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Social Security Schemes
Pradhan Mantri Suraksha Bima Yojana (PMSBY)
“A large proportion of India’s population is without insurance of any kind, health, accidental or life. Worryingly, as our young population ages, it is also going to be pension-less. Encouraged by the success of the Pradhan Mantri Jan Dhan Yojana (PMJDY), I propose to work towards creating a universal social security system for all Indians that will ensure that no Indian citizen will have to worry about illness, accidents or penury in old age,” said Finance Minister Arun Jaitley in his budget speech on 1 Mar 2015. Schemes were launched by Prime minister on 9 May 2015.
Government announced insurance schemes Pradhan Mantri Suraksha Bima Yojana (for Accidental Death and Disability), Pradhan Mantri Jeevan Jyoti Bima Yojana (for life insurance) and Atal Pension Yojna (for pension). This article gives the highlights of these schemes. These schemes would be come in effect from 1 June 2015.
The government plans to use technology to the extent possible to reach out to the beneficiaries, thereby plugging leakages in the system. The JAM (Jan Dhan Yojana, Aadhaar and mobile) number trinity will allow government to transfer benefits in a leakage-proof, well-targeted and cashless manner.
Pradhan Mantri Suraksha Bima Yojana
Highlights of the Pradhan Mantri Suraksha Bima Yojana (Pmsby – Scheme 1 – for Accidental Death Insurance) are:
- Eligibility :Available to people in age group 18 to 70 years with bank account.
- Premium : 12 per annum.
- Payment Mode :The premium will be directly auto-debited by the bank from the subscribers account. This is the only mode available.
- Risk Coverage : For accidental death and full disability – Rs 2 Lakh and for partial disability – Rs 1 Lakh.
- Eligibility :Any person having a bank account and Aadhaar number linked to the bank account can give a simple form to the bank every year before 1st of June in order to join the scheme. Name of nominee to be given in the form.
- Terms of Risk Coverage :A person has to opt for the scheme every year. He can also prefer to give a long-term option of continuing in which case his account will be auto-debited every year by the bank.
- Who will implement this Scheme? :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.
- The premium paid will be tax-free under section 80C and also the proceeds amount will get tax-exemption u/s 10(10D). But if the proceeds from insurance policy exceed Rs.1 lakh, TDS at the rate of 2% from the total proceeds if no Form 15G or Form 15H is submitted to the insurer.