Another insurance plan Pradhan
Mantri Jeevan Jyoti Bima Yojana was launched with this plan.There are few key
differences between these 2 insurance plans from Govt. of India. But one common
thing is they will target the poor or lower middle class category in our
society who can not afford to buy life insurance. Another social security
scheme Atal Pension Yojana for pension coverage of the unorganised
sector was also launched along with these two. You can check out that plan here. Few
key highlights of this PM Suraksha Bima Yojana (PMSBY) are:
1. Insurance Benefits: PMSBY scheme covers the insurance coverage of an
individual’s accidental disablement and death owing to accidental
injury. PMSBY covers the below disabilities/accidental injuries:
- Total and irrecoverable loss of sight of one eye or loss of use of one hand or foot – Rs.1 lakh
- In case of Death due to accidental injury/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 lakhs
2. Eligibility: Any Indian citizen within the given age group can
join this scheme provided they have a savings bank account.
The person needs a bank account linked with Aadhaar number. In case a
person holds multiple savings bank accounts in one or different
banks, the person can join the scheme only through one savings bank
account.
3. Age Limit: People between the age of 18-70 years can subscribe
to this policy.
4. Documents needed: As of now, Aadhaar is the primary KYC for the
bank account. A copy of the person’s Aadhaar card will be enough to
subscribe.
5. Due Date of Enrolment: At the time of launching, the cover period is
given from 1st June 2015 to 31st May 2016. Subscribers can opt for an
auto-debit option before May 31st for each successive years if they wish to
continue the scheme beyond the first year. Every year before 1st June one
can visit the respective bank and apply for new Suraksha Bima Yojana scheme.
PMSBY
Premium Details
6. Amount of Premium: The Suraksha Bima Yojana insurance premium will be Rs 12
per year, i.e. Rs. 1 per month. This is really strange and we have to wait to
see how much response this life cover provided @ just Rs 1 / month will
receive.
7.
Government Contribution: Govt. will
pay the extra expenses apart from the premium contribution.
Other ministries can co-contribute towards the premium of the beneficiaries.
The contribution amount will be decided from the Public Welfare Fund created
from any unclaimed money in the budget on yearly basis.
8. Terms of Coverage: While opening PM Suraksha Bima Yojana (PMSBY)
one can choose the term as self-renewal & can renew the scheme every
year before 1st June. One can also opt for a long-term option. Bank
will auto-debit annual premium in case long-term risk coverage is chosen.
9. Rejoining the Scheme: If someone exits the scheme at any point of time,
he/she can re-join the scheme in future years. For that the individual needs to
pay the annual premium, subject to the conditions that may be laid down.
10. Payment Mode: Premium amount will be auto-debited from the respective
bank account. Similarly in the case of PMJJBY & APY, no other option is
available as of now.
Tax
Benefits & Scheme Providers of PMSBY
11. Income Tax Benefits: The entire premium paid will be tax-free under section 80C.
The proceeds amount will get tax-exemption under section 10(10D). For all
the proceeds from insurance policy exceeding Rs.1 lakh, TDS from the total
proceeds will be deducted at the rate of 2% if Form 15G or Form 15H is not
submitted to the insuring agency.
12. Implementation Agencies: The Suraksha Bima Yojana will be implemented by
all the public sector general insurance companies such as National
Insurance Company, New India Assurance Company, The Oriental Insurance Co. and
United India Insurance Co. Options has been provided to
other insurance companies to join this scheme by tying up with banks.
Other
Details of Suraksha Bima Yojana
13. Nomination Facility: Nomination facility is available for PMSBY. Nominee
details with relationship should be provided in the form while
applying.
14. Master Policy Holder: On behalf of the subscriber, the participating bank will
be the Master policy holder. The respective general insurance company will
finalize an easy subscriber friendly administration & claim settlement process after
consulting with the banks.
15. Termination of the Coverage: The accident cover will be terminated on any of
the following events.
- On attaining the age of 70 years (age nearest birth day).
- Closure of account with the Bank for insufficiency of balance to keep the insurance active.
- In case the member is covered under more than one account and unconsciously premium is received by the Insurance Company, insurance cover will be restricted to only one such account and the premium will be liable to be forfeited.
- If the insurance cover is stopped due to any technical reasons such as insufficient balance on due date or due to any administrative issues, the same can be restored on receipt of full annual premium. The risk cover will be suspended during this period and respective insurance company will solely decide the restoration of the risk cover.
