Pradhan Mantry Suraksha Bima Yojana: An Insurance at just Rs 12

Do you believe that? Insurance with a yearly premium of just ₹ 12.

Imagine if the monthly cost is just ₹ 1.

It 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 low-income people. The other 2 schemes are PMJJBY ( Pradhan Mantri Jivan Jyoti Bima Yojana) and APY (Atal Pension Yojana)

The scheme is offered through Public Sector 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 have the option of auto-renewal. If you prefer to pay manually, it can be arranged. But in this case, auto-renewal would be a better choice. 

The scheme is a government back insurance plan that is very convenient for persons who fall under the low-income group, whereas the facility can be availed of by an individual who is between the ages of 18 to 70 years. 

A person should have a single policy with his choice of bank. Having multiple policies in different banks might cause issues while making a claim. 

How to apply for PMSBY? 

You can apply for PMSBY through participating banks. Although the insurance scheme is offered and administered by PSGIC, its delivery is done by participating banks and the Post Office. These participating banks include both private banks and PSU banks, along with the Post Office. 

Popular among the banks are

State Bank of India, ICICI Bank Ltd. . HDFC Bank Ltd and other PSU banks. 

The facility can be applied by submitting a simple application form or you can apply online through the bank’s Internet banking. 

What it covers? 

PMSBY covers accidental death as well as permanent disability due to accidents. Insurance coverage is ₹   2 lacs for accidental death. The nominee or legal heir will get the benefit. 

After getting processed the fund will be credited to the nominee’s account. 

In case of permanent partial disability, the insurer will get ₹   1 lac in his account. Permanent partial disability includes permanent loss of an eye, one limb of a hand or a leg.

Details of PMSBYBenefits
Annual premium of ₹  12. In the case of total disability. 
Good coverageDecent coverage of ₹   2 lacs accidental death.
In the case 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 the loss of an eye or a hand or a foot.

How to get a PMSBY policy certificate?

You can get the PMSBY policy certificate either offline or online as well. Either your bank may provide you while enrolling on the scheme or you may get it instantly over the bank’s internet banking platform. The good news is if you missed out on getting the certificate earlier, you may get the certificate anytime.

How to claim? 

As soon as the occurrence of an accident results in death or total or partial permanent disability, the claimant which could be a nominee or appointee of the nominee or legal heir should proceed with the claim process preferably within 30 days of the occurrence of the 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 an accident. The supporting 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 the account passbook, statements of account, or cancelled cheque of the claimant/appointee/nominee.
Proof of the death of the nominee, if the nominee expired before the insured person. A death certificate might do the trick. 
Proof of legal heir, if there is no nominee for the insured person. Documents normally accepted for legal heirship are succession certificates or legal heir certificates 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 the PMSBY insurance scheme

The scheme is terminated under the following circumstances

  1. When the insured person attains the age of 70 years. 
  2. The underlying account is closed or has insufficient funds to keep the policy in force. 
  3. If the insured person has multiple policies with different banks. The insurer is getting multiple premiums from the same person might trigger the closure of the policy. 

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