Suraksha Bima Yojana (PMSBY): Benefits, Premium, Coverage

India’s honourable Finance Minister Shri Arun Jaitley announced Pradhan Mantri Suraksha Bima Yojana (PMSBY) to cover India’s poor and underprivileged people under social security. The scheme will be launched very soon and was announced on the new government’s first full budget on 28th Feb 2015.

Objective

Currently it is almost impossible for poor people to buy any kind of insurance policy to due to unaffordable premiums. Once this scheme is launched insurance penetration will widen and it is believed that everyone would get a minimum basic cover.

Public sector general insurance companies and others wishing to participate will offer PMSBY scheme.

Benefits of Suraksha Bima Yojana

  • Premium: Cheapest insurance premium of just Rs. 12 per year. (As per my knowledge, this is cheapest insurance premium in the world). This amount would be auto-debited from the policy holder’s account directly.

Coverage:

  • Accidental death risk and full disability of Rs. 2 Lakh would be covered under this bima yojna.
  • Rs. 1 Lakh coverage will also be provided for partial disability
  • Full disability includes: Total and irrecoverable loss of both eyes/hands/feet/sight of one eye. And loss of use of hands or foot.
  • Partial disability includes: Total and irrecoverable loss of sight of one eye or loss of one hand or foot
  • During the first 45 days, claim for only death due to accident will only be accepted.
  • Cover will be terminated once policy holder reaches the age of 70 years (age nearest birth day)

Eligibility:

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  • Age limit: 18 – 70 years
  • Bank account is must

(Note: Once more details such as how to get this insurance, terms and conditions etc. are announced, same would be updated on the blog)

This announcement comes after the super successful and Guiness record winning scheme Jan Dhan Yojana which was launched in 2014. This yojana had similar social security as the main objective which aimed to provide basic bank account in every Indian household from rural India where access to banking facility had been very difficult. PMJDY provides with zero balance saving bank account with many other benefits such as life cover and accident insurance.

Also read about soon to be launched Pradhan Mantri Jeevan Jyoti Bima Yojana which will cover natural and accidental death at just Rs. 330 per year one of the cheapest in India.

Other private insurance providers in India offering low cost policies in India as of now are:

  • Royal Sundaram – accident insurance @ Rs. 2 per day
  • Reliance Life – One crore life cover plan @ Rs. 15 per day (450/month)
  • Aviva life insurance @ Rs. 16/day

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