Learn about the Pradhan Mantri Suraksha Bima Yojana (PMSBY) and how banks will deduct the Rs. 12 premium before May 31. Discover eligibility, benefits, and the renewal process for this crucial accident insurance scheme.
The Pradhan Mantri Suraksha Bima Yojana (PMSBY) is an affordable and straightforward insurance scheme designed to provide financial protection in the event of accidental death or disability. As the renewal period approaches, banks are actively informing account holders about the deduction of the annual premium. Here’s everything you need to know about the scheme, its benefits, and the renewal process.
What is PMSBY?
Launched by the Government of India, PMSBY is an accident insurance scheme offering coverage for accidental death and disability. For a nominal annual premium of Rs. 12 (including GST), account holders receive coverage that can be a crucial financial cushion during unexpected circumstances.
How to Enroll in PMSBY
Enrolling in the PMSBY scheme is straightforward. Eligible individuals, those aged between 18 and 70 with a bank account, can join by:
- Visiting their bank and filling out a physical application form.
- Applying online through their bank’s net banking portal.
When enrolling, it is compulsory to provide consent for auto-debit, ensuring the annual premium is deducted automatically from your bank account.
Premium Deduction and Renewal
For those already enrolled, the premium of Rs. 12 is auto-debited from the bank account in one installment each year. Typically, this deduction occurs between May 25 and May 31. To continue coverage, ensure that your account has sufficient balance during this period. If you decide to opt out of the scheme, you must submit a cancellation request to your bank before the renewal date.
Coverage Period of PMSBY
The PMSBY coverage period runs from June 1 to May 31 of the following year. This means that if you wish to maintain your insurance coverage, you need to ensure the renewal premium is paid in May each year.
Eligibility Criteria for PMSBY
- Age: 18 to 70 years
- Must have a bank account
- Enrollment is allowed through one bank account only. If multiple accounts are being debited, contact the banks to rectify this, keeping only one account active for the scheme.
Benefits of PMSBY Scheme
The PMSBY scheme offers substantial coverage for a minimal premium. Here are the key benefits:
- Accidental Death: Rs. 2 lakh
- Total and Irrecoverable Loss:
- Both eyes or both hands/feet: Rs. 2 lakh
- One eye and one hand/foot: Rs. 1 lakh
- Partial Disability:
- Loss of sight in one eye or loss of use of one hand/foot: Rs. 1 lakh
Claim Settlement
In case of an unfortunate event leading to a claim under PMSBY scheme, the settlement is made directly to the bank account of the insured or their nominee. It’s crucial to ensure that nominee details are accurately updated to avoid any complications during claim processing.
Important Points to Remember
- Ensure your bank account has enough balance for the premium deduction between May 25 and May 31.
- Contact your bank if you have multiple accounts being debited.
- Keep your nominee details updated for seamless claim settlement.
- Understand that PMSBY covers only accidental death and disability; natural death causes like a heart attack are not covered.
Final Thoughts
The Pradhan Mantri Suraksha Bima Yojana is a beneficial scheme offering significant financial protection at a very low cost. Staying informed and ensuring timely renewal can provide peace of mind and security for you and your loved ones. Make sure to check your bank communications and ensure your enrollment and renewal processes are seamless.
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