To ensure financial security for the underprivileged section in India, the Narendra Modi Government introduced the Pradhan Mantri Suraksha Bima Yojana (PMSBY), a low-cost scheme of accident insurance that provides very extensive coverage for only ₹20 a year.
The scheme offers a lifeline for millions in that it offers protection against unforeseen accidents without harming their financial positions.
What is Pradhan Mantri Suraksha Bima Yojana (PMSBY)?
PMSBY caters for those between the ages of 18 and 70 years and gives an accident insurance cover of ₹2 lakh in case of death or permanent total disability, and ₹1 lakh for partial disability. The scheme is annual renewable, which provides a safety net that is sustainable for India’s working class and low-income families.
Key Features of PMSBY
- Affordable premium: ₹20 only per year; that’s less than ₹2 per month.
- Wide coverage: For accidental death or complete disability, ₹2 lakh, and ₹1 lakh for partial disability.
- Enrollment is made easy: Both banks and post offices offer PMSBY enrollment requires one to link a savings account.
- Auto-debit option: Automatically gets deducted from the individual’s account without any break in coverage.
Who can apply?
- Those entering the age group of 18-70 years with active maintenance of any bank/post office account.
- No tests or long-winded documentation needed in any way.
How to enroll?
- Walk into your bank branch or BC point, or post office.
- Submit your declaration in the offline or online mode.
- Ensure your account has enough balance for auto-debit.
Pradhan Mantri Jeevan Jyoti Bima Yojana (PMJJBY): Added protection
The PMJJBY scheme offers life insurance to cover death due to any reason with ₹2 lakh coverage for an annual premium of ₹436. Eligible persons (between 18-50 years of age) may sustain this coverage till the age of 55 through annual renewals.