What is Pradhan Mantri Jan Suraksha Bima Yojana?
Pradhan Mantri Suraksha Bima Yojana is a government-backed accident insurance scheme in India. It was originally mentioned in the 2015 Budget speech by Finance Minister Arun Jaitley in February 2015. It was formally launched by Prime Minister Narendra Modi on 9 May in Kolkata. As of May 2015, only 20% of India’s population has any kind of insurance, this scheme aims to increase the number.
The Yojana is available to people falling between the age of 18 and 70. It has an annual premium of 12 (18¢ US) excluding service tax, which is about 14% of the premium. The amount will be automatically debited from the account. In the case of accidental death or full disability, the payment to the nominee will be 2 lakh (US$3,000) and in a case of partial Permanent disability 1 lakh (US$1,500). ). Full disability has been defined as loss of use in eyes, hands or feet. Partial Permanent disability has been defined as loss of use in one eye, hand or foot.
Benefits of Pradhan Mantri Jan Suraksha Bima Yojana
- Death Benefit:
In the unfortunate event of a death of the insured member during the period of cover, the sum assured will be paid.
The death benefit for a member under Pradhan Mantri Jeevan Jyoti Bima Yojana cannot exceed Rs. 200,000 even in case the member is covered through multiple bank accounts or through multiple insurers. In such an event, the claim will be payable for the first application (based on the date of enrolment) and the premium on the subsequent covers is liable to be forfeited.
- Maturity/ Surrender Benefit:
There is no maturity or surrender benefit under this plan.
The date of commencement of insurance cover is the date of debit of premium from the insured member’s account for joining the scheme and the insurance cover will be up to 31st May of the subsequent year. Thereafter, the cover can be renewed on the 1st of June every year by debiting the premium to your bank account. The premium is subject to change as specified by the Government of India from time to time.
In case members wish to join the scheme post 1st of June, he/ she can do so with the payment of full year’s premium and submission of requisite documents/declaration, if any, as specified by scheme rules. The enrolment rules would be as specified by the Government of India from time to time
For new members enrolling into the scheme the risk will not be covered during the first 45 days from the date of enrollment into the scheme (lien period) and in case of death (other than due to accident) during lien period, no claim would be admissible
- Tax Benefits:
Income Tax benefits/exemptions are as per the applicable income tax laws in India, which are subject to change from time to time. Please consult your tax advisor for details.
Highlights of Pradhan Mantri Jan Suraksha Bima Yojana
- Eligibility: Savings Bank (SB) Account holders between 18 years (completed) and 50 years (age nearer birthday) who have given the consent to join the scheme / enable auto-debit, as per the modality, will be enrolled into the scheme.
- Policy period: The cover shall be for one year period starting from June 1, 2015, to May 31, 2016, for which option to join / pay by auto-debit from the designated savings bank account on the prescribed forms will be required to be given by May 31, 2015, extendable up to May 31, 2016.
- Premium: Rs. 330 (per annum).
- Payment Mode: The premium will be directly auto-debited by the bank from the subscribers’ savings bank account. This is the only mode available currently.
- Risk Coverage: Sum Assured of Rs. 2 Lakh on the death of the Insured member for any reason is payable to the Nominee.