As a step towards social secuirty at a nominal cost to the millions of countrymen, The worthy Prime Minister of India Sh. Narinder Modi Ji has launched a "Pradhan Mantri Suraksha BimaYozna” which provide accidental insurance to individual in any unfortunate event causing death or disability of the policy holder. This scheme is designed to provide utmost convenience with auto debit facility from the bank account of subscriber.
The Fatehgarh Sahib Central Coop. Bank Ltd., Sirhind has also implemented this scheme for its valuable customers and other eligible persons through all its 25 branches across the district from 1st June 2015.
The scheme will be administered by bank and be guided by the scheme rules as specified by the Govt. of India from time to time. At present last date for enrolment is upto 31stMay 2016.
In brief the scheme is as follows:
Age at Entry
Min: 18 years (Age last birthday)
Max: 70 years (Age nearest birthday)
Maximum Maturity Age
70 years (Age nearest birthday)
One year renewable
In the event of death or disability due to accident of the insured member during the period of cover, the sum assured will be paid Rs.2.00 lacs in case of death and Rs.1.00 lacs in case of disability.
The death benefit for a member under Pradhan Mantri Suraksha BimaYojana cannot exceed Rs. 200,000 even in case the member is covered through multiple bank accounts or through multiple insurers. In such an event, the claim will be payable for the first application (based on the date of enrolment) and the premium on the subsequent covers is liable to be forfeited.
Maturity/ Surrender Benefit:
There is no maturity or surrender benefit under this plan.
The policy commencement date is 1st June, 2015 and the period of initial cover will be up to 31st May 2016. Thereafter, the cover can be renewed on the 1st of June every year by debiting the premium to your bank account. The premium amount of Rs.12/- is payable for the cover period of 1st June to 31st May. This premium is subject to change as specified by the Government of India from time to time.
In case members wish to join the scheme post policy commencement date, he/ she can do so with the payment of full year’s premium and submission of self certificate of good health. The enrolment rules would be as specified by the Government of India from time to time.
Income Tax benefits/exemptions are as per the applicable income tax laws in India, which are subject to change from time to time. Please consult your tax advisor for details
FAQs on PRADHAN MANTRI SURAKSHA BIMA YOJANA (PMSBY)
Q1. What is the nature of the scheme?
The scheme is a one year cover Personal Accident Insurance Scheme, renewable from year to year, offering protection against death or disability due to accident.
Q2. What would be the benefits under the scheme and premium payable?
The benefits are as follows:
Table of Benefits
Sum Insured Rs. 2 Lakh
b) Total and irrecoverable loss of both eyes or loss of use of both hands or feet or loss of sight of one eye and loss of use of hand or foot
Sum Insured Rs. 2 Lakh
c) Total and irrecoverable loss of sight of one eye or loss of use of one hand or foot Sum Insured
Sum Insured Rs. 1 Lakh
Premium payable is Rs.12/- per annum per member.
Q3. How will the premium be paid?
The premium will be deducted from the account holder’s bank account through ‘auto debit’ facility in one instalment, as per the consent to be given on enrolment. Members may also give one-time mandate for auto-debit every year till the scheme is in force, subject to re-calibration that may be deemed necessary on review of experience of the scheme.
Q4. Who will offer / administer the scheme?
The scheme is offered / administered through the National Insurance Company Ltd. .
Q5. Who will be eligible to subscribe?
All individual (single or joint) bank account holders in the age 18 to 70 years in participating banks will be entitled to join. In case of multiple bank accounts held by an individual in one or different banks, the person would be eligible to join the scheme throughone bank account only.
Q6. What is the enrolment period and modality?
Initially on launch for the cover period from 1st June 2015 to 31 st May 2016 subscribers were expected to enrol and give their auto-debit option by 31st May 2015, which has been extended up to 30th september 2015. Enrolment subsequent to this date may be possible prospectively on payment of full annual payment, subject to conditions that may be laid down.
Subscribers who wish to continue beyond the first year will be expected to give their consent for auto-debit before each successive May 31st for successive years. Delayed renewal subsequent to this date may be possible on payment of full annual premium, subject to conditions that may be laid down.
Q7. Can eligible individuals who fail to join the scheme in the initial year join in subsequent years?
Yes, on payment of premium through auto-debit. New eligible entrants in future years can also join accordingly.
Q8. Can individuals who leave the scheme rejoin?
