Pradhan Mantri Suraksha Bima Yojana (PMSBY)

Pradhan Mantri Suraksha Bima Yojana (PMSBY) is a government-backed accident insurance scheme that was launched in 2015. The scheme is designed to provide affordable and easily accessible accidental death and disability coverage to people from all walks of life. The PMSBY scheme is an initiative by the Government of India to provide a safety net to the people of the country, especially those from the economically weaker sections.

The PMSBY scheme provides a sum assured of Rs. 2 lakhs in case of accidental death or total permanent disability and a sum assured of Rs. 1 lakh in case of partial permanent disability. The scheme is available to all Indian citizens between the age group of 18 to 70 years who have a savings bank account. The annual premium for the scheme is just Rs. 12, making it one of the most affordable insurance schemes available in the country.

The PMSBY scheme is managed by the General Insurance Corporation of India (GIC) and is offered through various public and private sector banks. The scheme is renewable on an annual basis and the premium is automatically deducted from the bank account of the policyholder. The scheme also offers a grace period of 30 days for renewal.

The PMSBY scheme is a no-frills insurance product that offers basic coverage against accidental death and disability. The scheme does not cover natural death or death due to illness. The scheme also does not cover death or disability due to suicidal attempts, intoxication or drug abuse. The scheme also excludes coverage for people engaged in hazardous activities such as racing, mountaineering, aviation, and other such activities.

The PMSBY scheme has been successful in providing affordable insurance coverage to a large number of people across the country. As per the data released by the government, more than 20 crore people have enrolled in the scheme since its launch in 2015. The scheme has also helped in increasing the penetration of insurance in the country.

The PMSBY scheme has played a significant role in promoting financial inclusion in the country. The scheme has encouraged people from all walks of life to invest in insurance and has provided them with a safety net against accidental death and disability. The scheme has also helped in creating awareness about the need for insurance and has encouraged people to save for their future.