Do you believe that? An insurance with a yearly premium of just ₹ 12. Monthly cost is just ₹ 1. Sounds great but do you know what it offers to the insurer?
Well, we will look into it and see if it really is an exceptional insurance product. So what is PMSBY?
What is PMSBY?
Pradhan Mantri Suraksha Bima Yojana- PMSBY is one of the 3 social security schemes launched by our honourable Prime Minister for the low income group people. The other 2 scheme being PMJJBY ( Pradhan Mantri Jivan Jyoti Bima Yojana) and APY (Atal Pension Yojana).
The scheme is offered through Public Sectors General Insurance Companies (PSGIC) and other insurance companies.
The scheme gives you an accidental insurance cover of ₹ 2 lacs at the expense of just ₹ 12 per year as an annual premium.
You will get the options of auto renewal. If you prefer paying manually it can be arranged. But in this case, auto renewal would be a better choice.
The scheme is a government back insurance plan which is very convenient for person falls under low income group whereas the facility can be availed by an individual who is between the age of 18 to 70 years.
A person should have a single policy of his choice of bank. Having multiple policies in different bank might give issues while making a claim.
How to apply?
You can apply PMSBY through participating banks. Although the insurance scheme is offered and administered by PSGIC, the delivery of the scheme is done by participating banks and Post Office. These participating banks include both private banks and PSUs banks along with Post Office.
Popular amongst the banks are
HDFC Bank Ltd and other PSU banks.
The facility can be applied by submitting a simple application form or you can apply online through bank’s internet banking.
What it covers?
PMSBY covers an accidental death as well as permanent disability due to accident. Insurance coverage is ₹ 2 lacs for accidental death. Nominee or legal heir will get the benefit.
After getting processed the fund will be credited to nominee’s account.
In case of permanent partial disability the insurer will get a ₹ 1 lac in his account. Permanent partial disability includes permanent lost of an eye, one limb of hand or leg.
| Details of PMSBY | Benefits |
|---|---|
| Annual premium of ₹ 12. | Annual premium is too low to be true which gives immense popularity. |
| Good coverage | Decent coverage of ₹ 2 lacs accidental death. |
| Incase of total disability. | Total disability due to accident covers ₹ 2 lacs. Total disability means loss of both eyes, loss of both hands or feet, loss of one eye and one hand or leg. |
| For partial disability. | Permanent partial disability covers ₹ 1 lac. Partial disability includes loss of an eye or a hand or a foot. |
How to get PMSBY policy certificate?
You can get the PMSBY policy certificate either offline or online as well. Either your bank may provide you while enrolling the scheme or you may get it instantly over bank’s internet banking platform. The good news is if you missed out getting certificate earlier, you may get the certificate anytime.
How to claim?
As soon as the occurrence of accident which results to death or total or partial permanent disability, the claimant which could be a nominee or appointee of nominee or legal hier should proceed the claim process preferably within 30 days of the occurence of accident.
If the nominee is minor, the appointee of the nominee should initiate the claim process in favor of the nominee.
Required documents to be furnished to your bank or post office are as under.
| Required documents to claim PMSBY |
|---|
| Proof of total/partial disability or death due to accident. The supportive documents can be an FIR, Post Mortem report, death certificate issued by the registrar of births and deaths appointed by the government of specific areas and doctor’s certificates such as discharge certificates. |
| Adhaar card and PAN card of the insured person and claimant/nominee/appointee. |
| KYC documents of the nominee/appointee/claimant. Normal KYC as per RBI guidelines. |
| A copy of account passbook or statements of account or cancelled cheque of the claimant/appointee/nominee. |
| Proof of death of nominee, if in case nominee expired before insured person. Death certificate might do the trick. |
| Proof of legal heir, if in case there is no nominee of the insured person. Documents normally accepted for legal heir is succession certificate or legal heir certificate issued by the competent court or authority. |
| Advance receipt of discharge of claim duly filled in and signed. |
The claim settlement period is within 7 days. The claimed money will be paid to the beneficiary within the prescribed settlement period.
Termination of PMSBY insurance scheme
The scheme is terminated under the following circumstances
- When the insured person attain the age of 70 years.
- The underlying account is closed or having insufficient fund to keep the policy in force.
- If the insured person is having multiple policy with different banks. The insurer is getting multiple premium of the same person might trigger closure of the policy.
Reading your article helped me a lot and I agree with you. But I still have some doubts, can you clarify for me? I’ll keep an eye out for your answers.
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