Narendra Modi government had launched many public welfare schemes in its first term. Two of these big plans were specifically designed keeping insurance cover in mind. The annual premium amount for both these insurance schemes was kept very nominal. One of these schemes is such that its annual premium is only Rs 20.
The name of this scheme is- Pradhan Mantri Suraksha Bima Yojana (PMSBY). In this scheme, by paying just ₹ 20 every year, you can get accidental cover up to ₹ 2 lakh. Let us know every small and big information related to this scheme in detail.
What is Pradhan Mantri Suraksha Bima Yojana (PMSBY)?
Pradhan Mantri Suraksha Bima Yojana (PMSBY) is a personal accident insurance scheme with a period of one year. It can be renewed every year. This plan primarily provides financial protection to the insured person and his family in the event of death or disability caused by an accident.
To avail the benefits of this scheme, any Indian citizen between the age of 18 years to 70 years can apply. The scheme is easily available to all those who have a savings account in any bank and who agree to join it and enable auto-debit facility from the account.
Know how much insurance cover is available?
Under this scheme, some of the insurance benefits available under different circumstances at the time of accident are as follows:
- Upon death: In case of death of the insured person due to an accident, the entire amount of ₹ 2 lakh is given to his nominee.
- Permanent Total Disability: An insurance benefit of ₹ 2 lakh is provided in case of complete loss of both eyes, complete loss of function of both hands or both legs, or loss of vision of one eye as well as loss of one hand or one leg due to accident.
- Partial Disability: In an accident, if the insured person completely loses the vision of one eye or suffers loss of one hand or one leg, then an insurance amount of ₹ 1 lakh is given.
Key features of PMSBY scheme
- Annual Premium: ₹20 per year.
- Period of Risk Cover: Valid for the period from 1st June to 31st May.
- Coverage Amount: ₹2 lakh in case of accidental death or total permanent disability and ₹1 lakh in case of partial disability.
- Renewal: It is mandatory to renew this scheme every year.
- How to apply: This insurance scheme can be availed through online or offline mode in any recognized (designated) bank.
- Payment Method: The premium amount is automatically deducted from the consumer/subscriber's bank account through auto-debit facility.
Insurance cover may stop in these situations
- When the scheme member completes the age of 70 years.
- If the bank or post office account linked to the scheme is closed or there is no sufficient balance in the account to deduct the premium amount of ₹ 20.
- If a member is mistakenly enrolled through more than one bank account and the premium is deducted multiple times, the total insurance benefit will still be limited to a maximum of ₹2 lakh only.
Available at a nominal annual cost of just ₹20, this accidental insurance cover can prove to be a vital financial support for a family in case of any unexpected accident.