Pay Rs 20 for Rs 2 lakh cover: What PM Suraksha Bima Scheme is all about

PM Suraksha Bima Yojana, which provides insurance for death or disability due to accidents, has settled approximately 173,000 claims since its launch in May 2015

The Centre has processed and settled 96.55% of claims filed under the PM Suraksha Bima Yojana as of February, disbursing Rs 2,610 crore in total, according to a Finance Ministry official. The scheme, which provides insurance for death or disability due to accidents, has settled approximately 173,000 claims since its launch in May 2015. Currently, it covers 432.9 million people. 

What is PM Suraksha Bima Yojana?

The Pradhan Mantri Suraksha Bima Yojana, introduced by Prime Minister Narendra Modi, is a government-sponsored accident insurance scheme. It offers financial protection against accidental death and disabilities to individuals aged 18 to 70. According to the finance ministry, Suraksha Bima Yojana requires an annual premium of Rs 20 per individual and offers a payout of Rs 2 lakh for accidental death or total disability, and Rs 1 lakh for partial permanent disability.

What's excluded?

Suicide-related deaths.

Partial disabilities not resulting in total loss.

Temporary disabilities.

How to register for PM Suraksha Bima Yojana?

Individuals can register through participating banks or insurance companies, with many banks facilitating online policy acquisition via internet banking. Registration can also be done by sending a text message from a registered mobile number to the toll-free numbers provided.

Benefits of PM Suraksha Bima Scheme

1. The scheme offers a renewable accidental death insurance cover each year.

2. The annual premium is Rs 20 per individual

3. Automatic premium deduction from the subscriber's bank account.

4. Subscribers have the option to renew the scheme annually or opt for long-term enrollment.

5. Tax benefits are available under Section 80C on premiums paid.

Claim process

To claim benefits, the insured or nominee must inform the bank immediately after an accident. Required documents, including the claim form, FIR, and death or disability certificates, must be submitted within 30 days. The bank then forwards the case to the insurance company for verification and processing, aiming to complete the process within 30 days.

Eligibility and required documents

The scheme is open to individuals aged 18 to 70 with a savings account. The Aadhaar card is the primary document required for KYC purposes, and if the bank account is not linked with Aadhaar, a copy must be submitted with the application form. The scheme allows for easy enrolment with minimal documentation.