What you should know about the government’s accident and disability scheme

Pradhan Mantri Suraksha Bima Yojana (PMSBY) is a part of the three social security schemes announced by the central government as part of the 2015 budget. This is an accident insurance scheme that provides an accident and disability cover for a period of one year and this can be renewed annually.

Enrolment for the program

This cover is for a period of one year between June 1 and May 31 of the subsequent year. The subscriber must give the option of joining the scheme by opting for auto renewal by May 31 of every year. Those who wish to keep the policy alive for more years must give their assent for auto debit before May 31 for the further years.

Coverage offered by Pradhan Mantri Suraksha Bima Yojana (PMSBY)

The PMSBY provides a risk cover of Rs 2 lakh in case of accidental death or permanent total disability. Rs one lakh is provided towards permanent partial disability. Permanent partial disability can be understood as the permanent loss of two eyes or both hands or feet or loss of an eyesight or the ability to use a hand or foot. The cover provided under PMSBY can be used in addition to any other insurance plan the subscriber has got. This is not a mediclaim kind of policy as it does not cover hospitalization expenses after suffering an accident which can result in a disability or injury.

What it includes and excluded

The PMSBY scheme covers accidents, death and disability due to natural calamities and other reasons. Death due to suicide is not covered by this scheme. Death due to murder is however covered. Partial disability without a permanent disability or loss of one hand or foot is not covered.

Eligibility criteria

All those persons who have a single or joint bank account and belonging to the age group of 18 and 70 years can join PMSBY life insurance scheme. If the individual has multiple bank accounts with different banks, they can join the scheme through a single account only. A joint account entails all the account holders to join the scheme. Even NRIs can join the scheme. In the event of a claim by such persons, the benefit will only be settled in Indian currency.

Premium amount payable

The premium amount for this policy is only Rs 12 per person per year. This will be deducted from the individual’s bank account through auto-debit facility in a single installment on or before June 1 in a year. If the auto debit happens on any other date after June 1, the cover will start from the date of auto debit of the premium. If an individual has joined the scheme through multiple accounts, the benefit will only be disbursed through a single account with the other premiums being forfeited.

Validity of the cover

The accidental cover will automatically terminate in the following cases.

The subject attaining the age of 70.

Insufficient funds to keep the policy alive or closure of the bank account.