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Pradhan Mantri Suraksha Bima Yojana – Accident insurance for the masses

Pradhan Mantri Suraksha Bima Yojana is a watershed for insurance in India and targeted towards that population which remained away from insurance cover for decades. It is an accident insurance cover backed by the Government of India aimed at ease of enrolment and affordable premium.

Just an Aadhar number is required to enrol for PM Suraksha Bima Yojana

Features of Pradhan Mantri Suraksha Bima Yojana

  • Scheme is available to people between the age of 18 to 70 years.
  • Main eligibility of this scheme is that a person should be a savings bank account holder.
  • Only Aadhar number is required for enrolment.
  • Annual scheme covering the period between 1st June to 31st May.
  • Premium of ₹ 20 per annum is auto-debited from the policy holder’s saving bank account.
  • Risk coverage of ₹ 2 lakh for death or permanent disability and ₹ 1 lakh for partial disability.

Annual Premium of ₹ 12 gives a risk cover of upto ₹ 2 lakh in case of death or disability

History of the scheme

PMSBY was announced as a part of three schemes in the Budget of 2015. These schemes were targeted towards the poor and under-privileged to create a universal social system. PMSBY was launched the same year on 9th May. Initially the scheme was linked to all banks accounts opened under Pradhan Mantri Jan Dhan Yojana. Later all saving bank account holders could avail this scheme.

The scheme was further made user friendly by allowing enrolment by net-banking and SMS.

Performance of PMSBY

Considering the vast population of the country, this scheme was bound to garner enough subscribers. Enrolment reached 10 crore the same year it was launched. By 2021, this number doubled to almost 23 crore. 45 thousand claims were disbursed.

Auto-debit facility and enrolment by net-banking is making PMSBY popular

Notable points of the scheme

  • Disability or death caused by natural calamities is covered under this scheme. However, death due to self injury or self inflicted is not covered.
  • Since it is an annual scheme, one can join or leave it any time.
  • PMSBY is linked with Aadhar number, hence one person can avail this insurance only with one bank or branch.
  • Ease of enrolment and payment of premium is what is attracting people to this scheme.
  • Disbursement will be paid out the saving account of the policy holder from which the premium was being paid. That amount can be withdrawn by the nominee.

As part of social responsibility encourage people around you like maids and drivers to enrol for PMSBY

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