Pradhan Mantri Suraksha Bima Yojana is a Government scheme launched by Prime Minister Narendra Modi for India. It is a scheme introduced for accidental death proposed by finance minister Arun Jaitley during his budget speech in February 2015. It was launched on 9th May 2015 in Kolkata.

Objectives And Benefits Of Pradhan Mantri Suraksha Bima Yojana

• Pradhan Mantri Suraksha bima yojana (PMSBY) gives an insurance policy and financial aid to the people belonging to the lower section of the society in case of any mishap or accident. All the Insurance companies from both the Private and Public sectors control this scheme.
• This scheme of Pradhan Mantri Suraksha Bima Yojana provides a life cover of Rs.2 lakhs for one year to all the scheme account holders. This life cover is provided only in the case of accidental death or permanent disability.
• A life cover for Rs.1 lakh is provided to the beneficiary in the case of partial disability.
• This scheme is available only to the individual aged between 18 years to 70 years.
• In the case of an account holder’s death, their nominee can benefit from the scheme.
• This scheme gives an annual premium of Rs.12 per annum per member. This premium is auto-debited in one installment every year.

Eligibility For Pradhan Mantri Suraksha Bima Yojana

• Any individual between the age of 18 years to 70 years is eligible to apply for the scheme.
• He/she must hold a bank account and along with their phone number linked to their account.
• The individual should submit his/her Aadhaar details while applying for the scheme. These Aadhaar details shall be linked to their bank account.
• If any individual has multiple bank accounts, then he/she will be eligible to join the scheme through one bank account only.
• In an NRI case, the claim benefits will only be provided to the nominee in Indian currency.

Availing The PMSBY Scheme

This scheme is offered through Public Sector General Insurance Companies (PSGICs) and other general insurance companies, jointly with banks. These banks are free to engage any General Insurance company to implement the scheme for their customers.

Enrolment Period

This cover is for a particular period, starting from June 1 to May 31 of the subsequent year. The option to join/pay by auto-debit has to be given by May 31 of every year. Beneficiaries who wish to continue beyond the first year have to give their consent for auto-debit before May 31 every successive year.

Inclusion and Exclusion

Some inclusivity and exclusivity factors are important to remember.

• Accidents, deaths, or disabilities resulting from natural calamities are covered under PMSBY.
• Suicide is not covered. Also, the family gets no insurance benefit if the beneficiary commits suicide.
• Murder is covered.
• Partial disability without irrecoverable loss is not covered.

How To Pay The Premium?

The premium payable is Rs.12 per annum per member, and the amount is deducted from the bank account through auto-debit in one installment. However, in such cases where auto debit takes place after June 1, the cover shall start from the date of auto-debit of premium by the bank.

The annual renewal dates shall be June 1 in subsequent years. Even if one gets enrolled with more than one bank, the premium has to be paid by only one bank, and the other compensation may get canceled. The premium will be based on annual claims. However, barring unforeseen outcomes, efforts will be made to ensure no revision of the premium in the first three years. Also, there will not be any policy certificate issued to the individual beneficiaries as the participating banks will be the head of the scheme holders.

Termination Of The Scheme

The accident cover of the member will get terminated in any of the following stages

• On attaining the age of 70
• On closing of the bank account or insufficient balance to keep the insurance in movement
• In case any member is covered through more than one account, and the premium is received by the insurance company accidentally, the insurance cover will be restricted to one account, and the premium will be forfeited.

Things Covered Under The Scheme

Under the PMSBY scheme, the risk coverage is Rs.2 lakh for accidental death and permanent disability and Rs.1 lakh for partial disability. Permanent disability is defined as irrecoverable loss of both eyes or loss of use of both hands and loss of hand or foot use. Permanent partial disability is defined as total and irrecoverable loss of eyesight or loss of hand or foot use. This scheme is not a Medical claim. Therefore there is no provision for repayment of hospitalization.

FAQs

MCQs

1. Which of the following is the primary objective of the Pradhan Mantri Suraksha Bima Yojana?

A. To provide accidental death and disability coverage
B. To offer pension benefits
C. To provide health insurance
D. To support child welfare schemes

2. What is the premium for the Pradhan Mantri Suraksha Bima Yojana?

A. Rs. 50
B. Rs. 100
C. Rs. 12
D. Rs. 200

3. Who is eligible for the Pradhan Mantri Suraksha Bima Yojana?

A. Citizens between the ages of 25-55
B. Citizens between the ages of 18-70 with a bank account
C. Only government employees
D. Children below the age of 18

4. What is the accidental death benefit under PMSBY?

A. Rs. 1 lakh
B. Rs. 2 lakh
C. Rs. 3 lakh
D. Rs. 5 lakh

5. What feature of PMSBY makes it an accessible scheme for low-income individuals?

A. High premiums
B. Easy access through online registration
C. Auto-debit premium collection
D. Complex eligibility criteria

GS Mains Questions and Model Answers

1. Discuss the role of the Pradhan Mantri Suraksha Bima Yojana in promoting financial inclusion in India.

Answer: The Pradhan Mantri Suraksha Bima Yojana is a significant step towards financial inclusion in India. By providing affordable insurance coverage for accidental death and disability, it ensures that even economically weaker sections of society have access to basic insurance protection. The scheme's low premium rate and automatic bank account deductions make it accessible to rural and underserved populations who otherwise might not have the means or knowledge to avail of such services. In this way, PMSBY helps integrate individuals into the formal financial system, promoting greater economic security and resilience against unforeseen events.

2. Evaluate the potential benefits and challenges of the Pradhan Mantri Suraksha Bima Yojana in rural India.

Answer: The potential benefits of the Pradhan Mantri Suraksha Bima Yojana in rural India are substantial. It provides affordable insurance coverage for accidental death and disability, ensuring that rural populations, who are often vulnerable and without financial safety nets, receive basic financial protection. The scheme also promotes the habit of saving and insuring among low-income families. However, challenges such as limited awareness, financial literacy, and internet access may hinder the full benefits of the scheme in rural areas. To overcome these challenges, more intensive awareness campaigns and local banking access can improve the scheme’s reach and effectiveness.

3. Analyze how the Pradhan Mantri Suraksha Bima Yojana addresses the needs of low-income groups in India.

Answer: The Pradhan Mantri Suraksha Bima Yojana (PMSBY) directly addresses the needs of low-income groups in India by offering a very low premium rate of Rs. 12 per annum for accidental insurance coverage. Low-income families, especially in rural and informal sectors, are highly vulnerable to financial distress due to accidents. PMSBY provides them with a safety net, ensuring that in the event of an accident, they or their families receive financial support. Additionally, the scheme's accessibility through bank accounts and automatic premium deductions reduces the burden on individuals and ensures that even the most marginalized groups can participate in the insurance system.

Previous Year Questions on Government Schemes

UPSC CSE Prelims 2018

Question: Which of the following schemes provides insurance coverage against accidental death and disability?
A. Atal Pension Yojana
B. Pradhan Mantri Suraksha Bima Yojana
C. Pradhan Mantri Fasal Bima Yojana
D. Jan Dhan Yojana

Answer: B

Explanation: The Pradhan Mantri Suraksha Bima Yojana provides insurance coverage for accidental death and disability, offering financial protection in the event of an accident.