The Indian government has declared Pradhan Mantri Suraksha Bima Yojana as one of the three social security programmes. PMSBY is an accidental insurance policy with annual renewal, offering insurance cover for accidental death and disability for one year.
This policy benefits the poor and low revenue section of society with the minimum INR 12/- premium rate per year. PMSBY offers the life insurance of INR 2 lakh for accidental failure, permanent full disability and INR 1 lakh for permanent partial disability.
Individuals in the 18-70 age group who have a participating savings bank account can apply to this PMBSY scheme. If you have more than one saving bank account, then you can use just one saving bank account to apply to the program. We briefly discussed the different aspects of the system in this post to help you understand more about the scheme –
What is covered under PMSBY Policy?
Under Pradhan Mantri Suraksha Bima Yojana, the beneficiary is given INR 2 lakhs death benefit in case of accidental death of the insured person. Furthermore, INR 2 lakh compensation is provided for a full disability, including irrecoverable or total loss of both eyes, or loss of use of hand and foot, paralysis, etc. The insured will get a life compensation of INR 1 lakh in the event of partial disability.
The coverage provided by PMSBY is a complement to any other insurance policy the subscriber has. Since this is a mere life insurance contract, there is no media-claim in the plan, i.e. it does not provide coverage of hospitalization costs incurred by accident.
Inclusion and Exclusion
The policy covers all deaths, accidents, and disabilities caused by natural disasters as defined by PMSBY policy. Furthermore, the program does not provide insurance cover against suicide, but the policy covers death as a result of murder. The insurance also does not offer any compensation in case of irreversible loss of eyesight loss of one hand or foot.
Eligibility criteria for PMSBY
Individuals in the age group of 18 to 70 are eligible to purchase PMSBY. Besides, NRI’s can also be part of the policy, as any claims should be reimbursed to the policy recipient in Indian money.
What to do to claim
It provides coverage of accidental death and disability that is confirmed through documented evidence. In case of accidental death of the insured individual, the accident should be reported to the police station and should be administered by immediate hospital records. The claim can be made by the insurance beneficiary identified by the insured as part of the registration form. In the case of an invalidity claim, the insured amount will be transferred to the bank account of the policyholder and the beneficiary will receive the death benefit amount in the event of death.
PMBSY scheme is one of the best social security programs with all these benefits and advantages that this program provides and with its low premium rates. It provides life insurance for those with lesser means without significant damage to their savings.
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