In the recent Union Budget 2015-16, Finance Minister, Arun Jaitley announced the Pradhan Mantri Suraksha Bima Yojana for all Indians especially the poor and the under-privileged.
This scheme provides an accident insurance, particularly death due to accident.
1. Eligibility: Individuals under the age group of 18 to 70 years with bank account are eligible to open.
Individuals looking to join the scheme need to give simple form to bank for people having bank account with Aadhaar number linked to it. Again, it's so important to have an Aadhaar Acount.
2. Premium: The premium to be paid is Rs 12 each year, which is as good as free. The government seems to be charging just a token amount, while bearing bulk of the charges.
3. Payment Mode: The only available mode at the moment towards payment of premium is an auto-debit by the bank from the subscribers account.
4. Risk Coverage: For accidental death and full disability a sum of Rs 2 Lakh is covered. This is a decent sum for the small premium being paid by the seubecriber.
For partial disability a sum of Rs.1 Lakh is provided and this could be beneficial where the subscriber is the sole earning memer of the family.
5. Terms of Risk Coverage: At the time of opening the account, there would be two options that would be available. One would be the option to go for auto renewal evety year or just an annual option. The choice remains with the individual.
6. The scheme will be offered by all Public Sector General Insurance Companies and all other insurers who are willing to join the scheme and tie-up with banks for this purpose.
7. The government will bear the Expenditure in excess that arises apart from the individual's premium contribution.
8. While, other ministries can co-contribute premium for various categories of their beneficiaries from their budget or from Public Welfare Fund created in this budget from unclaimed money. However, this will be decided separately during the year.
Along with this, the government has announced various other insurance schemes such as Atal Pension Yojana, Pradhan Mantri Jeevan Jyoti Bima Yojana.