#PolicyExplainer: Everything you should know about government's Suraksha Bima Yojana
Having a personal accident and disability insurance cover has become a necessity for financial security in case of disability or death in road accidents. However, many people don't have accidental death and disability insurance as these policies aren't affordable for everyone. To provide an affordable option, the Modi government launched Pradhan Mantri Suraksha Bima Yojana (PMSBY) in 2015. Here's all you want to know.
Suraksha Bima Yojana was launched in 2015. The accident and disability cover offered is valid for one year, from 1 June of the current year to 31 May of the next year. At just Rs. 12 per annum, it provides risk coverage of Rs. 2 lakh in case of policyholder's accidental death or permanent total disability, and Rs. 1 lakh for permanent partial disability.
Under Suraksha Bima Yojana, anyone having a bank account and aged between 18-70 years is eligible to subscribe to the policy; their bank account must be linked to Aadhaar. The accidental death and disability cover offered under the scheme can be renewed automatically every year. The Rs. 12 premium amount is auto-debited from the policyholder's bank account on or before 1 June every year.
Those interested in joining the PMSBY scheme can approach their home bank branch (participating banks) where they hold a savings bank account or a participating insurance company, and submit their application. Some banks also have an option to subscribe to the scheme online through net banking. Alternatively, customers can also avail the SMS facility of the bank to register themselves for the scheme.
In case of accidental death of a subscriber, the concerned bank should be informed. The nominee/appointee/legal heir should submit the claim form along with FIR, postmortem report, and death certificate within 30 days of the incident. For disability claims, the policyholder's bank must be informed and a claim form along with disability certificate issued by civil surgeons and discharge certificate should be submitted.
The accident cover of a policyholder terminates once the subscriber attains 70 years of age. The policy will also terminate if the subscriber's bank account does not have funds to pay the premium, or if a person has more than one policy under PMSBY.