Our India is a developing country. With the advancement of technology, our country is progressing each day. But still, there is a section of the society, where people are staying in rural areas that are unable to opt for the earlier insurance policies. They have been introduced to the concept of insurance policies which are operated by various banks and post offices a decade ago. But the high premium issues acted as a barrier for them to apply for those accidental insurance schemes. In order to combat this problem, a new insurance scheme was introduced by Prime Minister Sri Narendra Modiji on 9th May 2015.This new scheme came to be known as Pradhan Mantri Suraksha Bima Yojana (PMSBY).The enrolling period for this scheme began on 1st June 2015 and continued until 31st May 2016.
Highlights of the scheme:
1) This PMSBY scheme was introduced by the Government of India that provided a cover of 2lakhs for the family of the scheme holder in case of an accident.
2) The eligible persons who joined this scheme had to pay Rs12 per year.
3) Any person who 18 years or above (till 70) were eligible for this scheme.
4) This accidental insurance is renewable annually by the applicant.
5) Banks like SBI provided an auto debit mode for the deduction of Premium Amount from the bank account of the insurance holder.
6) The amount of Premium to be paid was only 12(INR).
7) The primary KYC for that scheme was Aadhar Card of the applicant.
8) There would be termination of the policy if the applicant attained an age above 70 years.
9) The policy may also be terminated if there was insufficient balance in the account which would provide the premium amount.
Benefits of the scheme:
The premium value was only Twelve rupees which would be affordable by the poor section of the society. Thus, this scheme when introduced, it helped them a lot. This scheme aimed to reach those people after the successful implementation of the Pradhan Mantri Jan Dhan Yojana.
Claiming process in the scheme:
The claiming process for the PMSBY scheme is similar to that claiming other insurance policies from either private or government banks. However, one should be ready with the required documents and they need to inform the bank regarding the accident. The claim should be submitted to the bank from which the PMSBY has been bought. Moreover, the claim has to be submitted within 30 days after the accident took place.After the verification is carried out, then the bank would provide the insurance amount to the nominee of the account holder.
The PMSBY insurance scheme proved to be a very powerful weapon to deal with accidental issues for a large number of people.As the Premium amount was very less, so there was a huge enrollment.It provided a recovery of 2lakhs(INR) for the deaths of the people due to accidents and 1 lakh(INR) for those who suffered from a loss of sight of the accident, or loss of hands or legs that caused disability.The participating banks like SBI also follow the same guidelines which are mentioned under the scheme.Thus, it has helped numerous people to look after the family of the deceased people along with the other accident victims.