The Pradhan Mantri Suraksha Bima Yojana (PMSBY) is a government-backed accidental insurance scheme in India. It was launched by the Prime Minister of India with the aim of providing affordable accidental death and disability insurance coverage to individuals across the country. Here are some key features and details of PMSBY:
1. Eligibility: Any Indian citizen between the ages of 18 to 70 years can enroll in PMSBY.
2. Enrollment: To enroll in the scheme, individuals need to have a savings bank account and provide their consent for auto-debit of the premium from their bank account on an annual basis.
3. Premium: The premium for PMSBY is very low, typically around Rs. 20 per year, making it accessible to a wide range of people. This premium is deducted automatically from the subscriber's bank account.
4. Coverage: PMSBY provides insurance coverage for accidental death and disability. In case of accidental death, the insured person's nominee receives a lump sum payment of Rs. 2 lakh. In the case of total and irreversible disability, the insured person receives a lump sum payment of Rs. 2 lakh.
5. Partial Disability: For partial and irreversible disability, the insurance coverage amount is Rs. 1 lakh. The specific conditions for partial disability are defined in the policy document.
6. Renewal: The coverage under PMSBY is annual and needs to be renewed every year by paying the premium. Subscribers can continue to renew the policy until they reach the age of 70.
7. Nomination: Subscribers are required to nominate a beneficiary (nominee) who will receive the insurance payout in case of an accident resulting in death or disability.
8. Government Backing: PMSBY is administered by public and private sector insurance companies. The scheme is backed by the Government of India.
9. Income Tax Benefits: Premiums paid for PMSBY are eligible for a tax deduction under Section 80C of the Income Tax Act.
PMSBY aims to provide financial security to individuals and their families in case of accidental death or disability. It is a part of the Indian government's efforts to increase insurance coverage among the population and ensure that even economically vulnerable sections of society have access to essential insurance coverage for accidental risks.
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