Pradhan Mantri Suraksha Bima Yojana
With the dawn of the Modi government, the ordinary people have been gifted with many schemes. These programs are aimed at bringing about parity between the economic standards of individuals from all section of the society.Road accidents are a common phenomenon in every country. Each year more than 1, 37, 000 people are killed in various road accidents. It amounts to a whopping 5% of all deaths occurring in the nation.
To change the situation and provide security to the people, belonging to the lower economic starts, the government has initiated the Pradhan Mantri Suraksha Bima Yojana scheme. The government aims at providing security to the poor people, in case they get involved in a road accident.
Overview of the insurance scheme
Earlier the poor people were not able to take advantage of the insurance policies. It was because of the high rate of the premiums. The Modi government is trying to eliminate the problem by initiating a scheme that will prove to be beneficial for all.
Among the many reformative plans of the Union Government, the Pradhan Mantri Suraksha Bima Yojana has been attracting the attention of the common people, falling under the poverty level. The announcement of this particular scheme was made during the budget session of 2015. The main purpose of the plan is to give the poor people some kind of insurance against any kind of road accident.
The program tries to bring people working in the sectors, which have been recognized as “high risk” zones – like mechanics, truck drivers, and labors. These professions are associated with traveling. The insurance scheme is pocket-friendly and will ensure for total or partial disability.
Important points of the scheme
The Modi government has initiated the Pradhan Mantri Suraksha Bima Yojana for all people who fall in the age bracket of 18 to 70 years. The candidate must also have access to a functional bank account. The premium of the scheme starts at only Rs. 12, without service tax. The amount of Rs. 12 will be debited from the savings account of the candidate. During an accident and demise of the insurance holder, the government will pay one timely sum of Rs. 2 lakhs to the person appointed as the nominee. If the candidate becomes partially or fully disabled, they will receive an amount of Rs. 1 Lakh from the government.
Key features of the Pradhan Mantri Suraksha Bima Yojana
Before taking a leap, a thorough understanding of the program is necessary. It will assist the candidate in eliminating any doubts, which might be shrouding the mind. With better understanding of the scheme and its key features, you will be able to analyze why the pragma is so popular. The following are some of the important features of the scheme:
- The Pradhan Mantri Suraksha Bima Yojana can be renewed on a yearly basis. It means that there is no need to wait for a certain time for claiming the insurance cover amount. It will prove to be beneficial for the low-income families as they often depend on a single earning member.
- A service charge, at 14% must be paid in addition to the premium amount that the candidate is paying towards this insurance scheme. This sum needs to be paid once every year. So, the candidate will be saved from worrying about making the monthly payments.
- The cover will ensure an amount of Rs. 2 Lakh to the nominee of the candidate. It will be paid immediately after the death of the insurance holder. In case the person gets disabled, the government will pay an amount of Rs 1 to 2 Lakhs, depending on the severity of the disability.
- The insurance account will be directly linked to the other account of the policy holder. Thus, they will not have to make the deposits manually. The amount will be automatically transferred to the insurance account on the due date.
- Renewal of the policy will depend on the wish of the policyholders. They can either opt for the long tenure option or can take the benefit of renewing the policy at the end of each year.
- If the candidate decides to discontinue the scheme, then they can do so by signing an application at any moment. Once they opt out of the scheme, they can be a part of it by signing the necessary documents. There is no bar to it.
- The scheme will provide accidental insurance to the people who are appearing in the age brackets of a minimum of 18 years to the maximum of 70 years. Anyone below or above the mentioned ages will not be permitted to register in the plan.
- Though the candidate will be able to make the payment by cash, the government has made the mode of payment easy by linking the insurance account to the savings bank account of the person. Thus, the specified amount will be deducted at the right time.
- Each month, a specified amount of only Rs. 12 will be deducted from the savings account of the policy holder and it will be added to the insurance account. It will ensure safety to the poor people.
Benefits of the Pradhan Mantri Suraksha Bima Yojana
Elaborately speaking, there are three major advantages of the Pradhan Mantri Suraksha Bima Yojana. As it has already been mentioned, this program has been initiated to bring the poor people of the country under the umbrella of accidental insurance covers. There are no extra points for guessing it is the cheapest cover plan till date. The benefits of the cover have also been planned in such a way that the people dependent on the policyholder do not face hardships after the demise of the policy holder.
