Pradhan Mantri Suraksha Bima Yojana (PMSBY) – Insurance Sirf Ek Rupay Mein – Rs. 12 a Year Accidental Death & Disability Cover

This post is written by Shiv Kukreja, who is a Certified Financial Planner and runs a financial planning firm, Ojas Capital in Delhi/NCR. He can be reached at [email protected]

“Insurance sirf ek rupay mein – Aisa Kaise?” The boy asks his father and the father’s response makes his daughter emotional. You must have watched this commercial on your TV sets many a times this week as the government has launched its Jan Suraksha initiative very aggessively.

Prime Minister Mr. Narendra Modi is in Kolkata today and will be launching Pradhan Mantri Suraksha Bima Yojana (PMSBY), Pradhan Mantri Jeevan Jyoti Bima Yojana (PMJJBY) and Atal Pension Yojana (APY) from there. These schemes are targeted to provide social security benefits to a large percentage of the low income earning population in India.

Pradhan Mantri Suraksha Bima Yojana (PMSBY)

Policy Coverage – The scheme offers to provide you or your family a cover of up to Rs. 2 lacs in case of any mishappening, resulting into death or disability of the insured. In case of death or full disability, you or your family will get Rs. 2 lacs and in case of partial disability, you will get Rs. 1 lac. Full disability means loss of both eyes or both legs or both hands, whereas partial disability means loss of one eye or one leg or one hand.

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Age of the Insured – Savings bank account holders aged between 18 years and 70 years are eligible to apply for this scheme. People aged more than 70 years will not be able to get the benefits of this scheme.

Premium Amount – It costs you just Rs. 12 in annual premium for having an accidental death or disability cover of Rs. 2 lacs under this scheme. It works out to be just Re. 1 a month, which is extraordinarily low. Again, your age has nothing to do with the premium payable for your insurance cover under this scheme as the premium is fixed at Rs. 12 for a cover of Rs. 2 lacs.

Period of Insurance – You will remain insured for a period of one year from June 1, 2015 to May 31, 2016. Next year onwards as well, the risk cover period will remain to be June 1 to May 31.

Administrators for PMSBY – The scheme would be offered / administered by many of the general insurance companies, both in the public sector as well as in the private sector. Participating banks will be free to engage any such general insurance company for implementing the scheme for their subscribers. National Insurance Company Limited, Oriental Insurance Company Limited and ICICI Lombard are some of the companies which would be offering this scheme.

Auto Debit Facility – You will be required to provide your consent for auto debit of Rs. 12 as the annual premium from any one of your bank accounts at the time of enrolling for this scheme. This premium of Rs. 12 will get deducted from your savings bank account through auto debit facility every year between May 25 and June 1.

Last Date for Enrolment – May 31, 2015 is the last date for getting enrolled for this scheme, but the government has given an extension of three months up to August 31, 2015 for us to get enrolled and give auto-debit consent for this scheme. This enrolment period may be extended by the government for another period of three months, up to November 30, 2015.

Those joining this scheme subsequent to May 31, 2015 will have to pay the full year’s premium of Rs. 12 and agree to specified terms of this scheme.

Toll-Free Numbers – 1800 110 001 / 1800 180 1111 – These two are the National Toll-Free Numbers for this scheme. You can check the state-wise toll-free numbers from this link – State-Wise Toll Free Numbers

Service Tax Exempt – Yes, Finance Minister Mr. Arun Jaitley has proposed to exempt this scheme from service tax. So, you will not be charged any service tax on the premium payable.

Know Your Customer (KYC) – Aadhaar Card issued by the UIDAI will be the primary requirement for your KYC under this scheme.

Application Form – Here you have the link to the application form for you to enroll yourself for this scheme – Application Form for PMSBY

Pradhan Mantri Jeevan Jyoti Bima Yojana (PMJJBY)

Age of the Insured – Bank account holders aged between 18 and 50 years are eligible to apply for this scheme. So, if you are aged more than 50 years, you are not eligible to enroll yourself for this scheme. But, once enrolled, you can continue with this scheme till you attain the age of 55 years.

Premium Amount – Less than Re. 1 a day or an annual premium of Rs. 330 is what you need to pay to get a life cover of Rs. 2 lacs. No matter what your age is, the premium is fixed at Rs. 330 for a life cover of Rs. 2 lacs. This annual premium of Rs. 330 has been fixed for the first three years from June 1, 2015 to May 31, 2018, after which it will again be reviewed based on the insurers’ annual claims experience.

Period of Insurance – June 1st, 2015 to May 31st, 2016 is the period for which this scheme will cover all kind of risks to your life in the first year of operation. Next year onwards as well, the risk cover period will remain June 1 to May 31.

