Pradhan Mantri Suraksha Bima Yojana
Here we are providing all the details related to PM Suraksha Bima Yojana. The new budget 2015-16 is being welcomed by the entire country in many ways as there are numerous welfare schemes related to specific group of society that have been launched under the budget. One such welfare scheme with a special cause is Pradhan Mantri Suraksha Bima Yojana.
Prior to this scheme, Pradhan Mantri Jan Dhan Yojana cited tremendous popularity across the length and breath of the country with millions of people getting their saving accounts activated with zero balance. It ensured that there should be a saving account for all and even the poorest of poor should have a medium to manage and grow their money.
Note :- Just got an email from Bank that PMSBY has been started and The insurance cover will start from 01.06.2015 to 31.05.2016 and will be required to be renewed every year.
While the former focused mainly on savings, Pradhan Mantri Suraksha Bima Yojana (PMSBY) emphasizes that every individual in the country should have atleast one life insurance with a minimal annual premium. This insurance for all scheme, would be linked to the previously launched PM Jan Dhan Yojana.
Who is eligible?
Any Indian citizen within the age group of 18 to 70 years and having a bank account under Pradhan Mantri Jan Dhan Yojana is eligible to avail this insurance scheme. It is noteworthy here that this insurance scheme is linked to PMJDY and all who have already an account under the previous scheme are eligible.
One of the key requirements for availing this scheme facility is to have an Aadhar number. Those interested to enroll for the scheme would have to link their Aadhar number with their bank account, after which they would be asked to fill a form every year and submit it to bank officials before 01st June of every year. This implies that the scheme will have to be renewed every year to make sure that the person covered under this scheme is alive or dead.
Is Nomination possible?
Yes, just like any other insurance scheme, the person getting insured can nominate anyone in the form and will have to reveal his or her relation to the nominee. In cases where the nominee is a minor, the form would ask for a guardian of the nominee, which would have to be mentioned in the form.
What would be the annual premiums?
This is one of the most flexible and affordable insurance schemes prevalent in India so far. Since Pradhan Mantri Suraksha Bima Yojana caters to the lower sections of society, the insurance premiums have been made quite affordable, so much so that the minimum premium per year could be as low as Rs 12, i.e. just Rs 1 per month.
This is first such move by the government wherein anyone who can afford just few Rupee per annum will have his or her life insured.
Modes of Premium Payment ?
Since the Pradhan Mantri Suraksha Bima Yojana would be linked to bank account of the person getting insured, the only mode of payment of the premium would be auto – debit from the saving account. No other mode of payment for the premium is permissible, as of now.
What is the Risk Coverage under Pradhan Mantri Suraksha Bima Yojana?
There are mainly two kinds of insurance covers that PMSBY offers:
- Risk cover of Rs 2 lakh in case of full disability of accidental death
- Risk cover of Rs 1 lakh in case of partial disability arising out of accident or illness
This implies that anyone covered under this scheme would be covered with life insurance of Rs 2 lakh and for an equal amount in case of full disability.
It is to be noted here that those living below poverty line in most of the parts of the country have not even heard of life insurance and in such a situation, this kind of government backed scheme would give a decent level of financial independence to the poor in the country and would thus alleviate the overall financial health of the nation in real terms.
Risk Coverage Terms
To provide both financial flexibility and automation at the same time, this scheme offers two options for getting the risk coverage:
Yearly Renewal Option: under this option, the policy holder would be required to visit the bank every year to fill the form and renew the scheme every year in order to continue the policy further. That means, every year the policy holder would authorize bank to auto – debit the premium from their account.
Long Term Renewal Option: the scheme provides a long term renewal option, in which if the policy holder likes to subscribe for the policy for a longer period of say 2 to 4 years, would have to mention the duration in the form so that an auto – debit of the premium amount is made from the policy holder’s account regularly.
Whom to approach ?
Any public sector company dealing in general insurance such as Life Corporation of India would offer this scheme. Since, the scheme is fairly new, we expect that the list of banks dealing with this scheme would soon be published.
What is the contribution by the government ?
There is a lot of unclaimed money in many public welfare funds of the government of India. Such money would be pooled in to back this scheme. The amount of contribution from the government would be decided and revised every year.
What tax benefits?
There are no tax benefits attached with this PM Suraksha Bima Yojana. Rs 12 in a year in a way wont even matter much.
Overall, this scheme, as we expect may turn the face of financial independence of a lot many families living below poverty line in India. However, it is not the policies that do much good to the masses. It is proper and strict implementation of such policies that would make all the difference. How it actually does is something we need to wait and watch.
Difference between Pradhan Mantri Suraksha Bima Yojana and Pradhan Mantri Jeevan Jyoti Bima
|Key points||Pradhan Mantri Suraksha Bima Yojana||Pradhan Mantri Jeevan Jyoti Bima Yojana|
|Premium amount||Rupees 12 per year||Rupees 330 per year|
|Coverage Rules||Accidental coverage ( 2 lakh full or 1 lakh partial)||Death Coverage (accidental or normal)|
|Age Limit||18 Years or more||Between 18 to 50 years|
|Coverage Period||No time limit||Till 50 years of age|
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- Impact of Increased Service Tax
- Benefit to Middle Class in Budget 2015-16
- All Modi Yojana