The Indian government, as a part of its mission to provide social security to its citizens, has introduced various schemes, one such being the Pradhan Mantri Suraksha Bima Yojana (PMSBY). This affordable, government-backed accident insurance scheme aims to provide protection against disability or death due to an accident. Understanding the coverage and the benefits of this initiative throws light on its significance and its contribution to social security in India.
Coverage of Pradhan Mantri Suraksha Bima Yojana
This annual insurance scheme provides coverage against accident-induced disability or demise. While the regulations and terms of this scheme are subject to change, here are a few essential aspects of Pradhan Mantri Suraksha Bima Yojana coverage:
1. Death and Disability Cover:
 In the unfortunate incident of an accident leading to a policyholder’s demise, the scheme offers a compensation amount of INR 2 lakhs to the nominee. The same compensation amount applies if the policyholder becomes fully disabled due to an accident. In the case of partial disability, the compensation stands at INR 1 lakh.
2. Age Limit:Â
The scheme is available for people aged between 18 and 70.
3. Annual Premium:Â
The yearly premium for availing this coverage is minimal, standing at INR 12, making it accessible to all sections of society.
Annually, the premium amount is auto-debited from the policyholder’s linked account, ensuring hassle-free renewal. However, it’s essential to maintain the necessary balance in the account for successful auto-debit.
Benefits of Pradhan Mantri Suraksha Bima Yojana
The Pradhan Mantri Suraksha Bima Yojana offers ample benefits that align this scheme with the project of social security. Below are a few benefits it offers:
1. Affordability:
With an annual premium of INR 12, PMSBY ranks highly in terms of affordability, thereby making insurance accessible to the economically weaker sections of society.
2. Easy Enrollment:Â
The enrollment process is straightforward. Interested individuals can enroll through their bank, net banking, or other mediums provided by their bank.
3. Tax Benefit:
In addition to providing life coverage, PMSBY also offers health insurance tax benefits. The premium paid towards PMSBY is eligible for tax deduction under Section 80C of the Indian Income Tax Act. This aspect not only makes the scheme economically efficient but also encourages more people to get insured.
4. Extensive Coverage:Â
Despite its low premium, the scheme does not compromise on the coverage amount. It provides an efficient coverage amount that can bring considerable financial relief to the policyholder or his/her family during distressing times.
5. Auto-Renewal:Â
The auto-renewal feature ensures the policyholder does not miss out on the continuous benefits of the scheme because of missed payments.
Breaking Down Barriers to Insurance
Considering the number of uninsured individuals in India, initiatives like Pradhan Mantri Suraksha Bima Yojana are vital. They not only provide coverage but also help in promoting the culture of insurance. The main highlights are its affordability, easy process, considerable coverage, and health insurance tax benefits, which play pivotal roles in motivating more individuals to enroll.
The Indian government’s effort to uplift economic conditions and provide social security through insurance schemes such as PMSBY underscores its commitment to the nation’s overall development. Such schemes also contribute to reduced dependency on loans during adverse situations, by ensuring that financial hurdles can be overcome without incurring debt.
To sum up, make sure to understand the coverage and benefits thoroughly before enrolling in any insurance policy. It is essential to verify if the scheme matches your requirement and its benefits align with your financial planning. Despite its significant offerings, Pradhan Mantri Suraksha Bima Yojana might not be a substitute for a comprehensive health insurance policy, but it proves an efficient backup plan for those who can’t afford costly insurance policies. By combining such government schemes with personalized insurance plans, one could ensure all-around financial stability and secure their future.
