the launch of the scheme.


How does the Pradhan Mantri Suraksha Bima Yojana scheme work?

The scheme requires a bank account to work. Individuals having a bank account with any bank can subscribe to the scheme. Interested account holders of a bank would request the bank to subscribe to the scheme after which the bank would deduct the premium from the account holder's bank a/c. The premium would be paid to an insurance company chosen by the bank to provide coverage under the Pradhan Mantri Suraksha Bima Yojana. Public sector companies as well as other general insurance companies offer the scheme of coverage and the bank can choose any company for buying the coverage. The bank would be the master policyholder while the account holder would be the insured. The policy would run for one year after which it would be renewable.


How to apply for the Pradhan Mantri Suraksha Bima Yojana scheme?

Interested individuals can apply for the scheme by either

  • Filling up a form and submitting the form to their banks.
  • Through SMS
  • Through Net Banking Facility and
  • Also vie IVR in some commercial banks.

Apply to Pradhan Mantri Suraksha Bima Yojana visiting Bank Branch

In case, you choose to fill up the form and opt for the scheme by submitting the same to bank, follow the process mentioned below. The form is Available online.

applicationForm

Individuals should download the form from this website, fill it and submit it with their banks. The bank would then process the application and the coverage would be granted.

The Government has also given handy application form in various languages of India. Click below to download the application forms in different languages

There are other ways of applying for the scheme too. These include through SMS or through net banking facilities. The process of activating the coverage through SMS is as follows –


Apply to Pradhan Mantri Suraksha Bima Yojana through SMS Facility

  • The bank would send its customers a SMS to seek confirmation to subscribe to the coverage
  • Interested individuals should reply back to the bank writing ‘PMSBY Y’
  • Once the reply has been sent, an acknowledgement message would be sent back to the customer and the coverage would start
  • The details of the customer would be taken from his bank account records
  • If the customer’s nominee details are not maintained in the bank account, the coverage would not be allowed to commence. In that case the customer would have to update his nominee details and then apply for the coverage through the bank’s branches or net banking
  • If the auto debit of the premium amount required for the scheme is not processed because of insufficient funds in the bank account, the coverage would stop.

Apply to Pradhan Mantri Suraksha Bima Yojana through Net Banking Facility

If applying through net banking, the process is as follows –

  • The individual should log into his/her net banking account
  • The option of subscribing to PMSBY would be available on the home page
  • Choose the option and the bank account through which the premium should be deducted
  • The coverage amount, premium payable and the nominee details would be shown
  • There would be three declarations which the individual should click on. The declarations would be ‘Good Health Declaration’, ‘Terms and conditions/Scheme Details/FAQs’ and ‘I do not hold any other policy of the same’.
  • Then the individual should click ‘Continue’ wherein the individual would be directed to a page containing the details of the scheme and registration
  • If the individual confirms the details, he/she should select ‘Confirm’ at the end of the screen
  • An acknowledgement letter would be shown containing a unique reference number. This form should be downloaded and preserved for future use.

How to make a claim under the Pradhan Mantri Suraksha Bima Yojana scheme?

In case of accidents like road or rail accidents, death due to a crime, etc. a police report should be filed. Other accidental cases like a fall, animal bite, etc. do not require a police report. In these cases the hospital reports and treatment records should be submitted. In case of death of the insured member, the nominee should file a claim in a prescribed claim form which is available on the Government Website . The form looks like this –

  • The claim form should be submitted within 30 days of the accidental death or disability.
  • Once the form is submitted, the bank would verify the claim, account details, nomination details and the premium which have been paid for the scheme so far.
  • Once the details are verified, the bank would send the claim form to the insurance company within 30 days.
  • As soon as the insurance company receives the claim form, it would verify the claim and process it within 30 days of receiving the form.
  • Once verified, the claim amount would be paid by the insurance company.

Disability claims are paid to the bank account of the insured member. However, in case of death claims, the account of the nominee or legal heir is credited with the claim amount. If the nominee has collected the claim, he/she would be required to pay the claim to the legal heirs of the deceased after the legal heirs submit the Succession Certificate and the Legal Heir Certificate which have been issued by a court of law. The Government has also given handy claim form in various languages of India. Click below to download the claim forms in different languages


The documents which are required for death claim includes –

  • Police FIR, depending on the nature of the accident
  • Death certificate for making death claims
  • Post mortem report for death claims
Documents required for disability claims includes -
  • Police FIR or Panchnama, depending on the nature of the claim
  • Disability certificate which should be issued by a civil surgeon
  • Discharge certificate issued by the hospital in a prescribed format

Implementation of the Pradhan Mantri Suraksha Bima Yojana scheme

Enrolment under the scheme was started from 1st May 2015 and the scheme was officially launched by the Prime Minister on 9th May, 2015. By 9th May, more than 4.4 crore individuals were subscribed under the scheme.

By 30th May, the number reached 7.29 crores and by 18th June 2015, it was 7.68 crores and growing. As on 14th May, 2018, more than 13.53 crore individuals had joined the Pradhan Mantri Suraksha Bima Yojana scheme. On an average, 1.5 lakh people joined the scheme on a weekly basis.

The Government aims to cover the maximum number of individuals under the scheme and so the scheme has been widely publicized. Moreover, IT enabled application process is being promoted so that individuals can easily apply for the scheme and enjoy the coverage. Since the premiums are affordable, the scheme is suitable for all and the Government has its eyes set on promoting the opening of bank accounts and insuring individuals under the scheme.


Frequently Asked Questions (FAQs)

The individual who subscribes to the scheme is required to pay the premiums of the scheme.


What if the premium is not debited within 1st June?

If the premium is not debited within 1st June, the coverage would not start. Coverage would start from the month following the date when the premium is debited from the bank account.


Can I exit the scheme?

Yes, individuals who want to exit the scheme can do so by requesting their bank and removing the facility of auto debit for payment of premium.


Can I re-join the scheme later on after I exited?

Yes, individuals can re-join the scheme whenever they want by filling up the application form and paying the required premium through auto debit from their bank account.


In whose name is the insurance policy under the scheme is issued?

The insurance policy is issued in the name of the bank wherein the individual has an account. The bank is, therefore, the master policy holder under the Pradhan Mantri Suraksha Bima Yojana scheme.


Can the coverage under the scheme stop?

Yes, coverage under the scheme stops in certain instances. These instances include the following –

  • When the insured reaches 70 years of age
  • If the premium cannot be debited due to insufficient balance in the account
  • If the scheme is subscribed through more than one bank account
  • In case the insured voluntarily exits from the scheme.

Where can I refer for queries or information required on Pradhan Mantri Suraksha Bima Yojana?

The government on its website for Pradhan Mantri Suraksha Bima Yojana has given the list of state wise toll free numbers by calling upon which the investor can seek for information regarding PMSBY.

Pradhan Mantri Suraksha Bima Yojana was launched as one of the three important schemes introduced by the government in Budget 2015. Where this scheme provides accidental disability and death benefits to the insured ata very nominal cost, then introduced Atal Pension Yojana provides retirement security to the covered.

Read more insights about the Atal Pension yojana.