Pradhan Mantri Suraksha Bima Yojana: Affordable Life Insurance for All
New Delhi: In a bid to extend the reach of life insurance coverage to the vulnerable sections of the population, the Indian government introduced the Pradhan Mantri Suraksha Bima Yojana (PMSBY) in May 2016.
This visionary scheme, inaugurated by Prime Minister Narendra Modi, aims to provide financial security to those who need it most, and it’s proving to be a game-changer for millions across the nation.
The PMSBY offers life insurance coverage of up to Rs 2 lakh for a mere annual premium of Rs 20, which translates to less than Rs 2 per month. It’s an incredibly accessible program, as there is no requirement for a medical examination to enroll. Let’s delve into the key features of this initiative:
Financial Assistance for Accidents
Under the Pradhan Mantri Suraksha Bima Yojana, individuals and families can benefit in case of accidents. Here’s a breakdown of the coverage:
- Death Due to Accident: In the unfortunate event of the insured person’s death resulting from an accident, a sum of Rs 2 lakh will be provided to the nominee.
- Permanent Total Disability: If the insured person experiences permanent total disability due to an accident, such as the loss of both eyes, both hands, or both legs, they are eligible to receive a sum of Rs 2 lakh.
- Permanent Partial Disability: In the case of permanent partial disability caused by an accident, such as the loss of use of one eye, one hand, or one leg, the insurance scheme provides Rs 1 lakh in coverage.
Eligibility and Coverage Period
To take advantage of the Pradhan Mantri Suraksha Bima Yojana, applicants must be at least 18 years of age, with the upper age limit set at 70 years. The insurance coverage period runs for one year, from 1st June to 31st May.
Accessing the Benefits
The benefits of the PMSBY are accessible through public sector insurance companies or any bank branch where the applicant has an account. This inclusivity ensures that people from all walks of life can participate in this initiative.
Auto Debit Facility
To enroll in PMSBY, one must have a bank account. If someone possesses multiple bank accounts, they can choose one bank to avail of the benefits. On 31st May each year, a nominal premium of Rs 20 will be automatically deducted from the account through the ‘Auto Debit’ facility.
It’s important to maintain a sufficient balance to ensure policy renewal. In case of insufficient funds, the policy may be canceled but can be reinstated upon payment of the premium.
The enrollment period for Pradhan Mantri Suraksha Bima Yojana is from June 1 to May 31. In the unfortunate event of an accident, beneficiaries should file their claims within 30 days.
This successful initiative has already made a significant impact. Over 1,15,951 claims have been disbursed, amounting to a substantial sum of ₹2302.26 crore. This underscores the program’s importance and the relief it has provided to numerous families in their times of need.
The PMSBY is a commendable effort by the Indian government to make life insurance accessible and affordable for all. With its simplicity and inclusivity, it serves as a crucial safety net for the vulnerable sections of society, providing peace of mind in times of crisis.