PM SURAKSHA BIMA YOJANA

The Government of India has come up with several schemes for the welfare of society and people to ensure the comfort and security of people. Different schemes are brought to force to mitigate various public issues and help people live their lives in a healthy, safe, and financially stable environment for all. One such scheme that came into existence in May 2015 is the PMSBY scheme.

The Pradhan Mantri Suraksha Bima Yojana is a one-year scheme started by the Government of India, which is renewable each year. An Accident Insurance Scheme offers cover for death in case of accidental death or disability condition due to an accident. The scheme is administered through the Public Sector General Insurance Companies (PSGICs) and other General Insurance companies ready to offer insurance that complies with the terms of this scheme. The PSGICs need the necessary approvals and tie-ups with other banks to serve the purpose. The participating banks are entitled to be free to engage with any such insurance company willing to implement and get the scheme in force for their subscribers. The scheme can be accessed and is functional for all individuals between 18 to 70 years of age, holding a savings bank account in any of the participating banks. If the individual has several savings bank accounts in one or more banks, he or she will be allowed to join the scheme only through one savings bank account. Aadhar card is the main requirement for KYC completion for the bank account. 

The cover for an individual associated with this scheme will extend up to a year, starting from 1st June to 31st May. With the help of the option, join/pay by auto-debit from the designated savings bank account of the holder on the prescribed forms, which would be required to be submitted by 31st May every year. The period can be extended up to 31st August in the initial year. Initially, after the scheme launches, the period for joining can be extended up to 30th November as and when administered by the Government of India, which is for another three months. Also, joining subsequently by paying the full annual premium can only be possible under some specified clauses and conditions. The applicants can also give an indefinite or a longer option for the enrolment or the auto-debit, which will be decided in case of continuation of the scheme as per terms that can be revised based on the applicant’s experience. There is flexibility in joining and exiting the PM Suraksha Bima Yojana. Those who choose to leave the scheme earlier have full liberty to re-join the scheme at any point convenient for them in the future with the help of the above modality. New entrants in the scheme or ones currently eligible who, due to some reason, could not join earlier also have the freedom to join in the upcoming years while the scheme continues.      

Some benefits that the subscribers can enjoy after signing up for this scheme include an amount of Rs. 2 lakhs can be claimed in case of death, in cases like 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, a sum of Rs. 2 lakhs can be claimed. In addition, a sum of Rs. 1 lakh can be claimed in case of total and irrecoverable loss of sight of one eye or loss of use of one hand or foot.

The premium required in the scheme is Rs. 12 per annum per member. The premium is usually deducted from the account holder’s savings bank account through the ‘auto debit’ facility either in one instalment or before 1st June of each annual coverage period as per the scheme. However, in some cases, the auto-debit may occur post 1st June. In such a scenario, the cover shall commence from the first day of the month following the auto-debit. The premium is reviewed based on annual claims experience. However, in unforeseen adverse outcomes of unprecedented situations, efforts shall be undertaken to ensure that the premium is not going in the upward direction of revision, at least in the first three years. 

The Government of India can terminate the subscription of an individual associated with the Pradhan Mantri Suraksha Bima Yojana and cancel all the benefits in the occurrence of certain events like, if the individual attains 70 years of age, in case of closure of account with the Bank or insufficiency of balance to keep the insurance in force, in case the individual is covered through more than one account and premium is received by the insurance company accidentally, insurance cover will be restricted to one only. The premium shall be subject to forfeiture if the insurance cover is ceased due to any technical issue, for example, insufficient balance on the due date or due to any administrative issues; the same can be reinstated on receipt of the full annual premium, subject to conditions that may be laid down. During this period, the risk cover shall be suspended, and reinstatement of risk cover will depend on the discretion of the insurance company solely. Participating banks will deduct the premium amount in the same month when the auto-debit option is given, which is usually in May every year, and remit the amount due to the insurance company in that month itself.

The scheme is subject to the above details. It will be administered as per the standard procedure laid down by the insurance company. The data flow process and data proforma will be provided to the subscriber separately. The onus of the participating bank will be to recover the mentioned and updated annual premium from the account holders within the prescribed period through the ‘auto-debit’ process. 

The proposed date of the Pradhan Mantri Suraksha Bima Yojana commencement was on 1st June 2015. The next annual renewal date was decided to be each successive 1 st of June in subsequent years. The scheme is liable to be discontinued before a new future renewal date if circumstances requiring such change arise in the future.