In his budget speech on 1 Mar 2015, Finance Minister Shri Arun Jaitley said,
“A large proportion of India’s population is without insurance of any kind, health, accidental or life. Worryingly, as our young population ages, it is also going to be pension-less. Encouraged by the success of the Pradhan Mantri Jan Dhan Yojana (PMJDY), I propose to work towards creating a universal social security system for all Indians that will ensure that no Indian citizen will have to worry about illness, accidents or penury in old age,”.
The Schemes were launched by Prime minister on 9 May 2015.
In this article we are discussing the details of the scheme named Pradhan Mantri Suraksha Bima Yojana.
- Eligibility: The scheme is available to people in the age group of 18 to 70 years holding a bank account.
- Premium: Rs 12 per annum.
- Policy period:The cover shall be for one year period starting from June 1, 2015 to May 31, 2016 for which option to join / pay by auto-debit from the designated Savings Bank account on the prescribed forms will be required to be given by May 31, 2015 – extendable up to August 31, 2015. For the saving A/c holder joining after May 31, 2015 and on or before August 31, 2015 the cover shall end on May 31, 2016.
- Payment Mode:The premium will be deducted by the bank from the subscribers account through auto-debit process. There is no alternative mode avaiable.
- Risk Coverage: Total coverage (sum-insured) under the scheme is Rs. 2 Lakh.
| Sl. No | Conditions | Sum Insured |
| I) | Death | Rs. 2 Lakh |
| II) | Total and irrecoverable loss of both eyes or loss of use of both hands or feet or loss of sight of one eye and loss of use of one hand or one foot | Rs. 2 Lakh |
| III) | Total and irrecoverable loss of sight of one eye or loss of use of one hand or one foot | Rs. 1 Lakh |
- Who will implement this Scheme?: The scheme will be offered by all Public Sector General Insurance Companies and all other insurers who are willing to join the scheme and tie-up with banks for this purpose.
- Tax Benefit: The premium paid will be tax-free under section 80C and also the proceeds amount will get tax-exemption u/s 10(10D).But if the proceeds from insurance policy exceed Rs.1 lakh , TDS at the rate of 2% from the total proceeds if no Form 15G or Form 15H is submitted to the insurer.
- Exclusions: Major Exclusions: Intentional self injury, suicide or attempted suicide whilst under the influence of intoxication liqour or drugs, Any loss arising from an act made in breach of law with or without criminal intent.
Application Forms and Claim Forms can be found here: http://www.jansuraksha.gov.in/FORMS-PMSBY.aspx
FAQ: http://www.jansuraksha.gov.in/files/pmsby/ENGLISH/FAQ.pdf
RULES: http://www.jansuraksha.gov.in/Files/PMSBY/English/Rules.pdf
- Resources:
Official website of the scheme: http://www.jansuraksha.gov.in/Default.aspx . National Toll-Free – 1800-180-1111 / 1800-110-001