Pradhan Mantri Suraksha Bima Yojana (PMSBY) is a government-backed accident insurance scheme in India. It was launched in 2015 by the Prime Minister of India, Narendra Modi, and was originally mentioned in the 2015 Budget speech by Finance Minister Late Arun Jaitley in February 2015). The scheme is available to people between 18 and 70 years of age with a bank account who give their consent to join and enable auto-debit). The annual premium for the scheme is ₹20 (25¢ US), and the amount is automatically debited from the account. The insurance scheme can have one year cover from 1 June to 31 May and is offered through banks. The scheme is administered through public sector general insurance companies.
The key features of the Pradhan Mantri Suraksha Bima Yojana are:
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Eligibility: The scheme is available to people between 18 and 70 years of age with a bank account who give their consent to join and enable auto-debit).
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Premium: The annual premium for the scheme is ₹20 (25¢ US), and the amount is automatically debited from the account.
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Coverage: The scheme provides accidental death and disability coverage. A death benefit of Rs 2 lakh is available to the beneficiary of the policy in case of accidental demise of the injured person. Moreover, coverage of Rs. 2 lakh is provided in case of total disability like irrecoverable or total loss of both the eyes, or loss of use of both the hands and feet, paralysis, etc. In case of partial disability, a life coverage of Rs 1 lakh is provided to the insured person.
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Renewal: The scheme is a one-year accidental death and disability cover which could be renewed annually.
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Administration: The scheme is administered through both public and private sector insurance companies in tie-up with scheduled commercial banks, regional rural banks, and cooperative banks.
The Pradhan Mantri Suraksha Bima Yojana is one of the social security schemes launched by the Government of India to provide insurance coverage to the masses.