Individuals who exit the scheme at any point may re-join the scheme in future years by paying the annual premium, subject to conditions that may be laid down.
Q9. Who would be the Master policy holder for the scheme?
Banks will be the Master policy holders. A simple and subscriber friendly administration & claim settlement process has been finalized by National Insurance Company in consultation with the bank.
Q10. When can the accident cover assurance terminate?
The accident cover of the member shall terminate / be restricted accordingly on any of the following events:
i. On attaining age 70 years (age nearer birth day).
ii. Closure of account with the Bank or insufficiency of balance to keep the insurance in force.
iii. In case a member is covered through more than one account and premium is received by the insurance company inadvertently, insurance cover will be restricted to one account and the premium shall be liable to be forfeited.
Q11. What will be the role of the insurance company and the Bank?
i. The scheme will be administered by PSGICs or any other General Insurance company which is willing to offer such a product in partnership with a bank / banks.
ii. It will be the responsibility of the participating bank to recover the appropriate annual premium in one instalment, as per the option, from the account holders on or before the due date through ‘auto-debit’ process and transfer the amount due to the insurance company.
iii. Enrolment form / Auto-debit authorization / Consent cum Declaration form in the prescribed proforma shall be obtained, as required, and retained by the participating bank. In case of claim, PSGIC / insurance company may seek submission of the same. PSGIC / Insurance Company also reserve the right to call for these documents at any point of time.
Q12. How would the premium be appropriated?
a. Insurance Premium to PSGIC / other insurance company: Rs.10/- per annum per member;
b. Reimbursement of Expenses to BC/Micro/Corporate/Agent : Rs.1/- per annum per member;
c. Reimbursement of Administrative expenses to participating Bank: Rs.1/- per annum per member.
Q13. Will this cover be in addition to cover under any other insurance scheme the subscriber may be covered under?
Q14. Does the PMSBY cover death / disability resulting from natural calamities such as earthquake, flood and other convulsions of nature? What about coverage of suicide / murder?
Natural calamities being in the nature of accidents, any death / disability (as defined under PMSBY) resulting from such natural calamities is also covered under PMSBY. While death due to suicide is not covered, that from murder is covered.
Q15. Can all holders of a joint bank account join the scheme through the said account?
In case of a joint account, all holders of the said account can join the scheme provided they satisfy its eligibility criteria and pay the premium at the rate of Rs.12 per person per annum through auto-debit.
Q16. Which Bank Accounts are eligible for subscribing to PMSBY?
All bank account holders other than institutional account holders are eligible for subscribing to PMSBY scheme.
Q17. Are NRIs eligible for coverage under PMSBY?
Any NRI having an eligible bank account with a bank branch located in India is eligible for purchase of PMSBY cover through this account subject to fulfilment of the terms and conditions relating to the scheme. However, in case a claim arises, the claim benefit will be paid to the beneficiary/ nominee only in Indian currency.
Q18. Is there any provision for reimbursement of hospitalisation expenses following accident resulting in death or disablement?
Q19. Who can claim insurance benefit in case of death of the bank account holder who gave the enrolment form?
In case of death of the Account holder who enrolled in the scheme, claim can be filed by the nominee/appointee as per the enrolment form or by the legal heir/s in case there is no nomination made by the subscriber bank account holder.
Q20. What is the mode of payment of the claim amount?
Disability Claim will be credited in the bank account of the insured bank account holder. Death claims will be remitted to the bank account of the nominee / legal heir(s).
Q.21. Will the family get insurance benefit if the account holder commits suicide?
Q.22. Is it necessary to report accidents to Police and obtain FIR for claiming benefits under the policy?
In case of incidents like Road, Rail and similar vehicular accidents, drowning, death involving any crime etc, the accident should be reported to police. In case of incidents like snake bite, fall from tree etc, the cause should be supported by immediate hospital record.
Q.23. If the insured is missing and death is not confirmed, will the legal heirs get benefit of insurance?
Insurance benefit will be paid after death is confirmed, or on expiry of the period specified by law to presume death, that is seven years.
Q.24. What benefit will be payable if a person suffers partial disability without irrecoverable loss of sight of one eye or loss of use of one hand or foot?
No benefit will be payable.
Q.25. Can an Account holder get claim from more than one bank where he has enrolled and premium has been debited?
No. The insured/ Nominee shall be eligible for one claim only.