PMSBY – Pradhan Mantri Suraksha Bima Yojana

Pradhan Mantri Suraksha Bima Yojana (PMSBY) is an accident insurance scheme launched by the Government of India which came into existence in May 2015. It is a social security scheme  which offers a one-year accidental death and disability insurance coverage for a period of one year, starting June 1 to May 31 of the subsequent year & can be renewed annually.

FEATURES OF PMSBY

The key features of this scheme are as below –

  • This is a low-priced policy especially for weaker sections of the society and can be purchased for Rs. 12.
  • The beneficiaries of the policy will receive the death benefit in case the policyholder dies in an accident
  • The coverage of Rs 2,00,000 will be provided in case of full disability or accidental death and Rs 1,00,000 in case of partial disability.
  • It can also help in saving tax.
  • The exit and re-entry measures are simple to understand

ELIGIBILITY OF THIS SCHEME :

  • People under the age group of 18 – 70 years are eligible to apply.
  • The bank account must be linked with the Aadhaar card.
  • If the bank account is not linked with the Aadhaar card, then the Aadhaar card copy must be attached with the application form.
  • If the individual has more than one savings account, he or she is only eligible to join the scheme through a single bank account.

HOW TO APPLY FOR PMSBY ?

One can enroll for this scheme by contacting an affiliated bank or an insurance company. The Pradhan Mantri Suraksha Bima Yojana form can also be downloaded from the government’s Jan Suraksha website where it is available in multiple languages.

The registration process can be initiated either through the respective bank’s internet banking facility or simply by sending an SMS on the organization’s toll-free number.

The following details are required to be filled duly to enroll for this scheme-

  • Name
  • Aadhaar number
  • Contact information
  • Nominee details

The only document that has to be submitted along with the application form is the Aadhaar Card copy if the Aadhaar is not linked to the savings bank account. 

BENEFITS OF PMSBY –

  1. It provides an accident insurance cover without spending a lot as compared to other policies.
  2. The claim amount can be availed by the nominee hence it ensures the welfare of the family in case of death.
  3. Deduction as per Section 80C and Sum Insured of Rs. 1 lakh is non-taxable as per Section 10(10D) of the Income Tax Act.

 

Thus, the Pradhan Mantri Suraksha Bima Yojana (PMSBY) is an accident insurance scheme directed towards people belonging to the lower-income category to insure them against unfortunate events that can lead to death or disability.

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