PM 12 Rs Insurance Scheme Details: Eligibilty and Benefits

Life is uncertain, and accidents can occur anytime. In the absence of adequate preparedness, the harmful consequences of accidents may be further amplified. For instance, accident injuries may require expensive medical treatments. Without an insurance policy, the medical bills may lead to financial strain or may even discourage individuals from seeking high-quality treatment.

To protect citizens from such a scenario, the Indian government has introduced the Pradhan Mantri Suraksha Bima Yojana (PMSBY), which is also known as the PM 12 Rs Insurance Scheme. This article will list all important PM Insurance Scheme details so that you can obtain the right coverage against accidents.

Who is Eligible under the PM 12 Rs Insurance Scheme?

This scheme was launched on 9 May 2015 in Kolkata by Prime Minister Shri Narendra Modi. It covers individuals in the age range of 18-70 years who have a bank account. To be eligible, individuals must also have an Aadhaar card linked to their bank account.

What is the Cost of Enrolling in this Scheme?

This scheme aims to cover lower-income individuals to achieve social welfare. It was introduced with premiums starting at just ₹12 per annum. However, starting from June 1, 2022, the premium has been increased to ₹20 per annum.

What are the Benefits Provided under this Scheme?

It is a one-year scheme which provides the following benefits in case of an accident:

• ₹2 Lakhs in case of death
• ₹2 Lakhs in case of permanent full disability
• ₹1 Lakh in case of partial disability

What does the Scheme Exclude?

PM 12 Rs Insurance Scheme does not cover the following scenarios:

• Death by suicide
• Temporary disabilities

What is the Process of Enrolling in this Scheme?

The policy can be obtained for a period of one year starting from 1 June. An application form along with the Aadhaar card must be submitted. The application form must contain details like name, contact information, nominee, etc.

You can obtain the form through one of the following means:

• Approach a participating bank or insurer.
• Download the application form from the government's Jansuraksha website.
• Log into the internet banking portal of the participating bank.
• Use the SMS facility in which an activation SMS is sent to the applicant.

How does this Scheme Operate?

Once the policy is subscribed to, the premium amount is auto-debited from the linked bank account. After the lapse of one year, the policy can be renewed annually.

In the event of an accident, the policyholder must immediately inform the bank/insurance company and submit the claim form. The form, along with the FIR, post-mortem report, or death/disability certificate, must be submitted within 30 days of the accident. The bank then verifies the documents, after which the insurer processes the claim. The claim amount is directly credited to the bank account of the insured/nominee/legal heir.

What are the Advantages of this Scheme?

This scheme is offered by Public Sector General Insurers and has the following advantages:

• It has the most affordable premiums in the insurance industry.
• It offers convenience to the buyers as the amount is auto-debited from the bank accounts, and automatic renewal can also be set up. This also reduces the possibility of missing premium payment dates or committing defaults.
• In the case of the unfortunate demise of the policyholder, their dependents are taken care of. The claim amount is deposited into the bank account of the nominee/legal heir.
• It provides flexibility to the buyers as they can easily exit or re-enter the policy.
• As the scheme is backed by the government, it is highly reliable when it comes to claims processing. The genuine claims of the policyholders are settled without many hassles.
• Section 80C of the Income Tax Act provides tax deductions for investments made in PMSBY.  Additionally, as per Section 10(10D), the sum insured of Rs. 1 lakh is non-taxable. This further reduces the overall policy cost.

Having discussed the 12 Rupees Insurance Scheme details, it is clear that it offers an all-around protection to citizens. If you want to supplement the coverage provided by this government scheme, you can also consider opting for private insurers. Niva Bupa is one such company that has insured the lives of 70,00,000+ people. In addition to accident policies, we also offer health insurance plans, critical illness plans, and travel plans. Contact us now to compare and select the right plans as per your requirements.

Frequently Asked Questions

1. What is the PM 12 Rs Insurance Scheme and what does it cover?

   The PM 12 Rs Insurance Scheme, officially known as Pradhan Mantri Suraksha Bima Yojana (PMSBY), was launched on 9 May 2015 by Prime Minister Shri Narendra Modi. It provides accidental death and disability insurance cover of Rs. 2 lakh to the policyholder's nominee in case of death. The premium amount is Rs. 12 yearly, which is auto-debited from the insured's bank account.

2. Who is eligible to enrol in the PM 12 Rs Insurance Scheme?

   All individual account holders of participating banks/Post offices, in the age group of 18 to 70 years are entitled to join. It covers individuals who have a bank account and are Indian residents or NRIs.

3. What benefits are provided under the PMSBY scheme?

   In case of accidental death, the nominee receives Rs. 2 lakh, and for total and permanent disability, the policyholder gets Rs. 2 lakh. For partial disability due to an accident, the subscriber receives Rs. 1 lakh. Death/disability resulting from natural calamities is also covered under PMSBY as they are considered accidents.

4. What is the policy period and renewal process for PMSBY?

   The coverage is for one year, from June 1 to May 31, and can be renewed annually.  To join or continue via auto-debit, you need to submit the prescribed forms by May 31 each year. All applicants must renew the scheme every year on 31st May to continue enjoying the benefits. 

5. How do I claim benefits under the PM 12 Rs Insurance Scheme?

   Policyholders or nominees should contact the bank or insurance company where the policy was purchased to raise a claim and obtain the claim form. The claim form should be submitted within 30 days of the accident along with required documents. 

6. What documents are required for PMSBY enrolment and claims?

   The primary KYC documents are for PMSBY enrolment. For claims, required documents include the duly filled claim form, death certificate (for death claims), medical certificates for disability, and FIR copy in case of accidental death. Proof of permanent disability and other relevant medical documentation are needed for disability claims.