Pradhan Mantri Suraksha Bima Yojana

Pradhan Mantri Suraksha Bima Yojana
CountryIndia
Prime Minister(s)Narendra Modi
MinistryFinance
Key peopleArun Jaitley
Launched9 May 2015; 9 years ago (2015-05-09)
StatusActive

Pradhan Mantri Suraksha Bima Yojana (PMSBY, translation: Prime Minister's Safety Insurance Scheme) is a government-backed accident insurance scheme in India. It was originally mentioned in the 2015 Budget speech by Finance Minister Late Arun Jaitley in February 2015.[1] It was formally launched by the Prime Minister Narendra Modi on 8 May in Kolkata.[2]

Provisions

Pradhan Mantri Suraksha Bima Yojana is available to people (Indian Resident or NRI) between 18 and 70 years of age with bank accounts. It has an annual premium of 20 (24¢ US). Goods and Services Tax (GST) is exempted on Pradhan Mantri Suraksha Bima Yojana. The amount is automatically debited from the account. This insurance scheme can have one year cover from 1 June to 31 May and is offered through banks. It is administered through public sector general insurance companies.[3]

Feature Description[4]
Scheme Name Pradhan Mantri Suraksha Bima Yojana
Announced on May 9, 2015
Country India
Initiated by Prime Minister Narendra Modi
Beneficiaries Poor and underprivileged individuals aged 18 to 70 years who have a savings bank account
Objective To provide accident insurance cover to the deprived population at an extremely affordable premium
Registration Process The account holder can enroll by visiting the bank branch, through BC (Banking Correspondent), or via BOB World Internet (Internet Banking)
Official Website National Insurance Company Limited National Insurance Company Limited: https://nationalinsurance.nic.co.in/en/about-us/pradhan-mantri-suraksha-bima-yojana
Contact 18003450330

In case of death or full disability, the payment to the nominee will be ₹2 Lakh and in case of partial permanent disability it would be ₹1 Lakh. Full disability has been defined as loss of use in both eyes, hands, or feet. Partial Permanent disability has been defined as loss of use in one eye, hand, or foot.[5][6] Further, death due to suicide, alcohol, drug abuse, etc., are not covered. A person joined under this scheme is eligible for a claim only after 45 days of joining the scheme.

This scheme is linked to the bank accounts opened under the Pradhan Mantri Jan Dhan Yojana scheme. Most of these accounts had zero balance initially. The government aims to reduce the number of such zero balance accounts by using this and related schemes.[7] Now, all bank account holders can avail this facility through their net-banking service facility at any time of the year.[8][9] The policy will be canceled if there is no balance in the account. The policy will lapse in case the bank account is closed. If you have multiple bank accounts, only one bank account can be linked to the scheme.[10]

Statistics[11][12]

Year policyholder

numbers (Cr)

Claims

Received (lak)

% claims disbursed
2015-16
2016-17 9.95 12.5 75.0%
2017-18 13.48 21.1 77.7%
2018-19 15.47 40.7 79%
2019-20 18.54 50.3 79.4%
2020-21 23.26 58.5 77.7%
2021-22 23.4 59.5 77.3%
16-11-2022 30.92
2023-24


Criticism

A rising loss ratio has forced general insurers to urge the government to hike the premium for the scheme.[13][7]

Results

As of 31 March 2019, 15.47 crore people have already enrolled for this scheme. 32,176 claims have been disbursed amounting to 643.52 crore (US$77 million).[14]

In April 2017, Haryana Government announced that all Haryana residents in the age group of 18–70 years will be covered by PMSBY; the state government would reimburse the premium to the beneficiary.[15]

See also

References

  1. ^ Reporter, B. S. (9 May 2015). "Jan Suraksha: Social security for masses, pricing woes for insurers". Business Standard India. Retrieved 31 January 2020.
  2. ^ Vishwanathan, Vivina (8 May 2015). "Banks advertise Pradhan Mantri Bima Yojana ahead of the roll out". Livemint. Retrieved 31 January 2020.
  3. ^ "Pradhan Mantri Suraksha Bima Yojana (PMSBY)-accidental insurance". revexpo.com. Retrieved 31 January 2020.
  4. ^ Anik, Kumar (4 April 2024). "Pradhan Mantri Suraksha Bima Yojana". Sabka yojana.
  5. ^ "Jan Suraksha: Social security for masses, pricing woes for insurers", Business Standard, 8 May 2015
  6. ^ "Banks advertise Pradhan Mantri Bima Yojana ahead of the roll out", Live Mint, 8 May 2015
  7. ^ a b "'Jan Suraksha schemes to help eliminate Jan Dhan's zero balance accounts'". Business Standard. 8 May 2015. Retrieved 9 May 2015.
  8. ^ "'Pradhan Mantri Suraksha Bima Yojana: Accidental death, disability cover@Rs 20 p.a". Retrieved 21 October 2022.
  9. ^ "Pradhan Mantri Suraksha Bima Yojana: Accidental death, disability cover @ Rs 12 p.a". Economic Times. 22 September 2016. Retrieved 22 September 2016.
  10. ^ "pradhan mantri suraksha bima yojana in 20 rupees premium". Prabhat Khabar. 28 July 2023. Retrieved 3 April 2024.
  11. ^ https://sbi.co.in/documents/13958/10990811/180821-Ecowrap_20210818.pdf/3fdd5e1a-0987-3890-2ba2-ec3e52038846?t=1629267503023 [bare URL]
  12. ^ "Government of India Hikes Premium Rates for Flagship Insurance Schemes PMJJBY & PMSBY for the First Time in 7 Years".
  13. ^ "State-run insurers seek to increase PMSBY premium". The Financial Express (India). 23 February 2017. Retrieved 22 April 2017.
  14. ^ "Telling Numbers: Enrolment and claims in flagship life, accident insurance schemes". Jan Suraksha. Retrieved 30 April 2017.
  15. ^ "Haryana extends accidental insurance cover to all residents". The Times of India. 19 April 2017. Retrieved 22 April 2017.