The Pradhan Mantri Suraksha Bima Yojana and the Pradhan Mantri Jeevan Jyoti Bima Yojana are insurance schemes launched by the Indian government to ensure that even the poorer sections of our society have some kind of insurance in the face of adverse accidents to help them through financial adversities.
Pradhan Mantri Suraksha Bima Yojana
The Pradhan Mantri Suraksha Bima Yojana (PMSBY) is an accident insurance scheme passed in the year 2015 by the government of India. It is one of the three social security schemes passed by the government of India for the betterment of the people of the nation, especially the poor and the underprivileged. This insurance is aimed to help the ill-fortunate as the premium per year is very minimal and can easily be paid without hurting their pockets. This insurance scheme was launched with hopes to increase the number of people who have an insurance.
People who apply for the Pradhan Mantri Suraksha Bima Yojana need to pay just a minimum fee of Rs. 12/- per year, which can be automatically deducted from their accounts if chosen on or before the 31st of May for the coverage period from 1st June to 31st May on an annual renewal basis.
It is aimed to benefit those who accidentally endure death and partial or full disability. Partial disability refers to the permanent loss of one eye, hand or leg; whereas full disability refers to the permanent loss of either both eyes, both legs or both hands. Exclusions to the scheme include intentional self-harming, suicide or attempted suicide while under the influence of alcohol or drugs and any loss from an act made by breaking the law with or without criminal intent.
Under the Pradhan Mantru Suraksha Bima Yojana, the insurance holder will get 2 lakh rupees in the case of death or full disability. In the case of partial disability, the insurance holder will get 1 lakh rupees. Claim settlement will be made to the bank account of the insured or his nominee in case of death of the account holder.
People who are within the age group of 18 years to 70 years are eligible for this insurance. They must have a savings bank account with which they can subscribe for the Pradhan Mantri Suraksha Bima Yojana scheme. If the subscriber has more than one savings account, then he can apply for the Pradhan Mantri Suraksha Bime Yojana scheme only from one of the accounts.
This scheme’s core idea and goal is to achieve penetration of accident insurance to the poorer sections of the Indian society, making sure that each and every family in a rural community has financial security in the face of unexpected and unfortunate accidents.
Pradhan Mantri Jeevan Jyoti Bima Yojana
The Pradhan Mantri Jeevan Jyoti Bima Yojana (PMJJBY) is a life insurance scheme passed in the year 2015 by the government of India. It is aimed to aid the poor and financially-challenged sections of our society by providing life insurance coverage in the unfortunate event of the demise of the insured person.
People who want to apply for the Pradhan Mantri Jeevan Jyoti Bima Yojana must pay just Rs. 330/- per year which can be automatically deducted from their designated individual bank account if chosen. This is a very minimum fee and can easily be paid without hurting anyone’s pockets. In the case of the insured person passes away, a total of 2 lakh rupees is given to the nominee, thereby making life easier financially during a tough time.
The life insurance cover will be for 1 year starting from 1st of June to 31st of May of the next year. For the savings account holder joining on or after the 1st of June, the cover shall commence from the date of the account holder’s request and end on the 31st of May of next year.
All individuals who are account holders of participating banks within the age group of 18 years to 50 years are eligible to subscribe for the Pradhan Mantri Jeevan Jyoti Bima Yojana. In case of multiple bank accounts held by an individual in one or different banks, the person should join the scheme through one bank account only.
One must be aware that for subscribers enrolling for the first time on or after the 1st of June 2016, insurance cover will not be available for death (other than due to an accident) occurring within the first 45 days from the date of enrolment into the scheme (lien period) and in case of death (other than due to accident) during lien period, no claim will be admissible.
There is a termination of assurance when the account holder attains the age of 55 years or the account linked with the scheme is closed with the bank or there are insufficient funds for debiting the premium.