PMSBY Renewal : One Year Accident Insurance Scheme
PMSBY Renewal : One Year Accident Insurance Scheme
Published on Mar 04, 2023
PMSBY Renewal : One Year Accident Insurance Scheme
PMSBY Renewal : PMSBY (Pradhan Mantri Suraksha Bima Yojana) is a one year accident insurance scheme, auto renewed every year.
The PMSBY scheme is open to anyone between the ages of 18 and 70 and with a CSB Savings Bank Account. There is an annual premium of Rs.12. The amount will be automatically debited from the linked savings account.
In case of accidental death or full disability, the payment to the nominee will be Rs. 2 lakh and in case of partial Permanent disability Rs.1 lakh. Full disability has been defined as total and irrecoverable loss of both eyes or loss of use of both hands or feet. Partial Permanent disability has been defined as total and irrecoverable loss of one eye or loss of use of one hand or foot.
Provisions
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. The accident 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.
In case of accidental death or full disability, the payment to the nominee will be Rs.2 lakh (US$2,800) and in case of partial Permanent disability Rs.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.[5][6] 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. Now all Bank account holders can avail this facility through their net-banking service facility at any time of the year
What is the nature of the scheme?
The scheme will be a one year cover Personal Accident Insurance Scheme, renewable from year to year, offering protection against death or disability due to accident.
What would be the benefits under the scheme and premium payable? The benefits are as follows:
1. Death : Rs. 2 Lakh
2. 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 hand or foot : Rs. 2 Lakh
3. Total and irrecoverable loss of sight of one eye or loss of use of one hand or foot : Rs. 1 Lakh
How will the premium be paid?
The premium will be deducted from the account holder’s savings bank account through ‘auto debit’ facility in one installment, as per the option to be given on enrolment. Members may also give one-time mandate for auto-debit every year till the scheme is in force, subject to re-calibration that may be deemed necessary on review of experience of the scheme from year to year.
Who is our insurance partner for the scheme?
Our insurance partner for PMSBY is United India Insurance Company
Who will be eligible to subscribe?
All savings bank account holders of CSB Bank in the age 18 to 70 years will be entitled to join. In case of multiple saving bank accounts held by an individual in one or different banks, the person would be eligible to join the scheme through one savings bank account only.
Are NRIs eligible to join the scheme?
Yes. NRIs can also join the scheme.
What is the enrolment period and modality?
The initial insurance cover period of the scheme is from June 1, 2015 to May 31, 2016 for subscribers who joined the scheme before May 31, 2015. For enrolments after May 31, 2015, scheme validity will be till May 31, 2016 and risk will commence from the first day of following month from the date of debit of premium from customers’ accounts. The enrolment period is till August 31, 2015. Customers have to submit the duly filled in application forms at the branches for enrolling to the scheme.
Is enrolment possible after August 31, 2015?
Enrolment subsequent to this date will be possible prospectively on payment of full annual payment and submission of a self-certificate of good health. For subsequent enrolments, the scheme validity will be till May 31, 2016 only and risk will commence from the first day of following month from the date of debit of premium from customers’ accounts
What is the procedure for renewal?
Subscribers who wish to continue beyond the first year will be expected to give their consent for auto-debit before each successive May 31st for successive years, irrespective of their date of enrollment. Delayed renewal subsequent to this date will be possible on payment of full annual premium and submission of a self-certificate of good health.
When can the assurance on life of the member terminate?
The accident cover of the member shall terminate / be restricted accordingly on any of the following events:
i. On attaining age 70 years (age neared birth day).
ii. Closure of account with the Bank or insufficiency of balance to keep the insurance in force.
iii. In case a member is covered through more than one account and premium is received by the insurance company inadvertently, insurance cover will be restricted to one account and the premium shall be liable to be forfeited.
