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PMSBY Scheme: The 12 Rupees Insurance Scheme

The Pradhan Mantri Suraksha Bima Yojana (PMSBY), popularly known as the 12 Rupees insurance scheme is one of the three social security schemes announced by the Modi Government as a part of the 2015 Budget. Despite being a revolutionary scheme, the awareness surrounding it is limited. This limits the number of people leveraging this scheme for their benefit. Through this article, you will understand what PMSBY is and its benefits.

What is PMSBY?

PMSBY is an accident insurance scheme that offers an accidental death and disability cover. It can be renewed annually.

The cover is provided for a one-year period, starting from 1st June to 31st May every subsequent year. The option to join or pay has to be given by 31st May of every year. Subscribers must give their consent for auto-debit before 31st May for successive years to extend the cover beyond one year.

Features of PMSBY

Let’s now look at the key features of the 12 Rupees insurance scheme:

1. Coverage

  • PMSBY offers risk coverage of Rs 2 lakh for accidental death and permanent total disability.
  • Permanent partial disability cases get a Rs 1 lakh claim payment.
  • Rs 12 per annum is deducted from the bank holder’s account by the auto-debit facility in just one instalment as a premium
  • The cover will be in addition to the subscriber’s other insurance plans, if any. However, the scheme is not a Mediclaim; that is, there is no provision for reimbursement of hospital expenses.

2. Inclusions and exclusions

  • The scheme only covers death or disability caused due to an accident. Death caused by natural reasons like a heart attack will not be covered.
  • Death caused by suicide is also not covered. The family will not be able to claim any insurance benefit should the subscriber commit suicide.

3. Eligibility

  • Bank account-holders (single or joint) in the age group of 18-70 are eligible to join the scheme. In case you have multiple bank accounts in one or multiple different banks, you will be eligible to join the scheme from one bank account only.
  • If you have a joint account, all holders of the account may join the scheme.
  • NRIs are also eligible, but if a chance for claim benefit arises, the amount will be paid only in Indian currency.

4. Cover period

The cover will be invalid to avail in any of the following events:

  • Subscriber attains age 70.
  • Bank accounts get closed, insufficiency of balance in the bank account to keep the insurance in force.

What to do in case of a claim?

Under PMSBY, death due to an accident has to be confirmed by documentary evidence. The accident should also be reported to police in case of incidents like road, rail, and other vehicular accidents and death by drowning or involving any crime. A hospital record is required in case of snakebite, fall from a tree, etc.

The 12 Rupees insurance scheme is a great initiative by the PM Narendra Modi government. At the one-time premium payment of Rs. 12, policyholders are covered for death or disability due to an accident. You can enroll in this scheme with ease through an insurance company or nearby bank.

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