Rules for Pradhan Mantri Suraksha Bima Yojana (with effect from 16.10.2021)
About PMSBY
PMSBY is an accident insurance scheme that gives cover for death or disability caused by an accident. It is a one-year cover, renewable from year to year. The scheme is offered and administered through Public Sector General Insurance Companies and other general insurance companies willing to offer the product on similar terms, with the necessary approvals and tie-ups with banks. Participating banks are free to engage any such insurance company for their subscribers.
Scope of coverage
All individual bank account holders in the age group of 18 to 70 years in participating banks may join. A person who holds several bank accounts in one or more banks may join the scheme through one account only. Aadhaar is the primary KYC document for the bank account.
How and when to enrol
The cover is for one year, from 1 June to 31 May. The option to join and pay by auto-debit from the designated bank account must be given on the prescribed form by 31 May every year. Joining later is possible on payment of the full annual premium. Applicants may also give a longer or open-ended option for enrolment and auto-debit, subject to the scheme continuing with terms that may be revised on the basis of past experience. A person who leaves the scheme may join again in a later year in the same way. People who newly become eligible, or eligible people who did not join earlier, may join in later years while the scheme continues.
Benefits
| S. No. | Benefit | Sum insured |
|---|---|---|
| 1 | Death | ₹2 lakh |
| 2 | 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 a hand or foot | ₹2 lakh |
| 3 | Total and irrecoverable loss of sight of one eye, or loss of use of one hand or foot | ₹1 lakh |
Premium
₹12 per year per member. The premium is deducted from the account holder's bank account by auto-debit in one instalment on or before 1 June of each annual coverage period. Where the auto-debit takes place after 1 June, the cover starts from the date on which the bank debits the premium.
The premium is reviewed on the basis of annual claims experience. Barring unforeseen adverse outcomes of an extreme nature, efforts are made to ensure that the premium is not increased in the first three years.
Eligibility conditions
Individual bank account holders of participating banks aged between 18 years (completed) and 70 years (age nearer birthday), who give their consent to join and enable auto-debit as described above, are enrolled in the scheme.
Master policy holder
The participating bank is the master policy holder on behalf of the participating subscribers. A simple and subscriber-friendly process for administration and claim settlement is finalised by the general insurance company in consultation with the participating bank.
Termination of cover
The accident cover for the member ends on any of the following events, and no benefit is payable after that:
- On reaching the age of 70 years (age nearer birthday).
- On closure of the account with the bank, or when the balance is not enough to keep the insurance in force.
- If a member is covered through more than one account and the insurance company receives the premium by mistake, the cover is limited to one bank account only, and the premium paid for the duplicate insurance may be forfeited.
- If the cover stops for a technical reason such as insufficient balance on the due date, or for an administrative reason, it can be restored on receipt of the full annual premium, subject to the conditions laid down. During this period the risk cover is suspended, and restoring it is at the sole discretion of the insurance company.
- Participating banks deduct the premium in the same month in which the auto-debit option is given, preferably in May every year, and send the amount due to the insurance company in that month itself.