Pradhan Mantri Suraksha Bima Yojana

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Pradhan Mantri Suraksha Bima Yojana
CountryIndia
Prime Minister(s)Narendra Modi
MinistryFinance
Key peopleLate Arun Jaitley
Launched9 May 2015; 5 years ago (2015-05-09)
StatusActive

Pradhan Mantri Suraksha Bima Yojana (PMSBY, translation: Prime Minister's Safety Insurance Scheme) is a government-backed accident insurance scheme in India. It was originally mentioned in the 2015 Budget speech by Finance Minister Late Arun Jaitley in February 2015.[1] It was formally launched by Prime Minister Narendra Modi on 8 May in Kolkata.[2]

Provisions[edit]

Pradhan Mantri Suraksha Bima Yojana is available to people (Indian Resident or NRI) between 18 and 70 years of age with bank accounts. It has an annual premium of 12 (17¢ US) exclusive of taxes. The GST is exempted on Pradhan Mantri Suraksha Bima Yojana. The amount is automatically debited from the account. This insurance scheme can have one year cover from 1 June to 31 May and would be offered through banks and administered through public sector general insurance companies.[3]

In case of unexpected death or full disability, the payment to the nominee will be 2 lakh (US$2,800) and in case of partial Permanent disability 1 lakh (US$1,400). Full disability has been defined as loss of use in both eyes, hands or feet. Partial Permanent disability has been defined as loss of use in one eye, hand or foot.[4][5] Further, death due to suicide, alcohol, drug abuse, etc. are not covered.

This scheme will be linked to the bank accounts opened under the Pradhan Mantri Jan Dhan Yojana scheme. Most of these account had zero balance initially. The government aims to reduce the number of such zero balance accounts by using this and related schemes.[6] Now all Bank account holders can avail this facility through their net-banking service facility at any time of the year.[7]

Criticism[edit]

A rising loss ratio has forced general insurers to urge the government to hike the premium for the scheme.[8][6]

Results[edit]

As of 31 March 2019, 15.47 crore people have already enrolled for this scheme. 32,176 claims have been disbursed amounting to 6.4352 billion (US$90 million).[9]

In April 2017, Haryana Government has announced that all Haryana residents in the age group of 18–70 years will be covered by PMSBY, wherein the state government would reimburse the premium to the beneficiary.[10]

See also[edit]

References[edit]

  1. ^ Reporter, B. S. (9 May 2015). "Jan Suraksha: Social security for masses, pricing woes for insurers". Business Standard India. Retrieved 31 January 2020.
  2. ^ Vishwanathan, Vivina (8 May 2015). "Banks advertise Pradhan Mantri Bima Yojana ahead of the roll out". Livemint. Retrieved 31 January 2020.
  3. ^ "Pradhan Mantri Suraksha Bima Yojana (PMSBY)-accidental insurance". revexpo.com. Retrieved 31 January 2020.
  4. ^ "Jan Suraksha: Social security for masses, pricing woes for insurers", Business Standard, 8 May 2015
  5. ^ "Banks advertise Pradhan Mantri Bima Yojana ahead of the roll out", Live Mint, 8 May 2015
  6. ^ a b "'Jan Suraksha schemes to help eliminate Jan Dhan's zero balance accounts'". Business Standard. 8 May 2015. Retrieved 9 May 2015.
  7. ^ "'Pradhan Mantri Suraksha Bima Yojana: Accidental death, disability cover@Rs 12 p.a'". Economic Times. 22 September 2016. Retrieved 22 September 2016.
  8. ^ "State-run insurers seek to increase PMSBY premium". The Financial Express (India). Retrieved 22 April 2017.
  9. ^ "Telling Numbers: Enrolment and claims in flagship life, accident insurance schemes". Jan Suraksha. Retrieved 30 April 2017.
  10. ^ "Haryana extends accidental insurance cover to all residents". The Times of India. Retrieved 22 April 2017.