PRADHAN MANTRI SURAKSHA BIMA YOJANA (PMSBY)

1. Context

The Pradhan Mantri Suraksha Bima Yojana (PMSBY) scheme is available to people of all income groups who are bank/ post office account holders and in the age bracket of 18 to 70 years. This was stated by Union Minister of State for Finance Dr Bhagwat Kisanrao Karad in a written reply to a question in Rajya Sabha recently.

2. Pradhan Mantri Suraksha Bima Yojana

A government-backed accident insurance scheme that covers accidental death, permanent disability, and partial disablement is provided by Pradhan Mantri Suraksha Bima Yojna.
It is eligible for individuals between 18 and 70 years to apply for this scheme.
This Indian government’s accidental scheme was announced during the 2015 budget. This scheme was granted to provide personal accident insurance to the high-risk section such as mechanics, labourers, and truck drivers which involves a lot of traveling.
It is also the cheapest insurance cover. It covers partial and permanent disabilities.
The age category between 18 and 70 must have a bank account. After excluding the service tax, the annual premium of the PMSBY will be Rs 12.
This premium amount is directly debited from the bank account of the scheme holder.
If the subscriber dies in an accident or if he is fully disabled Rs. 12 lakh is paid to the nominee and Rs.1 lakh is paid if the subscriber meets with an accident and suffers partial permanent disability.

3. Key features of the Pradhan Mantri Suraksha Bima Yojana:

Accidental Insurance Coverage

PMSBY offers accidental death and disability insurance coverage to its beneficiaries. In the unfortunate event of accidental death or permanent disability, the insured or their nominee receives the assured sum.

Affordable Premium

The scheme provides an affordable insurance premium, making it accessible to a vast section of the population, especially those belonging to the economically weaker sections of society.

Eligibility Criteria

There are some eligibility criteria for applying this scheme and these conditions are given down below.

The minimum age limit for applying is 18 years.
The maximum age limit for applying is 70 years.
Those who fall under this age criteria must have a savings bank account to subscribe to the policy.
The Aadhaar card must be linked to the bank account.
The Aadhaar card copy must be attached with the application form if it is not linked with the bank account.
He or she is only eligible to join the scheme through a single bank account if the individual has more than one savings account.
Rs 12 premium should be paid yearly.
The program is valid for a year and it needs to be renewed at the end of the year.
The applicant’s Aadhaar card is the primary KYC document required.

Enrollment Process

Interested individuals can enroll in the Pradhan Mantri Suraksha Bima Yojana through various participating banks. The enrollment can be done through a simple application process, and the premium amount is automatically deducted from the bank account of the insured.

Insurance Amount

The insurance coverage provided under the scheme is as follows:

Rs. 2 lakhs in case of accidental death.
Rs. 2 lakhs in case of total and irrecoverable loss of both eyes or loss of use of both hands or feet or loss of sight in one eye and loss of use of one hand or one foot.
Rs. 1 lakh in case of total and irrecoverable loss of sight in one eye or loss of use of one hand or one foot.

Term of Coverage: The coverage under PMSBY is for one year and needs to be renewed annually.

Renewal Process: Beneficiaries have the option to renew their enrollment in the scheme for subsequent years if they wish to continue availing of the insurance benefits.

4. Significance of Pradhan Mantri Suraksha Bima Yojana

The Pradhan Mantri Suraksha Bima Yojana (PMSBY) holds significant importance due to its potential impact on the lives of individuals, especially those from economically vulnerable sections of society. The scheme addresses various critical aspects, making it highly significant:

Financial Inclusion: PMSBY plays a crucial role in promoting financial inclusion by providing easy access to insurance coverage to a vast number of people, including those who may not have been able to afford insurance otherwise. It empowers individuals to secure their financial future in case of unforeseen accidents.
Affordable Coverage: The scheme offers insurance coverage at an affordable premium, making it accessible to a wide range of people across different income groups. This affordability factor ensures that more people can benefit from the scheme, enhancing its inclusivity.
Social Security: For many individuals, especially in rural areas, accidents can lead to financial hardships and even debt. PMSBY provides a safety net, offering financial security to the insured and their families in the event of accidental death or disability. This social security aspect is crucial for promoting a more stable and resilient society.
Economic Empowerment: By providing insurance coverage against accidents, PMSBY contributes to the economic empowerment of the insured and their families. It helps mitigate the financial burden that could arise from a sudden loss of income due to accidents.
Boosting Insurance Penetration: India historically had low insurance penetration, with a significant portion of the population being uninsured. PMSBY has helped increase insurance penetration by bringing more people under the insurance coverage umbrella, thereby contributing to the growth of the insurance sector.

For Prelims: Pradhan Mantri Suraksha Bima Yojana (PMSBY).

Previous year Question

1. Examine the following statements related to Pradhan Mantri Suraksha Bima Yojana (PMSBY) : (TSPSC GROUP 4)

A. The risk coverage of the scheme for accidental death or full disability is Rs. 2 lakh.

B. For partial disability, it is Rs 1 lakh.

C. The person under the age group of 18-70 years can avail the benefit of this scheme.

Choose the correct answer:

1. A, B, and C

2. A only

3. A and B only

4. B and C only

Answer: 1

Source: PIB

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