Pradhan Mantri Suraksha Bima Yojana Review

What is Pradhan Mantri Suraksha Bima Yojana?

The Pradhan Mantri Suraksha Bima Yojana (PMSBY) is a one year Personal Accident Insurance scheme. It offers protection against death or disability due to accident.

In this scheme, a person has to pay Rs 12 insurance premium. If he suffers serious injuries due to an accident, he can get upto Rs 2 lakhs. If he dies in the accident, his beneficiary will get upto Rs 2 lakhs insurance cover.

PMSBY is for one year. The person has to renew it every year.

What is Personal Accident Insurance and why is it needed?

Life is unpredictable.

An accident can happen at any time. We have to face it.

Accidents affect us both emotionally and financially. People get seriously injured or even die. But most of us are not prepared. A Personal Accident Insurance policy helps us in such a situation.

An accidental Insurance scheme (like Pradhan Mantri Suraksha Bima Yojana) provides compensation in such cases of accidental death or disablement.

What are the benefits of Pradhan Mantri Suraksha Bima Yojana?

Accidental Death  Rs. 2 Lakh
1. Loss of both eyes or
2. Loss of use of both hands or feet or
3. Loss of sight of one eye and loss of use of one hand or one foot
 Rs. 2 Lakh
1. Loss of sight of one eye or
2. Loss of use of one hand or one foot
 Rs. 1 Lakh

 Eligibility

  • Only Savings Bank account holders are eligible for PMSBY.
  • They have to be between 18 and 70 years

 Policy Period

The cover shall be for a period of 1 year starting from 1st June 2015 to 31st May 2016. After that it will be renewable on a yearly basis.

Premium

The premium for PMSBY is Rs 12 per year.

Payment Mode

Amount will be automatically debited (deducted) from the person’s Savings Bank Account

Terms & Conditions and Exclusions

  • A customer should not be insured in Pradhan Mantri Surakhsha Bima Yojana under any other Savings Bank Account.
  • The policy does not cover intentional self-injury or suicide or attempted suicide.

A Few Last Words

I hope you found this article useful. If you have any comments please feel free to contact me.

Before making any investment decision, please contact your financial adviser. I have provided this article for educational purpose only.

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Reference

  1. http://www.orientalinsurance.org.in/personal-accident-insurance.jsp
  2. http://www.tataaiginsurance.in/personal-insurance/
  3. http://www.kotak.com/personal-banking/investments-insurance/pradhan-mantri-bima-yojana/pradhan-mantri-suraksha-bima-yojana.html
  4. FAQ’s on Pradhan Mantri Suraksha Bima Yojana
  5. Final Rules of Pradhan Mantri Suraksha Bima Yojana

Subhodeep Mukhopadhyay

I am a Management Consultant in the Education Sector. In my previous corporate career, I have worked in Banking, Private Equity and Software industry. I am an MBA in Finance/ Computer Engineer and enjoy doing equity research and financial analysis in my free time.

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