The Pradhan Mantri Suraksha Bima Yojana (PMSBY) is a government-backed accident insurance scheme providing affordable financial protection to individuals in India. It recognizes the inherent risks faced by many, particularly those in the unorganized sector, and aims to mitigate the financial burden caused by accidental death or disability.
Objectives of PMSBY
- Social Security: Extend accidental insurance coverage to the economically disadvantaged and those working in the informal sectors.
- Financial Safety Net: Provide financial support to families in case of accidental death or disability of the insured.
- Affordable Premiums: Offer low-cost insurance with an annual premium of just Rs. 12, making it accessible to a wide population.
- Simple Enrollment: Facilitate easy enrollment through banks and other financial institutions.
Key Features of PMSBY
- Eligibility: Individuals between 18-70 years holding a savings bank account.
- Coverage:
- Accidental Death: Rs. 2 lakhs
- Permanent Total Disability: Rs. 2 lakhs
- Permanent Partial Disability: Rs. 1 lakh
- Premium: Annual premium of Rs. 12, automatically debited from the linked bank account.
- Renewal: Annual renewal required.
Impact of PMSBY
- Millions Insured: The scheme has seen the enrollment of a significant number of individuals, promoting financial inclusion and providing security.
- Support for Families: PMSBY has offered financial assistance to families who have lost earning members to accidents.
Case Study: A Lifeline for a Daily Wage Laborer’s Family
After the accidental death of a daily wage laborer enrolled under PMSBY, his family received the insurance amount, providing crucial financial support during a difficult time.
FAQs About PMSBY
- Who can enroll in PMSBY? Anyone aged 18-70 years with a savings bank account.
- How to enroll? You can enroll through your bank or authorized financial institutions.
MCQs
- The primary focus of PMSBY is to provide:
- A. Build modern roads
- B. Eradicate rural poverty
- C. Promote export of agricultural products
- D. Accidental insurance coverage
- Which of these is NOT a benefit of PMSBY?
- A. Insurance for accidental death
- B. Insurance for disability
- C. Medical insurance for critical illness
- D. Very low annual premium
Answer Key: 1-D, 2-C
Conclusion
The Pradhan Mantri Suraksha Bima Yojana stands as a crucial social security initiative. Its simple enrollment process and minimal premiums have made insurance accessible to those previously underserved by traditional insurance models. The success of PMSBY depends on continued widespread enrollment, raising awareness, and effective claim processing. The scheme has the potential to alleviate the financial distress for families who are often the hardest hit by unexpected tragedies.