Pradhan Mantri Suraksha Bima Yojana – FAQ

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:

i.       
On
attaining age 70 years (age neared birth day).

ii.       
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?

i.       
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.

ii.       
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?

a.   
Insurance Premium to PSGIC / other insurance
company: Rs.10/- per annum per member;

b.   
Reimbursement of Expenses to
BC/Micro/Corporate/Agent : Rs.1/- per annum per member;

c.   
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.

Taxclick Team
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