The following chart will give you a clear idea about the advantages of the insurance scheme:
|1. If the candidate dies in the road accident then,||A onetime sum of 2 lakhs will be given to the nominee of the policy holder|
|2. If the candidate is rendered fully disabled in the event of the accident, for instance loss of both limbs(hands and/or feet), loss of eye sight then,||A one tine sum of 2 lakhs will be given to the policy holder|
|3. If the candidate is rendered partially disabled, for instance losing sight in one of the two eyes, losing the ability to use one foot or hand, then,||The policy holder will be given a sum of 1 lakh to combat the situation for the time being and save the family from hardships.|
Tax benefits of the policy
Apart from the monetary benefits, which have been outlined in the above table, the scheme will also give the candidates some tax benefits. The policyholder will be entitled to some deductions on the premium that they are paying. It will fall under Section 80C. Under the economic law of Section 10(10D), the policy amount of 1 lakh will not be subjected to any taxation.
Eligibility criteria for the scheme
If the benefits mentioned above have interested, you then you must proceed to know about the various eligibility aspects of the insurance scheme. It has been made in such a manner that it will be able to meet the requirement of all. The following are some of the eligibility criteria that you need to meet to be a part of the program:
1. Age limit of the candidates
The age of the person, wanting to be a part of the program, must fell within the bracket of 18 to 70 years. This is a strategic step taken by the government to provide security to the youth of the nation from accidents.
2. Presence of the savings account is a must
- Another criterion for being a part of the scheme is that the person should have a functional savings bank account. The account can be opened in any branch of any government or private bank, operating in the country.
- In case the candidate, registering under the accidental insurance scheme is holding numerous savings accounts, in one or more financial institutes, then the insurance account will have to be linked to any one of the accounts. This has been done to eradicate any confusion both for the government and the candidate.
- The person interested in taking part in the insurance scheme must have sufficient balance in the savings account so that the transfer can be made without failure on the due date. The premium amount is only Rs. 12 on a yearly basis.
3. Importance of the Aadhar card
The details of the savings account must be appropriately linked to the person’s Aadhar card. It will assist the government in transferring the money directly to the insurance account without manual intervention.
- In case the person’s account details and the Aadhar card codes are not linked to each other, the applicant will have to produce the photocopy of all the documents with the application form.
Submission of the KYC application form
For taking care of the opening of the insurance account, the person will have to fill the basic KYC form and will have to produce the Aadhar card in support of the residential and identification claims thus made.
Importance of the Aadhra Card in the Yojana
To be a part of the Pradhan Mantri Suraksha Bima Yojana, the person will have to meet each of the eligibility criteria stated above. If you want to be a part of this program, then you will have to be a residing citizen of the country. For this, the government has made the production of the Aadhar card mandatory while opening the account for the scheme. Along with this, you will also have to submit the documents approving your name, residential address, associated Aadhaar details; current contain numbers and the details of the nominee. The form has been made available in many regional languages. This will help the people in filling the form with ease, without the assistance of another person. Some of the regional languages are Hindi, Bengali, Telegu, Marathi, Tamil, Oria and of course English.
How should one enroll for the scheme?
Enrolling for the program is easy. Most of the banks, operating in the country will provide the customer with the form for applying for the insurance. The process can be tackled manually or via internet portals.
- If you want to opt for the manual process, then the interested person can visit the branch of the particular bank or the regional office of the insurance company. If you want to opt for the online process, then you need to log into the official web page of the bank and make use of internet banking options.
- You can also be a part of the scheme by sending a query via SMS to the registered number of the policy department. The contact number of the banks or the policy offices, falling under the Pradhan Mantri Suraksha Bima Yojana will differ from one place to another.
- By calling the insurance department of the respective area, the willing candidates will be able to gather all necessary information. Then by filling the respective forms, collected from the bank or the insurance office, they can get their names registered under the insurance scheme.
What to do for termination of the scheme?
As it has already been mentioned, the policyholder can choose to leave the scheme at the end of the completion of the first tenure of one year. The accidental insurance will be finished, and the policyholder will not be entitled to receive any benefits:
- The insurance scheme will not be held valid once the policyholder reaches the age of 70 years. The payment of the premium will be valid till the person is of the age mentioned in the guidelines.
- In case the person’s savings account has been closed by the bank due to any legality, lack of maintenance or the absence of the least money amount, then the validity of the insurance policy will be terminated before time.
- In case the policyholder is insured via more than a single account, the assurance cover will get controlled to any one account. The excess premium that has been transferred will automatically be lost.
- In case the insurance is stopped due to practical reasons, or because of the absence of sufficient amount in the account, it can be restored only after the complete outstanding amount of the premium has been transferred to the insurance account. The policyholder will not be entitled to getting the amount that was assured under the insurance cover.
