What are the features of PMSBY?

The Narendra Modi Government introduced many schemes in 2015, specifically targeting the economically weaker section of society. The idea is to ensure that people who could not afford spending high premiums on different pensions and insurance schemes could do so now easily and secure the financial future of their loved ones. The essential plans revolve around pension, life, and accidental insurance. Of this, the latter is called Pradhan Mantri Suraksha Bima Yojana.

Following are the basic features of the policy –

Eligibility criteria

The PMSBY scheme is available for both the Indian residents and NRIs. You need to be between the age group of 18 to 70 years. Also, you must hold an active savings account in a public or private sector bank for participating in the policy A Government authorised ID proof is also a must to be eligible for the scheme.

Payable premium

You can buy the insurance plan at an extremely low rate, which is INR 12 annually. Of this, the actual insurance per person is INR 10 while the sum of INR 1 gets charged towards expense reimbursement to entities like agents, micro, BC, or corporates and another INR 1 gets charged towards the reimbursement of administrative expenses of participating banks. The INR 12 insurance premium amount makes accidental insurance affordable for EWS and secures their financial future in case of an accident which leads to partial or total disability or maybe death.

Coverage offered

One of the essential PMSBY policy details is the coverage offered. Despite the low premiums, i.e. INR 12, the insurance pay-out provided to the holder is a whopping INR 2 lakh, if the policyholder faces total disability. If the holder suffers a partial disability, the pay-out is INR 1 lakh.

Categorisation of disabilities

Many are confused about the categorisation of partial and total disabilities. Permanent total disability is the complete and irrecoverable loss of eyesight in both eyes as well as the full and irrecoverable loss of both sets of limbs, i.e. hands as well as legs. Partial disability, on the other hand, is the complete and irrecoverable loss of eyesight in either eye and the irrecoverable loss of one of the either or both sides as well as legs.

Insurance pay-out

Although the scheme is open to both Indians and NRIs, the insurance pay-out happens only in INR since the PMSBY is an accidental insurance policy launched and meant for Indians. When an NRI policyholder family files claim for the insurance, the pay-out gets processed in INR, and the amount gets credited in the NRE or NRO account linked to the bank account.

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