LIC as the Administrator – The scheme would be offered / administered by the Life Insurance Corporation (LIC) and other life insurance companies like SBI, ICICI etc. through their tie ups with the interested banks like SBI, ICICI, Canara Bank etc. Participating banks are free to engage any such life insurance company for implementing this scheme for their subscribers.

Auto Debit Facility – Annual premium of Rs. 330 will get deducted from your savings bank account through auto debit facility. You will have to give your consent for auto debit of premium from any one of your bank accounts at the time of enrolling for this scheme.

Last Date for Enrolment – May 31, 2015 is the last date for getting enrolled for this scheme, but the government has given an extension of three months up to August 31, 2015 for us to get enrolled and give auto-debit consent for this scheme. This enrolment period may be extended by the government for another period of three months, up to November 30, 2015.

Those joining this scheme subsequent to May 31, 2015 will have to pay the full year’s premium of Rs. 330 and submit a self-certificate of good health in the prescribed proforma.

Toll-Free Numbers – 1800 110 001 / 1800 180 1111 – These two are the National Toll-Free Numbers for this scheme. You can check the state-wise toll-free numbers from this link – State-Wise Toll Free Numbers

Service Tax Exempt – Finance Minister Mr. Arun Jaitley has proposed to exempt this scheme from service tax. So, you will not be charged any service tax on the premium payable.

Know Your Customer (KYC) – Aadhaar Card issued by the UIDAI will be the primary requirement for your KYC under this scheme.

Application Form – Here you have the link to the application form for you to enroll yourself for this scheme – Application Form for PMJJBY

I covered Pradhan Mantri Jeevan Jyoti Bima Yojana yesterday, a scheme which provides life insurance cover of Rs. 2 lacs to its subscribers for an annual premium of only Rs. 330. I think both these schemes are quite attractive and provide a combined cover of Rs. 4 lacs for a premium of just Rs. 342, which works out to be less than Re. 1 a day.

In a country like India, where many members of a family are dependent on the primary earner’s income to survive and grow, I think these schemes would play a very important role in providing a much required social security comfort to the citizens of India. I think the government is doing a wonderful job in taking these initiatives to attract low income group people to get themselves covered against the risks of untimely death or accidental disabilities. I think you should definitely subscribe to both these schemes.

Application Form for PMSBY

312 thoughts on “Pradhan Mantri Suraksha Bima Yojana (PMSBY) – Insurance Sirf Ek Rupay Mein – Rs. 12 a Year Accidental Death & Disability Cover”

  1. Respected Sir/ Madam,
    i want to know i register 330 schema and i have payed Rs. 330 in 31-may-2016. and 31-may-2017 i have no sufficient balance so not pay amount. now what happen in 31-may-2018 ?? now i have sufficient balance.

  2. Sir,
    My sister Expired last Tueday in cardiac arrest with mild Mr and Ar will i able to get the claim.
    needless to mention she had suscribed both the Policy Rs. 12 anf Rs. 330 but we dont know whose name is in the nominee..

    Pls advice…

  3. helloo sir
    if no accident will occures with the bima holder , then the given money by us is valueless ??? so please make my doubt clear

  4. I have also registered for PMSBY . The amount has been deducted from my account immediately.
    Now how can I get my receipts & original Policy documents against the security schemes.
    I must have proof of having these schemes other than the bank account statement showing the debited amount against these schemes.
    Please help immediately!

  5. I’m the consumer of tripura gramin bank and I was going to take policy pmsby and pmjjby. But I was not get any certificate of my policy. I want to know how can I get the certificate.

  6. Respected Sir/ Madam,

    I use SBI Internet Banking and i applied PMSBY before about 25 days but till date no any response to me. Acknowledgement not download, status says that Not Applicable. please tell me solution about it..

  7. Hi.
    My mom made policy with both ?12/- and ?330/- .
    Now she is suffering from Hernia .
    Doctor advised to operation.
    So can my mom get insured money?

  8. Hi..
    This is to complain you that my father G Dasari Veerabhadraiah had passed away in an accident on November 21st 2016. My father had done this insurance in Co-operative bank of chittoor district Andhra Pradesh.I have applied for the insurance claim on 23rd December 2016 in the co-operative bank of palamaner branch 517408.still today the insurance claim had not been claimed.Every time I approach the Bank manager he is passing his days complaining on the insurance company.. What is the minimum notice period for claim. Is this how you treat the middle class family every day walking for the branches..Am really very fed up with this process.I Hope atleast you will reply to me and make it claim as soon as possible

  9. Hi Sir,

    I have enrolled for PMJJBY today 30th Jun’17 but accidentally I selected pay now option twice and amount got deducted Twice. What is the process of de-registering the scheme to get a refund. I was informed that the scheme enrolments are closed on 31st May’17. How can I de-register and get a refund.

  10. what is last date to apply for policy insurance ?
    is it only connect with Government bank or private too can apply for policy insurance ?

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