PM Suraksha Bima Yojana
It’s alarming to know that only 20% of India's population has any kind of insurance as of May 2015. Although statistics say that India is one of the biggest platforms for insurable people given its huge population, the actual numbers are quite depressing. It is not that insurance industry is penetrating on a slow rate, but it is an upsetting fact that the people are not being covered under any of the health insurance or accidental insurance programs to offer them quality health care irrespective of their financial status. Hence, the government of India took these numbers seriously and launched the Pradhan Mantri Suraksha Bima (PMSB) with a vision of bringing majority of the population under the shadow of a shady tree named insurance. Targeting under privileged population mainly, the scheme aims to pull people under the insurance coverage for a throw away price.
Pradhan Mantri Suraksha Bima Yojana Scheme
- PMSB is designed to be an annual insurance plan to be renewed every year. It mainly covers accidental deaths and disabilities caused due to accidents.
- Public sector general insurance companies and the general insurance companies which are keen on offering the plan on the same terms inclusive of the required terms and conditions tie up with the banks for executing this plan.
- The government has set the participating banks free to tie up with any insurance companies of their choice for the implementation of the scheme to its customers.
Range of Coverage
This plan is applicable to all individuals aging between 18 and 70 years who are the account holders of savings bank accounts of the participating banks and that through only one account irrespective of having multiple accounts. Aadhar card would be the prime KYC requirement for this plan.
As stated earlier, this is an annual plan and is in stretch between 1st June of 2018 to 31st May of 2019.
Features of the PMSB plan:
- Insurance coverage worth Rs.2,00,000 for death
- Disabilities such as loss of both eyes or hands or feet or partial loss of eyes, hand or foot also will get coverage for Rs.2,00,000
- The beneficiary gets Rs.1,00,000 for total and irrecoverable sight loss for one eye or hand or foot
- Insurance premium as low as Rs.12 per year per member and this will be automatically deducted from the beneficiary’s savings bank account without having to make an effort to pay on time.
- Like every other insurance plan, the Pradhan Mantri Suraksha Bima would have a premium review based on the claims submitted.
- Unforeseen adversities such as extreme losses caused by huge natural calamities are barred and the probabilities are higher that the premium won’t be increased in the first three years.
- Any account holder of the savings bank account of the banks participating in the PMSB aged between 18 and 70 years are eligible and should give consent for the auto-debit of Rs.12 of the premium from their savings account.
- The banks participating in this scheme form the Master Policy Holder on behalf of the subscribers. Since, the general insurance companies are involved in consultation with the participating banks in this process, the subscribers can witness a user- friendly claim processing and settlement.
Termination of Insurance Coverage
In special circumstances stated in the following, the insurance coverage would be terminated, and the subscribers won’t be benefitted under the scheme.
- On reaching 70 years of age
- Closure of the savings bank account
- Insufficient funds for Rs.12 for auto-debit as premium
- Coverage from multiple accounts would result in the policy being restriction of the policy to only one account and the premium received through the other accounts shall be deemed as forfeited
If the insurance coverage is terminated due to a technical glitch in the system which is proved eventually, the coverage and account will be reinstated accordingly on the full payment of premium. However, risk coverage will be paused, and the insurance company is the sole authority to terminate it or reinstate it depending on the actual facts. The insurance companies get the premium amount once the participating banks collect the money from the auto-debit feature on the savings bank accounts of the subscribers and this usually happens in the month of May every year.
Administration of the PMSB Scheme
- The insurance company will administer the scheme as per the stipulated operating procedures laid down for the scheme and the data Performa will be given separately along with the data flow process.
- The participating bank takes the responsibility of collecting annual premium of Rs.12 from the subscribers. It in turn remits the amount to the respective insurance companies.
- The participating bank obtains the authorization for auto-debiting the premium amounts and retains the authorization. If a claim needs to be submitted, the authorization certificate should be handed over to the insurance company. The company has the right to seek the documents of Pradhan Mantri Suraksha Bima at any time following a necessity.
The government of India is planning to promote this scheme to the rural as well as under privileged urban masses to make them opportune with a splendid accidental insurance scheme for which the premium is just nominal and is in reach of an absolute common man. The participating banks also have listed the details of the scheme on their respective websites to create awareness across their clientele and to increase the buzz or activity on their sites with pitter patter of millions of clients looking forward to get benefitted from the plan. Hope this project would fetch the underprivileged Indian masses and bring them all under the insurance coverage.
Note* Explore more articles and information on health insurance at RenewBuy.