Insurance plays a crucial role in providing financial security in times of unexpected events, such as accidents or illnesses.
While many are familiar with health or life insurance, accidental insurance is often overlooked. However, it’s equally important for ensuring financial protection.
For those with limited financial means, the government offers affordable options like the Pradhan Mantri Suraksha Bima Yojana (PMSBY), which provides accidental insurance coverage of up to Rs 2 lakh for just Rs 20 annually.
What is Pradhan Mantri Suraksha Bima Yojana (PMSBY)?
PMSBY is a government-backed accidental insurance scheme designed to offer affordable protection to the masses, particularly the financially disadvantaged.
It provides a coverage amount of Rs 2 lakh in case of accidental death or disability. The annual premium for this scheme is only Rs 20, making it highly affordable and accessible to everyone.
Who Can Avail the Benefits?
Age Eligibility: The scheme is available to people between 18 and 70 years of age. If a person turns 71, they will no longer be eligible for the scheme.
Required Account: The applicant must have an active savings account, as premiums are automatically deducted from the account. If the account is closed, the insurance policy will lapse.
Accidental Benefits Under PMSBY
The scheme offers the following benefits:
Accidental Death: In the event of accidental death, the nominee will receive Rs 2 lakh.
Complete Disability: If the insured person suffers from complete disability (e.g., loss of both eyes, hands, or feet), a compensation of Rs 2 lakh will be provided.
Permanent Partial Disability: In case of partial disability (e.g., loss of one eye or one limb), the beneficiary will receive Rs 1 lakh.
Key Terms and Conditions of PMSBY
Premium and Coverage: The annual premium of Rs 20 is valid for one year. The policy needs to be renewed annually.
Eligibility: The applicant must be between 18 and 70 years old and must be an Indian citizen.
Automatic Premium Deduction: The premium is auto-debited from the applicant’s savings account, so the candidate must sign a consent form to allow the deduction.
Scheme Lapse: If the applicant’s savings account is closed, the policy will be canceled.
How to Apply for PMSBY?
To enroll in the PMSBY, follow these simple steps:
- Visit your bank’s branch or use their internet banking portal.
- Register for PMSBY by providing your details and signing the consent form.
- The premium amount will be auto-debited from your savings account each year.
In summary, the Pradhan Mantri Suraksha Bima Yojana is a highly affordable and beneficial scheme, offering financial protection against accidental death or disability.
With an annual premium of just Rs 20, it provides coverage of up to Rs 2 lakh—a great option for ensuring peace of mind for you and your family.