- It is the responsibility of the respective banks for deducting the premium amount from the savings account of the policy holder. The amount must be transferred to the respective account of the person, to the respective insurance company, before the month ends.
Claiming the amount under PMSBY
Once you have enrolled your name under the scheme, you must gather necessary knowledge about making the claims. The following are some of the steps that must be followed for making a claim in the proper manner and getting the insurance amount:
- When the accident has taken place, the policyholder or the registered nominee (in case the policy holder has passed away) will have to bring it to the notice of the bank manager, so that the process can be forwarded.
- The candidate or the nominee needs to download the claim form from the web page from the registered portals. If going online is not your forte then the application form for making the claims can be obtained from the branch of the respective branch. The form is also available from the office of the insurance company.
- The properly filled form of claiming the amount needs to be surrender to the bank manager. This process must be completed within a time span of 30 days. This time will be counted from the day the mishap has happened.
- The application of claim will have to be accompanied by the copy of the FIR report, the death record, and the post-mortem analysis reports. If the candidate has been rendered disable, then the claim form must be accompanied by a proper disability certificate. It must be generated by a government registered doctor. If the person has been given the certificate of discharge, then that must be attached to the form as well.
- When all these documents have been submitted by the candidate or the nominee of the deceased policy holder, it is the responsibility of the bank to conduct all necessary verification of the documents and forward it for the consideration of the insurance institute. It must be completed within a time of 30 working days.
- The next set of verifications will be done by the company, providing the insurance. When they become sanguine about the registration of the person, they will do the needful for preceding the case accordingly. The entire process must be completed within a specified time span of 30 days after the bank has surrendered the forms.
- Once everything has been settled, the insurance amount will be transferred to the account of the policyholder or the registered nominee. If the policy form does not have any details about the nominee, the money will be allotted to the blood heir of the policyholder.
- The blood heir of the policyholder must produce the proof of his succession. Once the money has been transferred to the account, the nominee or the successor can draw the amount via check. All these must be completed within a span of 30 days.
What information must be furnished for claiming?
As it is with the claiming process of any other insurance, the policyholder or the nominee will have to furnish some personal and official details, associated with the insurance claim. Keeping the list handy will assist you in making the claiming procedure smooth:
- Keeping the personal data handy will assist the claimant for starting the claiming procedure. The candidate needs to produce all the documents, which are related to the official name and residential address of the policyholder.
- The name of the bank, the branch name and the official address of the branch must also be provided while making a claim. With these, the candidate needs to provide the savings account details.
- The mobile phone number, the email ID and the Aadhar pass numbers of both the policyholder and the nominee must be provided. It will assist the bank and the government in settling the claims.
- All information, related to the mishap, for instance, the date and the time, the place, the type of mishap, the reason for the demise or any serious injury must be produced. The candidate will have to produce the address and the name of the medical center where the policyholder is being treated. The details of the doctor in charge must also be provided.
- Apart from this, the nominee will also have to submit the date and time when the medical in charge of the policy company will be paying a visit. Along with these, all necessary documents, involving the policy and the claim must be submitted.
Last but not the least, the person claiming the insurance money must sign the statement papers. In this paper, the Aadhar card code, the policy, and the claim codes must be provided. It will make the process smooth and will leave no place for error.
Drawbacks of the scheme
If you think that the latest insurance policy is all rosy, then you are mistaking. Experts have pointed out that not all aspects of the insurance cover plan are watertight. The following are some of the points, which will help you in assessing the real benefits of the plan:
- As the coverage sum is only 2 lakhs for death or total disability while it is just 1 lakh in case of partial incapacity, the plan does not appeal to most people falling in the middle class. It is seen as an insurance scheme for the poor classes only. The sum of money is not very high to attract the middle classes.
- There are thousands of urban and rural areas live below the line of poverty. Thus, they lack the adequate education to understand all aspects of the insurance plan. So, without proper assistance, they will not be able to figure out whether the PMSBY is beneficial for them. Thus, the government needs to spread awareness about the scheme.
- Due to the high percentage of people living under the poverty line and lack of adequate amenities forces the poor people to concentrate on earning a livelihood rather than gathering information about the welfare programs. When a high percentage of people remain unaware of the scheme, the scope of its implementation and success will remain in murky waters.
Though there are many obstacles in the way of the implementation of the scheme, with proper strategies, the government will be able to provide the minimum insurance for the ordinary people of the nation. This is just a step towards attaining the aim of Narendra Modi’s “acche din” for one and all.