In the Budget Speech of 2015-16, Our Hon’able Finance Minister Shri Arun Jaitley announced few schemes which would address the social security and welfare issues. The most notable being Pradhan Mantri Jeevan Jyoti Bima Yojana (Term Insurance), Pradhan Mantri Suraksha Bima Yojana (Accident Insurance) and Atal Pension Yojana (APY). It is a big step towards getting the majority of Individuals insured so that they can enjoy some kind of financial security in the future.
In this post I will discuss about the Pradhan Mantri Suraksha Bima Yojana (Accident Insurance) for Individuals at a very affordable rate and should be availed by all and especially the ones who don’t have any accident insurance cover as yet. The terms of the policy is also very simple and does not require any lengthy formalities. As the term suggest this policy will provide monetary compensation in an unfortunate event of the subscriber/insured person suffering a fatal accident. The insured will be paid the full sum assured in case of death due to an accident or 50% of the sum insured in an event of incumbent suffering a severe injury.
Pradhan Mantri Suraksha Bima Yojana (PMSBY) is an Accident Insurance Cover for Individuals who have a Savings Bank a/c in their name. The Scheme will be renewable on annual basis and the premium will be automatically debited from the Savings a/c linked with the scheme. The scheme is offered by the Government of India and would be administered by the Public and Private General Group Insurance Companies adhering to the terms of the policy. These Insurance companies will tie up with the respective banks in order to offer insurance policies to the subscribers.
Let’s look at the Salient features of this Policy:-
All savings bank account holders between the age group of 18- 70 years will be eligible to join the scheme. In case of individuals having multiple bank accounts in the same bank or different banks, can apply for the scheme only through one savings account.
In case of multiple applications, the additional applications will be rejected and the premium paid for the same shall be liable to be forfeited.
ENROLLMENT PROCESS AND PERIOD
Individuals can apply for the Scheme by filling up the form available at all the branches of participating bank where they have their Savings Account. One can also apply online through the window opened up by the banks for the same.
The process is simple and does not require any lengthy formalities.
The cover period will be of one year starting from 1st June,2015- 31stMay,2016. Subscribers can even enroll after 1st June for same but till 31st, August 2015, which may be extended by the Government of India by another 3 months.
Those who join subsequently (after the aforesaid period) will be able to do so on payment of the full annual premium and conditions laid out (if at all) to subscribe to the scheme.
The policy cover will be available for one year. Upon completion of the term the policy will be automatically renew and the premium for the policy will be deducted from the savings account of the individual through “auto debit” process.
Individuals will be covered under the scheme on renewal of the same till the age of 70 years, after which the policy cover will cease for the individual.
Policy will also terminate on closure of the Savings Account linked with the scheme, or in case of failure to maintain the minimum balance for the payment of the premium.
Individuals also have the option to exit the scheme and rejoin later on satisfying the terms and conditions of the policy.
PREMIUM AND PAYMENT PROCEDURE
Individuals have to pay an annual premium of just Rs 12/- for the cover. The premium will be automatically debited from the Savings account registered under the scheme.
Policy will pay Rs 2,00,000/- to the nominee in case of death of the policy holder.
Full Sum Assured (Rs 2,00,000/-) will also be paid in case of an Individual suffering from permanent loss of vision on both the eyes or losing both hands or feet or combination of eye and limbs (hand & feet).
50% (Rs 1,00,000/-) of the Sum Assured will be paid as compensation in case the Subscriber loses sight in one eye or one arm or foot.
NO SURRENDER/MATURITY VALUE
No surrender or maturity value is payable against the insurance premium paid. It is a simple Accident Insurance Cover.
Tax Deductions will be available U/S 80C on the premium paid. But on a lighter note when you are paying a premium of Rs 12/- then it won’t help You much in that regard.
CLAIM SETTLEMENT PROCEDURE
Participating Banks will be the Master Policy Holders and they in consultation with the respective Life Insurance companies will formulate a simple claim settlement process which would reduce the hassles for the subscribers.