What is the full form of PMSBY
PMSBY: Pradhan Mantri Suraksha Bima Yojana
PMSBY Stands for Pradhan Mantri Suraksha Bima Yojana. PMSBY is an accident insurance programme that provides coverage for accidental death and disability for people who pass away or become disabled as a result of an accident. It would be a yearly cover that could be renewed. The Public Sector General Insurance Companies (PSGICs) and other General Insurance companies who are willing to provide the product on comparable conditions with the relevant approvals and partner with Banks or the Post Office for this purpose will provide and administer the scheme. Participating banks and post offices are free to work with any such insurance provider to administer the program for their subscribers.
Eligibility For The Pradhan Mantri Suraksha Bima Yojana (PMSBY)
- Everyone with a savings account.
- The age should be between 18 and 70.
- As a primary document for KYC, an Aadhaar card must be provided.
- If the savings bank account and the Aadhaar Card are not connected, a copy of the Aadhaar Card must be submitted with the PMSBY application.
- Only one bank account can be used by the applicant to sign up for the programme.
- All joint account holders are eligible to join the programme.
- Even though the applicant is eligible, if they are an NRI they will still be paid in rupees to the nominee or insured.
- Anyone with a personal bank or post office account who is between the ages of 18 and 70 in one of the partner banks or post offices is eligible to enrol.
- If a person has numerous bank or post office accounts, whether they are held by the same person or separate people, only one of those accounts may be used to apply for the programme.
- The primary KYC for the bank/post office account would be Aadhar.
- A choice to join or pay by auto-debit from the chosen bank account or post office account must be made on the prescribed forms by May 31 of each year for the insurance to be effective for the full one-year period spanning from June 1 to May 31.
- The ability to join later would be available upon payment of the entire annual price. However, applicants may offer an indefinite or longer option for enrolment or auto-debit, provided that the programme is continued and that the terms are kept flexible based on prior experience.
- In the coming years, participants who leave the programme at any time can re-enter it using the aforementioned method.
- In the coming years as long as the programme is still in effect, new entrants into the eligible group from year to year or existing eligible people who didn't participate previously may do so.
Benefits Of The Pradhan Mantri Suraksha Bima Yojana (PMSBY)
- Without investing a lot of money, this health insurance policy provides accidental insurance coverage.
- The policy is available for a little price of 12 rupees.
- If the insured perishes in an accident, the policy will help the dependents financially.
- The insured no longer has to be concerned about forgetting to pay their premiums on time thanks to the auto-debit option.
- The policy offers ongoing coverage and secure processing.
- The insured has the freedom to decide whether to keep the plan going or stop it as they see fit.
- Under Section 80C of the previous income tax code, the plan premiums paid are tax deductible. Additionally, under Section 10(10D) of the Income Tax Act of 1961, the beneficiaries' receipt of up to Rs. 1 lakh is not subject to taxation.
- The policy beneficiaries receive Rs. 2 lakh in the event of the insured's death due to an accident.
- The beneficiaries of the policy are awarded 2 lakh rupees in the event of any Permanent Total Disability.
- The beneficiaries of the policy are granted Rs. 1 lakh in the event of any Permanent Partial Disability.