The Pradhan Mantri Suraksha Bima Yojana - All Your Questions Answered

In the previous article, we covered the basics of the Pradhan Mantri Suraksha Bima Yojana Scheme. As this scheme is quite new, you may have some unanswered questions about the same. The purpose of this article is to help clarify them. If you have any further queries about this scheme, feel free to sound off in the comments section and I will be more than happy to clarify them.

1.      What is the nature of the scheme?

The scheme will be a one year cover Personal Accident Insurance Scheme, renewable from year to year, offering protection against death or disability due to accident.

2.      What are the benefits under this scheme?

The following are the benefits of this scheme:

1.      Accidental Death – 2 Lakhs

2.      Total and Permanent loss of vision in both eyes or loss of use of both hands or feet or loss of one eye and one hand/feet – 2 lakhs

3.      Total and permanent loss of vision in one eye or loss of one hand or one feet – 1 Lakh

3.      Can I Pay the Premium as Cash every year?

No, you cannot. The premium can only be paid via Auto-Debit from your savings account that is linked to this scheme. No other mode of payment will be accepted.

4.      If I do not join this scheme now, can I join next year or a few years later?

Sure you can. The enrollment period is usually the May of each year and you can enroll any year in the future that you like. Note that the benefits of the scheme will only start after you signup for the same.

5.      I have a Personal Accident policy with another Insurance Company. Can I still avail this scheme?

Sure you can. There are no limitations on existing insurance policies that customers may have. This policy will be over and above the ones you already have.

6.      I accidentally signed up for this schemes in 2 of my banks. What happens now?

As per the Terms & Conditions of this scheme, an individual can sign up only once for this scheme. In your case, even if something happens to you, you cannot make 2 claims. You can only make One claim. The second premium you have paid will stand forfeited.

7.      What are the major exclusions on this policy?

This policy covers death or disability arising out of Accidents only. Death or disability arising out of Intentional Self Injury or Suicide or Attempted suicide is not covered. Any accidents that happened while the Insured was under the intoxication of any drugs or liquor is not covered. Similarly, any accidents that occurred because the policy holder was involved in an illegal activity, is not covered.

8.      Can I Nominate someone against my policy?

Sure you can. In fact, you cannot sign up for this Pradhan Mantri Suraksha Bima Yojana scheme if you do not have a Nominee assigned to your Savings Account. This person will be the default nominee for your policy. If you want to change the nominee, you can do that too.

9.      Does the Insurance Company have the option to cancel the policy?

Yes, they have the power to cancel the policy at any time if:

-        The policy holder is found to have enrolled with multiple banks for the same product

-        The policy holder is found to have provided incorrect information (Ex: Date of birth or any other personal information)

-        The premium was not received on time

10.   What are the roles of the Insurance Company and the Bank in administering this policy?

The Insurance Product is provided as a shared partnership between your bank and a partner insurance company. For ex: If you sign up with ICICI bank, the insurance is provided by ICICI Lombard Life Insurance. Similar to this, each bank has a tie-up with an Insurance provider who provides the policy.

The Banks takes up the responsibility of gathering information from account holders, their premium amounts (and any other info – as requested by the insurance company) and shares them with the Insurance company. The Insurance company in turn provides the bank with a Master Policy that covers all the individuals who have paid their premiums on time.

Similarly, when there is a claim, the bank will collect the claim form from the policy holder (or the nominee) and helps settle the claim in conjunction with the insurance provider.

Hope this article helps answer your queries on the Pradhan Mantri Suraksha Bima Yojana scheme. 

The Pradhan Mantri Suraksha Bima Yojana – Explained

The Pradhan Mantri Suraksha Bima Yojana is an accidental insurance product that is being made available for all Indian Citizens by the Hon’ble Prime Minister of India. This policy/product covers both death or disability arising out of an accident for the insured individual. The purpose of this article is to cover the key details about this scheme that you should know…

What is this Pradhan Mantri Suraksha Bima Yojana?

As mentioned above, the Pradhan Mantri Surakhsa Bima Yojana is an accidental insurance policy that covers both accidental death or disability. The scheme would be offered through Public Sector General Insurance Companies (PSGIC’s) and other General Insurance Companies willing to offer the product on similar terms and with necessary approvals. The scheme is available for purchase through all banks across India.

Who can enroll in this Pradhan Mantri Suraksha Bima Yojana?

Any Indian citizen with a Savings Account aged between 18 and 70 years can enrol in this scheme. In case an individual has multiple savings accounts with different banks, he/she is eligible to enrol through only one bank account.

What is the Enrollment Period?

The scheme is a year on year insurance product where the individual is expected to make yearly premium payments in order to keep the policy active. As of now the scheme is available for enrolment until August 2015 and the insurance coverage will start from the 1^st of the following month of enrolment for a period of One Year.

As a policy holder, you can choose to exit the scheme any time you want and sign-up again any time in the future.

What are the Benefits of this Pradhan Mantri Suraksha Bima Yojana Scheme?

The following are the benefits of this scheme:

1.      Accidental Death – 2 Lakhs

2.      Total and Permanent loss of vision in both eyes or loss of use of both hands or feet or loss of one eye and one hand/feet – 2 lakhs

3.      Total and permanent loss of vision in one eye or loss of one hand or one feet – 1 Lakh

What is the Yearly Premium for this scheme?

The premium to be paid by individuals will be Rs. 12 per year and the same will be reviewed by the insurance companies based on the claims experience in the coming future. However, the government has instructed the insurance companies to do all they can to ensure that the premiums don't go up drastically.

The premium can only be paid via Auto-Debit from your Savings Account. No other modes of payment will be accepted.

Things You Should Know About the Pradhan Mantri Jeevan Bima Yojana:

The following are some key points you should know about this scheme..

·        The Insurance Coverage will cease at the point where you reach 70 years of age

·        The Insurance Coverage will cease at the point where you close your Bank Account or if your account does not have sufficient funds to pay the premium for this scheme

·        In case any individual is found to have enrolled in this scheme through multiple banks, only one claim will be entertained. Any premiums paid via other banks shall be forfeited.

·        Premiums will be deducted during the month of May every year and the bank will remit the premium on your behalf to the insurance company

·        The bank through which you signed up will be the Master Policy Holder and all members who have signed up by paying the yearly premium will be subscribers to the same.

Hope this article helped you get an understanding of the Pradhan Mantri Suraksha Bima Yojana. You may still have some unanswered questions about this scheme. The next article will help you get those answered…