Some Frequently Asked Questions on PRADHAN MANTRI SURAKSHA BIMA YOJANA

Q1. What is the nature of the scheme?

The scheme will be a one year cov­er Per­son­al Acci­dent Insur­ance Scheme, renew­able from year to year, offer­ing pro­tec­tion against death or dis­abil­i­ty due to accident.

Q2. What would be the ben­e­fits under the scheme and pre­mi­um payable?

The ben­e­fits are as follows:

	Table of Benefits	Sum Insured
a.	Death	Rs. 2 Lakh
b.	Total and irrecov­er­able loss of both eyes or loss of use of both hands or feet or loss of sight of one eye and loss of use of hand or foot	Rs. 2 Lakh
c.	Total and irrecov­er­able loss of sight of one eye or loss of use of one hand or foot	Rs. 1 Lakh

Pre­mi­um payable is Rs.12/- per annum per member.

Q3. How will the pre­mi­um be paid?

The pre­mi­um will be deduct­ed from the account holder’s sav­ings bank account through

‘auto deb­it’ facil­i­ty in one install­ment, as per the option to be giv­en on enrol­ment. Mem­bers may also give one-time man­date for auto-deb­it every year till the scheme is in force, sub­ject to re-cal­i­bra­tion that may be deemed nec­es­sary on review of expe­ri­ence of the scheme from year to year.

Q4. Who will offer / admin­is­ter the scheme?

The scheme would be offered / admin­is­tered through the Pub­lic Sec­tor Gen­er­al Insur­ance Com­pa­nies (PSG­ICs) and oth­er Gen­er­al Insur­ance com­pa­nies will­ing to offer the prod­uct with nec­es­sary approvals on sim­i­lar terms, in col­lab­o­ra­tion with par­tic­i­pat­ing Banks. Par­tic­i­pat­ing banks will be free to engage any such gen­er­al insur­ance com­pa­ny for imple­ment­ing the scheme for their subscribers.

Q5. Who will be eli­gi­ble to subscribe?

All sav­ings bank account hold­ers in the age 18 to 70 years in par­tic­i­pat­ing banks will be enti­tled to join. In case of mul­ti­ple sav­ing bank accounts held by an indi­vid­ual in one or dif­fer­ent banks, the per­son would be eli­gi­ble to join the scheme through one sav­ings bank account only.

Q6. What is the enrol­ment peri­od and modality?

Ini­tial­ly on launch for the cov­er peri­od from 1st June 2015 to 31st May 2016 sub­scribers are expect­ed to enroll and give their auto-deb­it option by 31st May 2015, extend­able up to 31st August 2015. Enrol­ment sub­se­quent to this date may be pos­si­ble prospec­tive­ly on pay­ment of full annu­al pay­ment, sub­ject to con­di­tions that may be laid down.

Sub­scribers who wish to con­tin­ue beyond the first year will be expect­ed to give their con­sent for auto-deb­it before each suc­ces­sive May 31st for suc­ces­sive years. Delayed renew­al sub­se­quent to this date may be pos­si­ble on pay­ment of full annu­al pre­mi­um, sub­ject to con­di­tions that may be laid down.

Q7. Can eli­gi­ble indi­vid­u­als who fail to join the scheme in the ini­tial year join in sub­se­quent years?

Yes, on pay­ment of pre­mi­um through auto-deb­it. New eli­gi­ble entrants in future years can also join accordingly

Q8.  Can indi­vid­u­als who leave the scheme rejoin?

Indi­vid­u­als who exit the scheme at any point may re-join the scheme in future years by pay­ing the annu­al pre­mi­um, sub­ject to con­di­tions that may be laid down.

Q9. Who would be the Mas­ter pol­i­cy hold­er for the scheme?

Par­tic­i­pat­ing Banks will be the Mas­ter pol­i­cy hold­ers. A sim­ple and sub­scriber friend­ly admin­is­tra­tion & claim set­tle­ment process shall be final­ized by PSG­ICs / cho­sen insur­ance com­pa­ny in con­sul­ta­tion with the par­tic­i­pat­ing bank.

Q10. When can the acci­dent cov­er assur­ance terminate?

The acci­dent cov­er of the mem­ber shall ter­mi­nate / be restrict­ed accord­ing­ly on any of the fol­low­ing events:

1. On attain­ing age 70 years (age neared birth day).
2. Clo­sure  of  account  with  the  Bank  or  insuf­fi­cien­cy  of  bal­ance  to  keep  the insur­ance in force.

iii.     In case a mem­ber is cov­ered through more than one account and pre­mi­um is received by the insur­ance com­pa­ny inad­ver­tent­ly, insur­ance cov­er will be restrict­ed to one account and the pre­mi­um shall be liable to be forfeited.

Q11. What will be the role of the insur­ance com­pa­ny and the Bank?

1. The scheme will be admin­is­tered by PSG­ICs or any oth­er Gen­er­al Insur­ance com­pa­ny which is will­ing to offer such a prod­uct in part­ner­ship with a bank / banks.
2. It will be the respon­si­bil­i­ty of the par­tic­i­pat­ing bank to recov­er the appro­pri­ate annu­al pre­mi­um in one install­ment, as per the option, from the account hold­ers on or before the due date through ‘auto-deb­it’ process and trans­fer the amount due to the insur­ance company.

iii.     Enroll­ment form / Auto-deb­it autho­riza­tion / Con­sent cum Dec­la­ra­tion form in the pre­scribed pro­for­ma shall be obtained, as required, and retained by the par­tic­i­pat­ing bank. In case of claim, PSGIC / insur­ance com­pa­ny may seek sub­mis­sion of the same. PSGIC / Insur­ance Com­pa­ny also reserve the right to call for these doc­u­ments at any point of time.

Q12. How would the pre­mi­um be appropriated?

1. a. Insur­ance Pre­mi­um to PSGIC / oth­er insur­ance com­pa­ny: 10/- per annum per member;
2. b. Reim­burse­ment of  Expens­es  to  BC/Micro/Corporate/Agent  :  R1/-  per annum per member;
3. Reim­burse­ment of Admin­is­tra­tive expens­es to par­tic­i­pat­ing Bank: Rs.1/- per annum per member.

Q13.  Will this cov­er be in addi­tion to cov­er under any oth­er insur­ance scheme the sub­scriber may be cov­ered under?

Yes.