After the highly successful Pradhan Mantri Jan Dhan Yojana (PMJDY), Indian government has launched Pradhan Mantri Suraksha Bima Yojana (PMSBY). Nearly 60% of vehicles plying on Indian roads do not have motor insurance, so during accidental death or major disability, family of the deceased have to arrange money from multiple sources such as borrow from friends, dispose personal belongings such as house, jewelry etc. Read more about the advantages of Jan Dhan Yojana.

How to join PMSBY?

Interested individual will have to fill the form and submit it in the bank along with the proof showing Aadhaar card linked to the bank account before 01st June 2015. Check out why Aadhaar card is now important.

How to renew the policy every year?

For renewal, policy holder will have to again submit the form in the bank along with the above mentioned proof.

How to request the claim:

As of now, there is no declaration by the government. Once the procedure is announced, details would added on the website.

Premium payment process:

Every year, premium amount would be auto-debited from the bank account. It is possible to pay premium for multiple years at one go. For this, policy holder has to request the bank.

Which insurance companies will offer Suraksha Bima Yojana?

New India Assurance, Oriental Insurance Company, National Insurance Company, United India Insurance company. These are the four public sector companies who will offer Suraksha bima. However private companies are also eligible to participate to popularise PMSBY.

Who can buy this Rs.12 insurance policy?

Following are the terms and conditions set by the finance ministry for those interested in buying this policy:

• Person should have Aadhaar Card linked to his/her bank account.
• Within age group 18-70 years

What is the cover provided?

• In case of the accidental death or full disability of policy holder, coverage will be Rs. 2 Lakhs will be offered to the family/nominee of the deceased.
• In case of partial disability, Rs.1 Lakh cover will be given.

Is the cover sufficient?

The main objective of Suraksha Bima Yojana is to provide cover to poor people who cannot afford high premiums. So for this category of people, the cover is much beneficial. As more and more people buy this policy, insurance penetration in India will grow which otherwise is at a very small level.

Who else will contribute to this scheme?

Every year various government department will contribute premium to the insurance companies. This money would be contributed from public welfare fund and other sources which actually is generated from unclaimed money from the insurance. Total amount which would be paid by each department will be decided by the government every year.